Can the Franchisor reduce the scope of the non-compete covenant for Big Air Trampoline Park?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
If any or all portions of the covenants in this Section 11 are held unreasonable or unenforceable by a court or agency having valid jurisdiction in an unappealed final decision to which Franchisor is a party, Multi-Unit Developer expressly agrees to be bound by any lesser covenant subsumed within the terms of this covenant that imposes the maximum duty permitted by law, as if the resulting covenant were separately stated in and made a part of this Section 11.
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 has the ability to modify the non-compete agreement. Specifically, if a court finds any part of the non-compete to be unreasonable or unenforceable, the franchisee agrees to be bound by a lesser covenant that imposes the maximum duty permitted by law. This means that the franchisor can enforce a narrower restriction if the original one is deemed too broad. This applies to the Multi-Unit Developer.
This clause ensures that Big Air Trampoline Park can still protect its interests to the fullest extent legally possible, even if the initial non-compete terms are challenged. It provides flexibility in enforcing the non-compete agreement, adapting to potential legal limitations. The non-compete agreement lasts for a period of two years after the expiration or termination of the agreement and extends 100 miles from the Development Territory.
For a prospective franchisee, this means that the non-compete obligations could be adjusted based on legal rulings. It is important to understand the specific terms of the non-compete and how they might be interpreted or modified in your jurisdiction. Franchisees should seek legal counsel to fully understand the implications of this clause and the potential scope of their non-compete obligations.