Can the franchisor merge with a business that competes with Big Air Trampoline Park facilities?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor also reserves the right to (a) establish, operate or license to any other person or entity the right to establish or operate a Big Air Trampoline Facility owned or licensed by Franchisor at any location outside the Development Territory; (b) develop, lease and license the use of, at any location side or outside of the Development Territory, trademarks other than the Marks, in connection with the operation of a system which offers products or services which are similar to or different from those offered under the System, on any terms or conditions which Franchisor deems advisable; (c) merge with, or be acquired by any other business, including a business that competes with Big Air Trampoline Facilities operated by Multi-Unit Developer, or to acquire and convert to the System operated by Franchisor any business offering an indoor trampoline recreation and party center featuring trampolines, foam pits, rock climbing walls and other elements and the sale of related products operated by competitors, located inside or outside of the Development Territory or otherwise operated independently as part of, or in association with, any other system or chain, whether franchised or corporately owned; and (d) implement multi-area marketing programs which may allow Franchisor or others to solicit or sell to customers anywhere, and to issue mandatory policies to coordinate these multi-area marketing programs.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, the franchisor reserves the right to merge with or be acquired by any other business, including one that competes with Big Air Trampoline Park facilities operated by a Multi-Unit Developer. This includes the ability to acquire and convert businesses offering similar indoor recreation activities, such as trampoline parks, foam pits, and rock climbing walls, regardless of whether these businesses are inside or outside the Development Territory. This also applies to businesses operated independently or as part of another system or chain, whether franchised or corporately owned.
This clause has significant implications for prospective franchisees. Big Air Trampoline Park retains considerable flexibility in its business operations and future direction. The franchisor could potentially merge with a direct competitor, which might alter the competitive landscape for existing franchisees.
While this clause provides the franchisor with strategic options, it also introduces a level of uncertainty for franchisees. Franchisees should carefully consider the potential impact of such a merger or acquisition on their business and seek clarification from Big Air Trampoline Park regarding its long-term plans and commitment to supporting its franchisees in the event of a merger or acquisition.