What is the effect of a flood on the abandonment clause for a Big Air Trampoline Park franchise?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Franchisee voluntarily abandons the Big Air Trampoline Business for a period of five consecutive days, or any shorter period that indicates an intent by Franchisee to discontinue
operation of the Big Air Trampoline Business, unless such abandonment is due to fire, flood, earthquake or other similar causes beyond Franchisee's control and not related to the availability of funds to Franchisee;
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, a franchisee's voluntary abandonment of the business for a period of five consecutive days, or any shorter period that indicates an intent to discontinue operation, can be grounds for termination of the franchise agreement. However, this abandonment clause has an exception.
The FDD states that if the abandonment is due to a fire, flood, earthquake, or other similar causes beyond the franchisee's control and not related to the availability of funds, it does not constitute grounds for termination. This means that if a Big Air Trampoline Park location is forced to close temporarily due to a flood, the franchisor cannot terminate the franchise agreement based solely on that closure, provided the flood was beyond the franchisee's control and the closure wasn't due to lack of funds.
This clause protects franchisees from losing their franchise due to circumstances outside their control. However, it's important to note that the exception is conditional. The flood must be beyond the franchisee's control and not related to financial issues. If the closure is due to a lack of insurance coverage or insufficient funds to repair the damage caused by the flood, the franchisor may still have grounds for termination under other provisions of the franchise agreement.