What constitutes a material breach of the Franchise Agreement for a Big Air Trampoline Park franchise?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
n default of this Agreement; (ii) reduce the size of Franchisee's Territory, as determined by Franchisor in Franchisor's discretion, or (iii) terminate this Agreement (subject to any state laws to the contrary, where state law shall prevail), effective upon 30 days written notice to Franchisee, if Franchisee breaches any other provision of this Agreement and fails to cure the default during such 30 day period. In that event, this Agreement will terminate without further notice to Franchisee, effective upon expiration of the 30-day period. Defaults shall include, but not be limited to, the following:
(a) Franchisee fails to maintain the then-current operating procedures and standards established by Franchisor as set forth herein or in the Operations Manual or otherwise communicated to Franchisee;
(b) Franchisee fails, refuses or neglects to obtain Franchisor's prior written approval or consent as required by this Agreement;
(c) Franchisee fails or refuses to comply with the then-current requirements of the Operations Manual;
(d) Franchisee, or any partnership, joint venture, limited liability company, corporation or other business entity in which Franchisee has a controlling equity interest or which has a controlling interest in Franchisee, defaults under any term of the Lease of the Big Air Trampoline Facility or any other premises used by Franchisee to operate the Big Air Trampoline Business, any other franchise agreement with Franchisor or any other agreement material to the Big Air Trampoline Business and such default is not cured within the time specified in such Lease, other franchise agreement or other agreement;
(e) Franchisee fails, refuses or neglects to submit a statement of monthly revenues accompanying the Royalty Fee or National Advertising and Promotions Fees or any other report required under the Agreement when due;
(f) Franchisee fails, refuses or neglects to accurately report Gross Revenues, sales information or other information required by Franchisor to be reported; or
(g) Franchisee fails to comply with any other provision of this Agreement or any specification, standard or operating procedure prescribed by Franchisor and does not correct such failure within 10 days (or 30 days if this is the first non-compliance or breach) after written notice from Franchisor (which shall describe the action that Franchisee must take) is delivered to Franchisee.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to the 2025 FDD, a material breach of the Franchise Agreement for a Big Air Trampoline Park franchise can occur in several instances. These include failing to maintain operating standards, neglecting to obtain required prior written approval from Big Air Trampoline Park, or not complying with the Operations Manual. Additionally, a default under the lease of the Big Air Trampoline Facility, another franchise agreement with Big Air Trampoline Park, or any other agreement material to the Big Air Trampoline Business also constitutes a material breach if not cured within the specified time.
Further, the failure to submit monthly revenue statements, royalty fees, or national advertising and promotions fees, or neglecting to accurately report gross revenues or sales information, are considered material breaches. Non-compliance with any other provision of the Franchise Agreement, or any standard or operating procedure prescribed by Big Air Trampoline Park, also constitutes a material breach if not corrected within 10 days after written notice, although a 30-day cure period is allowed for the first instance of non-compliance. Each failure to pay Royalty Fees, National Marketing and Promotions Fees, and other amounts payable to Franchisor when due shall constitute a material breach of this Agreement.
For Multi-Unit Developers, failure to provide an updated form of Attachment D (equity owners) within 10 business days of any change in the equity ownership of Multi-Unit Developer constitutes a material default of the agreement. These stipulations highlight the importance of adhering to Big Air Trampoline Park's operational guidelines, financial obligations, and legal requirements to maintain a compliant and successful franchise operation. Franchisees should carefully review the Franchise Agreement and Operations Manual to fully understand their obligations and avoid potential breaches.