Does the non-compete apply to company-owned Big Air Trampoline Park facilities?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.2 Multi-Unit Developer covenants that, except as otherwise approved in writing by Franchisor, Multi-Unit Developer shall not, for a continuous uninterrupted period commencing upon the expiration or termination of this Agreement, regardless of the cause for termination, and continuing for two years thereafter, either directly or indirectly, for itself or through, on behalf of or in conjunction with any person, persons, partnership or corporation, own, maintain, engage in, be employed by, advise, assist, invest in, franchise, make loans to, or have any interest in any business which is the same as or substantially similar to the Big Air Trampoline Facility and which is located within a radius of 100 miles of the Development Territory hereunder or within a radius of a 100 miles of the location of any Multi-Unit Developer, company-owned Big Air Trampoline Facility, affiliate owned Big Air Trampoline Facility, or franchisee-owned Big Air Trampoline Facility under the System which is in existence on the date of expiration or termination of this Agreement.
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 non-compete agreement does apply to company-owned Big Air Trampoline Park facilities. Specifically, the Multi-Unit Developer agrees not to engage in any business substantially similar to a Big Air Trampoline Park within a 100-mile radius of any company-owned Big Air Trampoline Park facility. This restriction is in place for a period of two years following the expiration or termination of the Multi-Unit Developer Agreement.
This non-compete obligation extends not only to company-owned facilities but also to affiliate-owned and franchisee-owned Big Air Trampoline Park locations. This comprehensive restriction aims to protect the brand and prevent unfair competition within the Big Air Trampoline Park system. The agreement specifies that the Multi-Unit Developer cannot own, maintain, be employed by, advise, assist, invest in, franchise, make loans to, or have any interest in a similar business within the defined radius.
For a prospective franchisee, this means that upon leaving the Big Air Trampoline Park system, they are restricted from operating or being involved with a competing trampoline park business within 100 miles of their former location, as well as any other Big Air Trampoline Park location (company-owned, affiliate-owned, or franchisee-owned). This is a significant restriction that could limit their future business opportunities in the same industry. It is important to note that this restriction does not apply to ownership of less than 5% of a publicly-held corporation's equity securities, provided the Multi-Unit Developer has no management or advisory responsibilities with that company.
It is also important to note that Big Air Franchising, LLC reserves the right to establish, operate, or license Big Air Trampoline Park facilities at any location outside the Development Territory. They can also develop, lease, and license trademarks other than the Marks for similar or different services. Furthermore, they can merge with or be acquired by any other business, including competitors, and implement multi-area marketing programs. These rights retained by the franchisor could potentially impact the franchisee's business, especially if the franchisor decides to operate a competing business nearby or implement marketing programs that affect the franchisee's customer base.