What is the dependency between Section 15 and Section 16 in the Big Air Trampoline Park agreement?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.6 If Franchisee shall at anytime determine to sell, in whole or in part, the Big Air Trampoline Business, Franchisee shall obtain a bona fide, executed, written offer ("Purchase Offer") for the Big Air Trampoline Business together with all real or personal property, leasehold improvements and other assets used by Franchisee in its Big Air Trampoline Business from a responsible, arms' length, and fully disclosed purchaser and shall submit an exact copy of such Purchase Offer to Franchisor.
Franchisor will have a right of first refusal to purchase the Big Air Trampoline Business as provided in Section 16.
- (g) the parties to the proposed transaction will have entered into a binding agreement subject only to the rights of Franchisor set out in Section 16.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to the 2025 Big Air Trampoline Park FDD, Section 15 and Section 16 of the franchise agreement are directly linked regarding the sale of a Big Air Trampoline Park business. Specifically, Section 15 outlines the conditions and procedures a franchisee must follow if they decide to sell their business. A critical part of this process involves providing Big Air Trampoline Park with a "Purchase Offer."
Once Big Air Trampoline Park receives this Purchase Offer under Section 15, Section 16 comes into play. Section 16 grants Big Air Trampoline Park the "right of first refusal" to purchase the franchisee's business. This means that before a franchisee can sell to a third party, Big Air Trampoline Park has the option to buy the business themselves, based on the terms of the Purchase Offer.
In practical terms, a Big Air Trampoline Park franchisee cannot proceed with selling their business to another buyer without first offering Big Air Trampoline Park the opportunity to purchase it. This gives Big Air Trampoline Park control over who joins their franchise system and ensures they can maintain brand standards and operational consistency. The franchisee must ensure that any potential sale agreement with a third party is contingent upon Big Air Trampoline Park waiving their right of first refusal under Section 16.