Under what circumstances can Big Air Trampoline Park establish maximum resale prices?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will control the quality of the Services and Products to avoid quality problems or product liability claims that could reflect adversely on Franchisee or Franchisor in the minds of consumers.
- 8.5 In prescribing standards, specifications, processes, procedures, requirements or instructions under Section 8.4 or any other provision of this Agreement, Franchisor will provide guidance to Franchisee, as required in Franchisor's sole discretion, in determining the prices to be charged by Franchisee for Services or Products.
Franchisor shall not have control over the day-to-day managerial operations of the Big Air Trampoline Business, and Franchisee shall be free to establish its own prices; provided, however, Franchisor shall have the right to set maximum resale prices as part of any national or regional promotion or multi-area marketing plan.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 41)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, franchisees are generally free to set their own prices for services and products. However, Big Air Trampoline Park retains the right to establish maximum resale prices under specific conditions.
Specifically, Big Air Trampoline Park can set maximum resale prices as part of any national or regional promotion or multi-area marketing plan. This means that while franchisees have autonomy in their day-to-day pricing, Big Air Trampoline Park can implement price ceilings during larger marketing initiatives that span multiple locations or regions.
This provision allows Big Air Trampoline Park to ensure consistent pricing and branding during promotional periods, which can be beneficial for attracting customers and maintaining brand image. However, it also means that franchisees may have to adjust their pricing strategies to align with these promotions, potentially impacting their profit margins during those times. Franchisees should factor in these potential price adjustments when forecasting revenue and profitability.