What happens if a Big Air Trampoline Park franchisee becomes insolvent?

According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, if a franchisee becomes insolvent or is adjudicated bankrupt, or if any action is taken by the franchisee or others against the franchisee under any insolvency, bankruptcy, or reorganization act, or if the franchisee makes an assignment for the benefit of creditors, or a receiver is appointed for the franchisee, Big Air Franchising, LLC has the right to terminate the Franchise Agreement. This termination is effective upon the franchisee's receipt of notice from Big Air Trampoline Park.

This means that if a Big Air Trampoline Park franchisee faces severe financial difficulties leading to insolvency or bankruptcy, the franchisor has the right to terminate the franchise agreement. This could result in the franchisee losing the right to operate the Big Air Trampoline Park business. The franchisee would need to cease operations and relinquish all rights associated with the franchise.

This clause protects Big Air Trampoline Park by allowing them to disassociate from a franchisee experiencing significant financial distress. It ensures that the brand's reputation and the overall network's stability are not negatively impacted by the financial instability of one franchisee. Prospective franchisees should be aware of this clause and carefully consider their financial planning and risk management strategies to avoid such a situation.