Where are the non-competition covenants after termination or expiration of the Big Air Trampoline Park franchise detailed?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Multi Unit Development Agreement | Summary | |
|---|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | Section 11.2 | No competing business for two years within 100-mile radius of the Development Territory or within 100-mile radius of any Big Air Trampoline Facility owned by a franchisee, Franchisor, our Affiliates or Multi-Unit Developer, subject to state law. | |
| Provision | Agreement | Summary | |
| ---- | --------------------------------------------------------------------------------- | ------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| r. | Non-competition covenants after the franchise is terminated or expires | Sections 14, 17 | No competing business for 2 years (i) in the Territory or any other Franchisee's Territory; (ii) within 100 miles of the Territory or any other Franchisee's Territory or (iii) within 100 miles of any of our Affiliate owned Big Air Trampoline Business, subject to state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 41–46)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, the non-competition covenants that apply after the franchise is terminated or expires are detailed in Section 11.2 of the Multi-Unit Development Agreement and Sections 14 and 17 of the Franchise Agreement.
Specifically, the Multi-Unit Development Agreement states that for two years after termination or expiration, a franchisee cannot be involved in a competing business within a 100-mile radius of the Development Territory or any Big Air Trampoline Park facility owned by a franchisee, the franchisor, its affiliates, or a Multi-Unit Developer. This is subject to state law.
The Franchise Agreement stipulates that for a period of two years after termination or expiration, a franchisee is prohibited from engaging in any competing business (i) within the Territory or any other Franchisee's Territory; (ii) within 100 miles of the Territory or any other Franchisee's Territory or (iii) within 100 miles of any of Big Air Trampoline Park's Affiliate owned Big Air Trampoline Business, subject to state law.
These non-compete clauses are typical in franchising to protect the brand and other franchisees. A prospective franchisee should carefully review Sections 11.2, 14, and 17 of the agreements and any applicable state laws with their legal counsel to fully understand the restrictions and their implications.