Where will disputes be arbitrated for a Big Air Trampoline Park franchise?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Multi- | Summary | |
|---|---|---|---|
| Unit Development Agreement | |||
| r. Non-competition covenants after the franchise is terminated or expires | Section 11.2 | No competing business for two years within 100-mile radius of the Development Territory or within 100-mile radius of any Big Air Trampoline Facility owned by a franchisee, Franchisor, our Affiliates or Multi-Unit Developer, subject to state law. | |
| s. Modification of the | Section 12 | Modifications only upon written agreement of | |
| Agreement | the parties. | ||
| t. Integration/merger clause | Section 12 | Only the terms of the Multi-Unit Development Agreement are binding (subject to applicable state laws). Any representations or promises outside of this Disclosure Document and the Multi-Unit Development Agreement may not be enforceable, subject to state law. | |
| u. Dispute resolution by arbitration or mediation | Section 21 | Except for certain claims, all disputes will be arbitrated in Ladera Ranch, California, subject to state law. | |
| v. Choice of forum | Section 21 | Arbitration must be in California, except as provided in a State Specific Addendum, subject to applicable state law. | |
| w. Choice of law | Section 18 | California law applies, except as provided in a State Specific Addendum, subject to applicable state law. |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–49)
What This Means (2025 FDD)
According to the 2025 Big Air Trampoline Park Franchise Disclosure Document, disputes will be arbitrated in Ladera Ranch, California. This is where the company is headquartered. However, this is subject to state law and any specific provisions outlined in a State Specific Addendum to the franchise agreement. This means that depending on the franchisee's location, the arbitration location or process could potentially differ.
For a prospective franchisee, this means that if a dispute arises with Big Air Trampoline Park, the arbitration proceedings, with some exceptions, will generally take place in California, regardless of where the franchise is located. This could involve travel and associated costs for the franchisee to attend the arbitration. It is important to review the State Specific Addendum, if any, to understand if there are any modifications to this requirement based on the franchisee's state.
Choice of law dictates which jurisdiction's laws will be applied to interpret the franchise agreement and resolve disputes. In this case, California law generally applies, except as provided in a State Specific Addendum. This means that the laws of California will govern the franchise relationship, which could impact how disputes are resolved and the rights and obligations of both the franchisee and Big Air Trampoline Park. Franchisees should consult with a legal professional to understand the implications of these provisions, especially in light of their own state's laws and any potential conflicts.