What is the definition of 'Loan' in the context of the Big Air Trampoline Park franchise agreement?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Own, maintain, engage in, be employed by, advise, assist, invest in, franchise, make loans to or have any interest in any business which is the same as or substantially similar to the Big Air Trampoline Facilities.
11.2 Multi-Unit Developer covenants that, except as otherwise approved in writing by Franchisor, Multi-Unit Developer shall not, for a continuous uninterrupted period commencing upon the expiration or termination of this Agreement, regardless of the cause for termination, and continuing for two years thereafter, either directly or indirectly, for itself or through, on behalf of or in conjunction with any person, persons, partnership or corporation, own, maintain, engage in, be employed by, advise, assist, invest in, franchise, make loans to, or have any interest in any business which is the same as or substantially similar to the Big Air Trampoline Facility and which is located within a radius of 100 miles of the Development Territory hereunder or within a radius of a 100 miles of the location of any Multi-Unit Developer, company-owned Big Air Trampoline Facility, affiliate owned Big Air Trampoline Facility, or franchisee-owned Big Air Trampoline Facility under the System which is in existence on the date of expiration or termination of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the term 'loan' is referenced within the context of activities that a franchisee is restricted from engaging in, both during the agreement term and for a period afterward. Specifically, the FDD states that franchisees are restricted from making loans to any business that is the same as or substantially similar to a Big Air Trampoline Park. This restriction applies during the term of the franchise agreement and extends for a period of two years following the termination or expiration of the agreement.
This clause is part of a broader set of restrictions designed to prevent franchisees from using their knowledge and resources gained from the Big Air Trampoline Park system to support competing businesses. The restriction on making loans is included alongside prohibitions on owning, operating, or investing in similar businesses, highlighting the franchisor's intent to protect its business model and market position.
For a prospective Big Air Trampoline Park franchisee, this means that they cannot finance a competing trampoline park or similar recreation business, either directly or indirectly. This restriction is in place to prevent franchisees from leveraging their experience and potential profits from their Big Air Trampoline Park franchise to benefit a competing venture. Franchisees should carefully consider these limitations, especially if they have existing relationships or interests in related industries, to ensure they can fully comply with the terms of the franchise agreement.