Can a Big Air Trampoline Park franchisee pledge their assets without approval?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
ithout Franchisee's consent and, provided the transferee expressly assumes and undertakes to perform Franchisor's obligations in all material respects, do so free of any responsibility or liability whatsoever to Franchisee after the transaction occurs.
- 15.3 With regard to any of the above sales, assignment and dispositions, Franchisee expressly and specifically waives any claims, demands, or damages against Franchisor arising from or related to the transfer of the Marks, assets or the System from Franchisor to any other party.
- 15.4 Franchisee understands and acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee. Accordingly, this Agreement, Franchisee's rights and interests hereunder, the property and assets owned and used by Franchisee in connection with the Big Air Trampoline Business, and any shares, stock, membership or interest in any corporation, limited liability company, or other entity having an interest in the Big Air Trampoline Business, shall not be voluntarily or involuntarily, directly or indirectly sold, pledged, assigned, transferred, shared, subdivided, subfranchised, encumbered or transferred in any way (including, without limitation, in the event of the death of Franchisee if Franchisee is an individual), in whole or in part, in any manner whatsoever without the prior written approval of Franchisor, which approval will not be unreasonably withheld or delayed, and
compliance with all terms of this Section 15. Any unauthorized sale, assignment, transfer or other conveyance, by operation of law or otherwise, or any attempt to do so, shall be deemed void and grounds for termination of this Agreement by Franchisor.
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 ability to pledge their assets is restricted. Specifically, a franchisee cannot pledge assets related to their Big Air Trampoline Business without first obtaining written approval from Big Air Trampoline Park.
However, there is an exception. The franchisee can grant a security interest in the assets if the secured party agrees that Big Air Trampoline Park has the right to step in as the obligor and cure any default by the franchisee. In this scenario, any acceleration of debt due to the franchisee's default would be voided.
This requirement protects Big Air Trampoline Park by ensuring that the franchisee's financial dealings do not jeopardize the brand or the operation of the franchise. By maintaining control over asset pledges, Big Air Trampoline Park can safeguard its interests and ensure the stability of its franchise network. This is a fairly common stipulation in franchise agreements, as franchisors want to prevent franchisees from taking on excessive debt that could lead to business failure and damage the brand's reputation.