Is a Big Air Trampoline Park franchisee allowed to own stock in a competing company?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
f confidence at the time it was communicated to Franchisee; or (c) the disclosure of the Confidential Information in judicial or administrative proceedings to the extent that Franchisee is legally compelled to disclose the information, if Franchisee has notified Franchisor before disclosure and used Franchisee's best efforts, and afforded Franchisor the opportunity, to obtain an appropriate protective order or other assurance satisfactory to Franchisor of confidential treatment for the information required to be so disclosed.
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 Big Air Trampoline Park's 2025 Franchise Disclosure Document, during the term of the franchise agreement, a franchisee, along with their owners, designated business managers, officers, directors, managers, members, and partners, cannot engage in or be interested in any business operating in competition with Big Air Trampoline Park without prior written consent from the franchisor. This restriction applies whether the involvement is direct or indirect, including being a shareholder, member, or partner in a competing business.
Upon termination or expiration of the franchise agreement, or the transfer, sale, or assignment of the agreement by the franchisee, the franchisee, designated business manager, and their owners, officers, directors, managers, members, or partners are restricted from having any direct or indirect interest in a Competitive Business for two years. This restriction applies within the territory, within 100 miles of the territory, or within 100 miles of any Big Air Trampoline Park owned by the franchisor or an affiliate.
However, these restrictions do not apply to the Multi-Unit Developer's ownership of less than a 5% beneficial interest in the outstanding equity securities of any publicly-held corporation, provided that the Multi-Unit Developer has no management or advisory responsibility with such publicly traded company. This exception allows for minor investments in publicly traded companies that may have some competitive overlap, without triggering the non-compete clauses, as long as the franchisee is not involved in the management or advising of the company.