factual

How is 'Affiliate' defined in relation to the Big Air Trampoline Park franchisor or franchisee?

Big_Air_Trampoline_Park Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (b) "Affiliate" means any person or entity that controls, is controlled by, or is in common control with, Franchisor or Franchisee.

Source: Item 23 — RECEIPT (FDD pages 53–255)

What This Means (2025 FDD)

According to the 2025 Big Air Trampoline Park Franchise Disclosure Document, an "Affiliate" is defined as any person or entity that controls, is controlled by, or is in common control with either the franchisor or the franchisee. This definition is important because it clarifies the scope of various obligations and restrictions outlined in the franchise agreement.

For a prospective Big Air Trampoline Park franchisee, understanding this definition is crucial. It means that the franchisor can't circumvent its obligations by operating through a related entity. Similarly, the franchisee's obligations extend to entities they control, preventing them from using another company to bypass the terms of the agreement.

For example, the definition of "Affiliate" is relevant in the context of territorial protections. The franchise agreement states that neither Big Air Trampoline Park nor any affiliate will establish or license another person or entity to establish a competing business within the franchisee's territory. This prevents the franchisor from setting up a competing location through a subsidiary or related company, thus protecting the franchisee's market area. Similarly, the definition of "Affiliate" is relevant to the Local Advertising Cooperative, as the owners in the DMA will form a cooperative advertising association among themselves when the DMA encompasses Big Air Trampoline Facilities operated by at least two other franchisees or Big Air Trampoline Facility operators (including Franchisor's parent or Affiliates).

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.