Does the franchisee's consent matter if Big Air Trampoline Park sells its assets?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that Franchisor may sell its assets, the Marks or the System to any third party of Franchisor's choice; may offer its securities privately or publicly; may merge with or acquire other business entities or be acquired by another business entity; may permit and participate in any transfer or distribution of its securities in connection with a spin-off; may undertake a refinancing, recapitalization, leveraged buyout, or other economic or financial restructuring; or may terminate or cease to exist or dissolve, in any such case without 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.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, franchisee consent is not required if Big Air Trampoline Park decides to sell its assets, the Marks, or the System to a third party. Big Air Trampoline Park has the right to sell its assets, offer securities, merge with or acquire other entities, participate in security transfers, or undergo financial restructuring without the franchisee's consent.
This lack of required consent extends to various scenarios, including selling assets, the Marks, or the System to any third party of Big Air Trampoline Park's choosing. The document stipulates that as long as the transferee expressly assumes and undertakes to perform Big Air Trampoline Park's obligations in all material respects, Big Air Trampoline Park is free from any responsibility or liability to the franchisee after the transaction.
Furthermore, the franchisee waives any claims, demands, or damages against Big Air Trampoline Park arising from or related to the transfer of the Marks, assets, or the System to another party. This waiver underscores the franchisor's broad authority in these transactions and limits the franchisee's recourse in the event of a sale or transfer. This is a common clause in franchise agreements, but franchisees should carefully consider the implications before signing.