Does the non-compete apply to franchisee-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.
11.3 Sections 11.1 and 11.2 shall not apply to ownership by Multi-Unit Developer of less than a 5% beneficial interest in the outstanding equity securities of any publicly-held corporation provided that Multi-Unit Developer has no management responsibility or advisory responsibility with such publiclytraded company.
11.4 The parties agree that each of the foregoing covenants shall be construed as independent of any other covenant or provision of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to the 2025 Big Air Trampoline Park FDD, the non-compete agreement does apply to franchisee-owned Big Air Trampoline Park facilities. Specifically, after the termination or expiration of the Multi-Unit Developer Agreement, the developer is restricted from engaging in any business that is the same as or substantially similar to a Big Air Trampoline Facility.
This restriction extends to owning, maintaining, being employed by, advising, assisting, investing in, franchising, making loans to, or having any interest in such a business. The restricted area includes a 100-mile radius around the Development Territory, as well as a 100-mile radius around any Multi-Unit Developer, company-owned, affiliate-owned, or franchisee-owned Big Air Trampoline Park facility that existed under the System on the date of termination or expiration of the agreement. This non-compete period lasts for two years following the termination or expiration of the agreement.
However, there is an exception: the Multi-Unit Developer can own less than a 5% beneficial interest in the equity securities of a publicly-held corporation, provided they have no management or advisory responsibilities with that company. The FDD also states that each covenant within this section is independent of any other covenant or provision within the agreement. If any part of these covenants is deemed unreasonable or unenforceable by a court, the Multi-Unit Developer agrees to be bound by a lesser covenant that imposes the maximum duty permitted by law.