What is the consequence of violating the transfer restrictions in the Big Air Trampoline Park franchise agreement?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.1 Multi-Unit Developer shall be in default under this Agreement should Multi-Unit Developer (or its affiliate): (a) fail to comply with the Development Schedule; (b) fail to perform any of its obligations under this Agreement or any individual Franchise Agreement; (c) cease to be a franchisee of Franchisor in good standing; or (d) fail to comply with the provisions on transfer contained herein.
- 7.2 Upon the default, Franchisor shall have the right, at its option, and in its sole discretion, to do any or all of the following:
- (a) terminate this Agreement;
- (b) terminate the territorial exclusivity granted to Multi-Unit Developer;
- (c) reduce the size of the Multi-Unit Developer's Development Territory or the number of Big Air Trampoline Facilities Multi-Unit Developer may develop in the Development Territory; or
- (d) accelerate the Development Schedule on immediate written notice.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to the 2025 Big Air Trampoline Park FDD, if a Multi-Unit Developer fails to comply with the transfer provisions outlined in the agreement, it constitutes a default. In the event of such a default, Big Air Trampoline Park has several options.
Big Air Trampoline Park can choose to terminate the agreement entirely, effectively ending the franchise relationship. Alternatively, they can terminate the territorial exclusivity that was granted to the Multi-Unit Developer, meaning the developer would no longer have exclusive rights to develop Big Air Trampoline Park locations in a specific area.
Additionally, Big Air Trampoline Park can reduce the size of the Multi-Unit Developer's territory or decrease the number of Big Air Trampoline Park facilities the developer is allowed to build within that territory. Finally, Big Air Trampoline Park can accelerate the development schedule, requiring the Multi-Unit Developer to open new locations more quickly than originally planned.