What is considered a 'Competitive Business' in relation to a Big Air Trampoline Park franchise?
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.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, a 'Competitive Business' is defined as any business operating in competition with indoor trampoline recreation and party centers. This includes businesses featuring trampolines, foam pits, rock climbing walls, and the sale of related products, or any business similar to the Big Air Trampoline Business. This definition applies during the term of the Franchise Agreement and any Successor Terms.
This means that during the term of the agreement, a franchisee, their owners, designated business managers, officers, directors, managers, members, and partners are restricted from engaging in or being involved with any business that directly competes with Big Air Trampoline Park. This restriction extends to various forms of involvement, including being a principal, agent, shareholder, member, partner, or advisor to a competing business. It also includes lending money to or guaranteeing the debts of a competing business.
Upon termination or expiration of the agreement, the restrictions continue, preventing the franchisee, designated business manager, and their associated parties from having any direct or indirect interest in a Competitive Business. This includes ownership, investment, or employment in a competing business, even through relatives. This clause is designed to protect Big Air Trampoline Park's market position and prevent franchisees from using their knowledge and experience gained from the franchise to benefit a competing venture.
This non-compete clause is a standard element in franchise agreements, intended to protect the franchisor's brand and business model. Prospective franchisees should carefully consider the scope and duration of these restrictions, as they can significantly impact their ability to engage in similar business ventures in the future. It is advisable to seek legal counsel to fully understand the implications of this clause before signing the Franchise Agreement.