Is a Big Air Trampoline Park associate allowed to divert business from other franchisees?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
14.2 Franchisee covenants and agrees that:
(a) During the Term of this Agreement and any Successor Terms thereof, Franchisee, its owners, Designated Business Managers, officers, directors, managers, members, and partners shall not, without the prior written consent of Franchisor, either individually or in a partnership, corporation, limited liability company, joint venture or other business entity or jointly or in conjunction with any person, firm, association, syndicate or corporation, as principal, agent, shareholder, member, partner or in any manner whatsoever, carry on or be engaged in or be concerned with or interested in or advise, lend money to, guarantee the debts or obligations of or permit its name or any part thereof to be used or employed in any business operating in competition with any business operating indoor trampoline recreation and party centers featuring trampolines, foam pits, rock climbing walls and other elements and the sale of related Products, or any business similar to the Big Air Trampoline Business ("Competitive Business") as carried on from time to time during the Term of this Agreement, including any Successor Term.
(b) Upon termination or expiration of the Term or any Successor Term, or the transfer, sale or assignment of this Agreement by Franchisee, neither Franchisee, the Designated Business Manager nor Franchisee's owners, officers, directors, managers, members, or partners will have any direct or indirect interest (i.e. through a relative) as a disclosed or beneficial owner, investor, partner, director, officer, employee, consultant, representative or agent, for two years, in any Competitive Business in: (1) the Territory or any other franchisee's territory; (2) within 100 miles of the Territory or any other franchisee's territory; or (3) within 100 miles of any Franchisor or Affiliate-owned Big Air Trampoline Business.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to the 2025 FDD, Big Air Trampoline Park franchisees face restrictions on engaging in competitive businesses during and after the franchise term. During the term of the agreement, the franchisee, its owners, designated business managers, officers, directors, managers, members, and partners are prohibited from being involved in any business that competes with Big Air Trampoline Park, including indoor trampoline recreation and party centers, without prior written consent from the franchisor. This restriction applies to any involvement, whether as a principal, agent, shareholder, member, partner, or in any other capacity.
Post-termination, for a period of two years after the agreement expires, is terminated, or is transferred, sold, or assigned by the franchisee, neither the franchisee, the designated business manager, nor the franchisee's owners, officers, directors, managers, members, or partners can have a direct or indirect interest in any Competitive Business. This restriction extends to the territory, any other franchisee's territory, or within 100 miles of either, as well as within 100 miles of any franchisor or affiliate-owned Big Air Trampoline Park business. The term 'indirect interest' includes interests held through relatives, covering roles such as owner, investor, partner, director, officer, employee, consultant, representative, or agent.
These non-compete clauses are designed to protect Big Air Trampoline Park's business model, market share, and franchisee network. Such restrictions are common in franchising to prevent franchisees from using the franchisor's proprietary information and systems to compete against the brand, either during the franchise term or shortly thereafter. Prospective franchisees should carefully consider the scope and duration of these restrictions, as they could significantly impact their ability to engage in similar business ventures in the future.