What is the duration of the Intellectual Property License granted to Big Air Trampoline Park by H2O?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
The "BIG AIR TRAMPOLINE PARK and LOGO" Marks and the System are owned by H2O. H2O has granted us a non-exclusive license ("Intellectual Property License") to use the intellectual property for purposes of franchising the System around the world. The Intellectual Property License extends for 50 years, commencing February 11, 2015 provided that we are not in default or do not materially breach the Intellectual Property License by engaging in any activity which damages the Marks or the goodwill of the System. In the event the Intellectual Property License is terminated, H2O has agreed to negotiate a license with our licensees to use the "BIG AIR TRAMPOLINE PARK and LOGO" Marks and the System on substantially the same terms as the terms in our Intellectual Property License.
Source: Item 13 — TRADEMARKS (FDD pages 36–38)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, H2O, the owner of the "BIG AIR TRAMPOLINE PARK and LOGO" marks and the System, has granted Big Air Trampoline Park a non-exclusive Intellectual Property License to use its intellectual property for franchising purposes worldwide. This license is critical because it allows Big Air Trampoline Park to sub-license the trademarks and system to its franchisees. Without this license, Big Air Trampoline Park would not be able to grant franchisees the right to operate under the Big Air Trampoline Park brand.
The Intellectual Property License extends for a term of 50 years, commencing on February 11, 2015. However, this duration is contingent upon Big Air Trampoline Park remaining in compliance with the terms of the license. Specifically, Big Air Trampoline Park must not be in default or materially breach the Intellectual Property License by engaging in activities that could damage the marks or the goodwill of the System. This condition highlights the importance of Big Air Trampoline Park adhering to the standards and guidelines set forth by H2O to maintain the integrity of the brand and the value of the trademarks.
In the event that the Intellectual Property License between H2O and Big Air Trampoline Park is terminated, H2O has agreed to negotiate a license directly with Big Air Trampoline Park's franchisees. This agreement would allow franchisees to continue using the "BIG AIR TRAMPOLINE PARK and LOGO" Marks and the System under substantially the same terms as the original Intellectual Property License. This provision offers a degree of security for franchisees, as it provides a potential pathway for them to continue operating their businesses even if the overarching agreement between Big Air Trampoline Park and H2O were to dissolve. This type of arrangement is not always standard in franchising, so it represents a potentially significant benefit for Big Air Trampoline Park franchisees.