Where is the definition of 'transfer' by the franchisee found in the Big Air Trampoline Park Franchise Agreement?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Agreement | Summary |
|---|---|---|
| d. | Not Applicable | Subject to state law. |
| Termination by you | ||
| e. | Not Applicable | |
| Termination by Franchisor | ||
| without cause | ||
| f. Termination by Franchisor with cause | Section 7 | Franchisor can terminate you if you are in default. |
| g. | Not Applicable | |
| "Cause" | ||
| defined – | ||
| curable | ||
| defaults | ||
| h. "Cause" defined – non curable defaults | Section 7 | Failure to comply with Development Schedule, failure to comply with any obligations in the Multi-Unit Development Agreement or any Franchise Agreement, termination of approved affiliate of Multi-Unit Developer, etc., cease to be a franchisee in good standing; fail to comply with the transfer provisions |
| i. | Sections 10 and 11 | Confidentiality and non-competition. |
| Your obligations on | ||
| termination/ non-renewal | ||
| j. | Section 8.1 | No restriction on Franchisor's right to assign. |
| Assignment of contract by | ||
| Franchisor | ||
| k. Transfer by you – definition | Section 8.2 | Includes transfer of contract, assets, ownership change or any interest in the Area Development or Franchise Agreements. Any transfer of a single-unit Big Air Trampoline Facility will be governed by the Franchise Agreement to which the single-unit Big Air Trampoline Facility is bound. |
| l. Franchisor's approval of transfer by Multi-Unit Developer | Section 8.2 | Franchisor must approve all transfers and Franchisor has right of first refusal on all proposed transfers. |
| m. Conditions for Franchisor's approval of transfer | Section 8.2 | Paid up, not in default, release signed, transfer fee paid, transferee is approved, signs current Multi-Unit Development Agreement, etc. (See also r, below). |
| n. Our right of first refusal to acquire your business | Section 8.2(e) | Franchisor may match any bona fide offer for your area development rights. |
| o. Our option to purchase your business | Section 8.2(e) | Franchisor may match any bona fide offer for your area development rights. |
| p. | Not Applicable | |
| Your death or disability | ||
| q. Non-competition covenants during the term of the franchise | Section 11 | No involvement in competing business anywhere, subject to state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 41–46)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, the definition of 'transfer' by the franchisee is found in Section 8.2 of the Multi-Unit Development Agreement. The FDD specifies that this definition includes the transfer of the contract, assets, ownership change, or any interest in the Area Development or Franchise Agreements. It also clarifies that any transfer of a single-unit Big Air Trampoline Facility will be governed by the Franchise Agreement to which the single-unit Big Air Trampoline Facility is bound.
This is important for prospective franchisees to understand because it outlines the scope of what Big Air Trampoline Park considers a transfer. Franchisees need to be aware that even changes in ownership structure or asset transfers can be classified as a transfer, requiring franchisor approval. This provision ensures that Big Air Trampoline Park maintains control over who operates its franchises and that any new operators meet their standards.
Furthermore, the FDD states that Big Air Trampoline Park must approve all transfers and has the right of first refusal on all proposed transfers. This means that before a franchisee can sell or transfer their business, they must first offer Big Air Trampoline Park the opportunity to purchase it on the same terms as any other potential buyer. This right of first refusal is a common provision in franchise agreements, allowing franchisors to maintain control over their brand and network.
Finally, the FDD lists several conditions for Big Air Trampoline Park's approval of a transfer, including that the franchisee must be paid up, not in default, and sign a release. Additionally, the transferee must be approved by Big Air Trampoline Park and sign the current Multi-Unit Development Agreement. These conditions ensure that any new franchisee meets Big Air Trampoline Park's standards and is committed to operating the franchise in accordance with the agreement.