Is a Big Air Trampoline Park franchisee subject to competition from other franchisees or company-owned outlets?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
ERRITORY**
Single Unit Franchise Agreement
You will be granted the right to operate your Big Air Trampoline Business from a location we have approved. You will be granted a territory ("Territory") in which to market and advertise your Big Air Trampoline Business and to sell the Products and Services you are authorized to sell by the Franchise Agreement. Your Territory will be based on demographics and other characteristics including population density, average household income and other characteristics of the surrounding area, natural boundaries, extent of competition and the amount and size of urban, suburban and rural areas. We will use commercially reasonable efforts to grant only one license to a franchisee per 200,000 people (or incremental portion thereof) in the designated geographical location ("Population Limit"). We will use the most recent population information reasonably available in the U.S. Census Data, or other population statistical sources of our choosing to determine populations. In most cases, your Territory will not exceed a radius of 15 miles from the front door of your Big Air Trampoline Facility. In certain densely populated metropolitan areas, this radius may be considerably smaller, while Franchisees operating in more rural areas may have a significantly larger radius surrounding their Big Air Trampoline Facilities. We have the exclusive right to determine the boundaries of your Territory at our sole discretion. Once the radius is determined, you will be assigned the zip codes that lie in whole or in part within the radius we have granted to you for marketing purposes. We reserve the right to change, modify, or delete the Population Limit at our sole discretion. Your Franchise Agreement allows you to operate from 1 location, as approved by us. If you wish to relocate your business site, the proposed new site must meet the then-current site selection criteria and be approved by us. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
You may be granted, at our sole discretion, express permission to promote and advertise your Big Air Trampoline Facility to customers in an unsold territory adjacent to your Territory ("Adjacent Territory"). However, you must agree that when this Adjacent Territory is granted to another franchisee, you will, upon receipt of written notice from us, cease all promotional and advertising efforts within the Adjacent Territory, and return to us, within 10 days of the notice, all customer data and prospect information related to the Adjacent Territory. You do not have any rights of first refusal on the Adjacent Territory.
Customers from your Territory may purchase Services and Products from us and our Affiliates or designees over the Internet, or in other reserved channels of distribution. If you advertise or market your Big Air Trampoline Business outside of your Territory, unless otherwise approved by us, you will be in breach of your Franchise Agreement, and we would have the right to terminate your Franchise.
You do not need to satisfy any sales quota or market penetration to maintain your rights to your Territory. You will not receive rights of first refusal to acquire additional franchises within your area. You will maintain rights to your Territory even though the population in the Territory may increase or decrease, and once your Territory is established, we cannot change or modify it under any circumstances. You will not be entitled to any additional zip codes or an expansion of your geographic boundaries if the population decreases or the demographic make-up changes in your Territory. There are no other restrictions on us regarding granting franchised outlets for similar or competitive business within a defined territory.
We reserve the right, among others, to own, franchise, license or use the Marks and System to operate Big Air Trampoline Businesses at any location outside of the Territory, regardless of the proximity to your Big Air Trampoline Business.
Source: Item 12 — TERRITORY (FDD pages 34–36)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, franchisees may face competition from various sources. For single-unit franchisees, while the franchisor will not establish another franchisee or company-owned outlet within their Territory that uses the franchisor's trademarks, service marks, or Marks, franchisees may still face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. The franchisor aims to grant only one license per 200,000 people in a designated area but reserves the right to change this Population Limit.
For multi-unit franchisees with a Development Territory, during the term of the Multi-Unit Development Agreement, Big Air Trampoline Park will not establish its own or grant others the right to establish Big Air Trampoline Businesses within the Development Territory. However, the franchisor retains the right to sell Products and Services through any other channels of distribution. If a multi-unit franchisee fails to meet the development schedule, Big Air Trampoline Park may terminate the agreement, reduce territorial protections, or reduce the Development Territory size.
In summary, while some territorial protections exist, Big Air Trampoline Park franchisees should anticipate potential competition from other franchisees, company-owned outlets, alternative distribution channels, and competitive brands, impacting their business operations and market share.