For a Big Air Trampoline Park franchise, what law governs the Multi-Unit Development Agreement?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
| w. Choice of law | Section 18 | | California law applies, except as provided in a State Specific Addendum, subject to applicable state law. | | 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. | | 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.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–49)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, the Multi-Unit Development Agreement is generally governed by California law. However, this is subject to exceptions as provided in a State Specific Addendum, and also subject to applicable state law. This means that while California law forms the basis of the agreement, specific provisions might be altered or superseded by the laws of the state in which the franchisee operates, as detailed in a state-specific addendum.
Several sections of the Multi-Unit Development Agreement are explicitly noted as being subject to state law. For instance, non-competition covenants after the franchise is terminated or expires are subject to state law. Similarly, the integration/merger clause, which dictates that only the terms of the Multi-Unit Development Agreement are binding, is also subject to applicable state laws. Dispute resolution through arbitration or mediation, including the choice of forum for arbitration, is also subject to state law, potentially modifying the standard requirement for arbitration in California.
This approach allows Big Air Trampoline Park to maintain a standardized agreement while accommodating the legal requirements of different states. Prospective franchisees should carefully review any State Specific Addendum to understand how local laws may affect the terms of their Multi-Unit Development Agreement. It is crucial to consult with a legal professional to fully understand the implications of these state-specific modifications and how they might impact the franchisee's rights and obligations.