What is the duration of the post-termination non-compete covenant for a Big Air Trampoline Park franchisee?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Upon termination or expiration of the Term or any Successor Term, or the transfer, sale or assignment of this Agreement by Franchisee, neither Franchisee, the Designated Business Manager nor Franchisee's owners, officers, directors, managers, members, or partners will have any direct or indirect interest (i.e. through a relative) as a disclosed or beneficial owner, investor, partner, director, officer, employee, consultant, representative or agent, for two years, in any Competitive Business in: (1) the Territory or any other franchisee's territory; (2) within 100 miles of the Territory or any other franchisee's territory; or (3) within 100 miles of any Franchisor or Affiliate-owned Big Air Trampoline Business.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to the 2025 FDD, Big Air Trampoline Park franchisees are subject to a post-termination non-compete covenant lasting for two years. This restriction applies if the franchise agreement is terminated or expires, or if the franchisee transfers, sells, or assigns the agreement. During this two-year period, the franchisee, designated business manager, and their owners, officers, directors, managers, members, or partners are prohibited from having any direct or indirect interest in a Competitive Business.
The non-compete restrictions apply within specific geographic areas: the franchisee's territory, any other franchisee's territory, or within 100 miles of these territories. It also extends to within 100 miles of any Big Air Trampoline Park location owned by the franchisor, its affiliates, or other franchisees. This broad geographic scope means a former franchisee could be significantly limited in their ability to operate or be involved with a similar business after leaving the Big Air Trampoline Park system.
This type of non-compete agreement is common in franchising to protect the brand and business model. However, the specific terms can vary widely. Prospective Big Air Trampoline Park franchisees should carefully consider the implications of this two-year restriction and the 100-mile radius, especially if they plan to remain in the same geographic area after the franchise agreement ends. It is important to understand how these restrictions could impact future business opportunities.