What is the definition of 'Adjacent Territory' in the Big Air Trampoline Park franchise agreement?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
4. TERRITORY
4.1 During the Term and for so long as Franchisee is in compliance with all of its obligations hereunder, except as otherwise provided in this Agreement, and subject to Franchisor's reservation of rights as set forth in Section 4.2 and as provided in Section 4.4 below, neither Franchisor nor any Affiliate will establish or license another person or entity to establish a Big Air Trampoline Business using the Marks licensed to Franchisee within the Territory encompassed by the boundaries set forth in Attachment A, attached hereto and incorporated herein by reference. Except as otherwise specifically provided in this Agreement, this Agreement does not restrict Franchisor or its Affiliates and does not
grant rights to Franchisee to pursue any of Franchisor's or its Affiliates other business concepts other than the Big Air Trampoline Business.
4.2 Franchisee acknowledges that the Franchise granted hereunder is non-exclusive and that Franchisor and its Affiliates retain the exclusive right, among others:
(a) to use, franchise and/or license others to use, the Marks and System for the operation of Big Air Trampoline Businesses at any location other than in the Territory, regardless of proximity to the Territory;
(b) to offer the Services or Products, or grant others the right to offer the Services or Products, whether using the System and /or Marks or other trademarks or service marks, through alternative channels of distribution, including without limitation, television, catalog sales, wholesalers, retail outlets or other distribution outlets (other than Big Air Trampoline Businesses), or by Internet commerce (e-commerce), mail order or otherwise, whether inside or outside the Territory;
(c) to use, license and/or franchise the use of trademarks or service marks other than the Marks, whether in alternative channels of distribution or at any location including the Territory, in association with operations that are similar to or different than the Big Air Trampoline Business;
(d) to use, license and/or franchise the Marks and the System in connection with the provision of other services and products or in alternative channels of distribution such as those described in 4.2(b), at any location including the Territory;
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the term 'Adjacent Territory' is not explicitly defined for Big Air Trampoline Park franchises. However, the document does address territorial rights and the franchisor's rights outside of a franchisee's territory.
The FDD states that franchisees receive a territory defined in Attachment A of the franchise agreement, and as long as the franchisee complies with the agreement, Big Air Trampoline Park will not establish or license another business using the same marks within that territory. However, this grant is non-exclusive. Big Air Trampoline Park retains the right to operate or franchise other businesses outside the franchisee's territory, regardless of proximity. They can also use other trademarks or service marks, offer services or products through alternative channels, and operate similar or different businesses outside the defined territory.
For a prospective franchisee, this means that while you are granted a specific territory, Big Air Trampoline Park retains significant freedom to operate or franchise other businesses nearby or through other channels. It would be prudent to seek clarification from the franchisor regarding their specific plans for development in areas adjacent to your territory and to understand how their other business activities might impact your franchise.