How does the Big Air Trampoline Park franchise agreement define a "Competitive Business"?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
14.2 Franchisee covenants and agrees that:
(a) During the Term of this Agreement and any Successor Terms thereof, Franchisee, its owners, Designated Business Managers, officers, directors, managers, members, and partners shall not, without the prior written consent of Franchisor, either individually or in a partnership, corporation, limited liability company, joint venture or other business entity or jointly or in conjunction with any person, firm, association, syndicate or corporation, as principal, agent, shareholder, member, partner or in any manner whatsoever, carry on or be engaged in or be concerned with or interested in or advise, lend money to, guarantee the debts or obligations of or permit its name or any part thereof to be used or employed in any business operating in competition with any business operating indoor trampoline recreation and party centers featuring trampolines, foam pits, rock climbing walls and other elements and the sale of related Products, or any business similar to the Big Air Trampoline Business ("Competitive Business") as carried on from time to time during the Term of this Agreement, including any Successor Term.
(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 Big Air Trampoline Park Franchise Disclosure Document, a "Competitive Business" is defined within the context of franchisee covenants. During the term of the agreement, franchisees, their owners, designated business managers, officers, directors, managers, members, and partners are prohibited from engaging in any business that competes with indoor trampoline recreation and party centers. This includes businesses featuring trampolines, foam pits, rock climbing walls, and the sale of related products, or any business similar to the Big Air Trampoline Park business. This restriction applies unless the franchisee obtains prior written consent from Big Air Trampoline Park.
Post-termination or expiration of the franchise agreement, the restrictions extend for two years. During this period, franchisees and related parties are barred from having any direct or indirect interest in a Competitive Business within the Territory, any other franchisee's territory, or within 100 miles of these territories. The restriction also applies within 100 miles of any Big Air Trampoline Park owned by the franchisor or its affiliates. This encompasses various forms of interest, including ownership, investment, partnership, or acting as a director, officer, employee, consultant, representative, or agent.
This non-compete clause is a standard element in franchise agreements, designed to protect the franchisor's brand and market position. Prospective Big Air Trampoline Park franchisees should carefully consider the implications of these restrictions, particularly the geographic scope and duration, as they could impact future business opportunities after leaving the franchise system. It is advisable to seek legal counsel to fully understand the terms and potential limitations imposed by the non-compete agreement.