What is the meaning of 'state of' in the context of the Big Air Trampoline Park document?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
hises:
Exhibit:
- B. Franchise Agreement
- C. Multi-Unit Development Agreement
- F. State-Specific Addendum
- H. Non-Disclosure and Non-Competition Agreement
EXHIBIT F
TO FRANCHISE DISCLOSURE DOCUMENT OF BIG AIR FRANCHISING, LLC
STATE-SPECIFIC ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT, FRANCHISE AGREEMENT, AND MULTI-UNIT DEVELOPMENT AGREEMENT
The provisions of this State Law Addendum to Franchise Disclosure Document and Franchise Agreement ("State Addendum") apply only to those persons residing or operating Big Air Trampoline Businesses in the following states:
CALIFORNIA
Item 1 of the Franchise Disclosure Document is revised to include the following under Regulations:
Because you collect information from customers, it may contain personal information of individuals which is protected by law. You are also responsible for complying with all applicable current and future federal, state and local laws, regulations and requirements, including the California Consumer Privacy Act (as applicable), pertaining to the collection, protection, use, sale, disposal, and maintenance of such personal information. Personal information includes information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer, potential consumer, individual or household, as such term may be further defined or amended by applicable federal, state, and local laws, regulations and requirements. You may also be required to comply with opt-in requirements on your website.
Item 5 of the Franchise Disclosure Document, Section 5.1 of the Franchise Agreement and Section 3.2 of the Multi-Unit Development Agreement are revised to include the following:
The Department has determined that we, the franchisor, have not demonstrated we are adequately capitalized and/or that we must rely on franchise fees to fund our operations. The Commissioner has imposed a requirement for us to maintain surety bonds under California Corporations Code section 31113 and 10 C.C.R. section 310.11.5 which must remain in effect during our registration period. Big Air Franchising, LLC has two surety bonds in California. The first surety bond is in the amount of $60,000.00 with Atlantic Specialty Insurance Company. The second surety bond is in the amount of $240,000 with Travelers Casualty and Surety Company of America. The bonds are available for you to recover your damages in the event we do not fulfill our obligations to you to open your franchised business. We will provide you with a copy of the surety bonds upon request.
Item 17 of the FDD is revised to include the following:
"THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE FRANCHISE DISCLOSURE DOCUMENT."
Neither the Franchisor, any person or franchise broker in Item 2 of the FDD is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C. A. 78a et seq., suspending or expelling the persons from membership in the association or exchange.
The franchise agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C.A. Sec. 101 et seq.).
California Business and Professions Code Sections 20000 through 20043 provide rights to you concerning termination, transfer or non-renewal of a franchise. If the franchise agreement contains a provision that is inconsistent with the law, the law will control.
The franchise agreement contains a covenant not to compete which, in the case of the franchise agreement, extends beyond the termination of the franchise. This provision may not be enforceable under California law.
The franchise agreement requires binding arbitration. This arbitration will occur in Ladera Ranch, California with the costs being born by the losing party. Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provision of a franchise agreement restricting venue to a forum outside the State of California.
The franchise agreement requires you to sign a general release of claims if you transfer your franchise or your multi-unit development agreement. California corporations code §31512 voids a waiver of your rights under the franchise investment law (California corporations code §§31000 through 31516). The business and professions code §20010 voids a waiver of your rights under the franchise relations act (business and professions code §§20000 through 20043).
Section 31125 of the California Franchise Investment Law requires us to give to you a disclosure document approved by the Commissioner of Financial Protection and Innovation before we ask you to consider a material modification of the franchise agreement.
Our website has not been reviewed or approved by the California Department of Financial Protection and Innovation Any complaints concerning the content of this website may be directed to the California Department of Financial Protection and Innovation at www.dfpi.ca.gov.
The disclosure document, franchise agreement, multi-unit development agreement and any document signed in connection with the franchise are supplemented with the following language:
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement by any franchisor, franchise seller, or other person acting on behalf of franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
The franchise agreement is hereby amended to delete Sections 1.1, 1.2, 1.8, and 22 as the provisions violate California Corporations Code Section 31512.
The multi-unit development agreement is hereby amended to delete the seventh recital paragraph and Sections 19 and 23 as the provisions violate California Corporations Code Section 31512.
In the state of California, the highest interest rate permitted by law is ten percent (10%).
Exhibit I – Statement of Franchisee is hereby deleted in its entirety, as it violates California Corporations Code Sections 31512 and 31512.1.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Big Air Trampoline Park Franchise Disclosure Document, the term "state of" has multiple contexts. One refers to the governmental jurisdiction where Big Air Trampoline Park franchises operate, and another refers to the state where the surety company is incorporated. For example, addenda to the franchise agreement address specific state laws, and bonds are issued to specific states for the benefit of interested parties.
In the context of state-specific addenda, certain provisions of the Franchise Agreement and Multi-Unit Development Agreement may be modified or deemed unenforceable based on the laws of the state where the franchisee is located. These addenda acknowledge that the franchisee is subject to the protections of the state laws referenced in the addendum. For instance, the FDD mentions specific revisions for franchisees operating in California, Michigan, Rhode Island, Hawaii, Minnesota, South Dakota, Illinois, New York, Virginia, Indiana, North Dakota, Washington, Maryland, Ohio, and Wisconsin.
In the context of surety bonds, "state of" refers to the state under whose laws the surety company is created and operates. For example, Atlantic Specialty Insurance Company is described as a corporation organized under the laws of the State of New York. Similarly, Travelers Casualty and Surety Company of America is mentioned as doing business in the State of Washington and incorporated under the laws of the State of Connecticut. These bonds are held to protect the named principal of said bond under the provisions of the Law entitled to the state of California.
Prospective franchisees should pay close attention to any state-specific addenda that apply to their location, as these can significantly impact their rights and obligations under the Franchise Agreement. They should also understand the role of surety bonds and the states involved, as these provide financial protection in case of non-compliance or other issues.