What obligations does a Big Air Trampoline Park franchisee have regarding confidentiality and non-competition upon termination or non-renewal of the agreement?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Agreement | Summary | |
|---|---|---|---|
| q. | Non-competition covenants during the term of franchise | Section 14 | No involvement in competing business anywhere in US, subject to state law. |
| 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 the 2025 Big Air Trampoline Park Franchise Disclosure Document, a franchisee has obligations regarding confidentiality and non-competition both during the term of the franchise agreement and after termination or non-renewal. During the franchise term, franchisees cannot be involved in any competing business anywhere in the U.S., subject to state law, as detailed in Section 14 of the Franchise Agreement. This means a franchisee must completely avoid any business ventures that could be seen as competitive with Big Air Trampoline Park while the agreement is active.
Post-termination or non-renewal, the franchisee is restricted from engaging in any competing business for two years. This restriction applies (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 obligations are found in Sections 14 and 17 of the Franchise Agreement. The geographic scope of these restrictions is significant, potentially limiting business opportunities in a wide area around existing Big Air Trampoline Park locations.
These non-compete and confidentiality obligations are typical in franchising to protect the brand's market share, trade secrets, and customer relationships. Prospective franchisees should carefully review Sections 10, 11, 14, and 17 of the Franchise Agreement to fully understand the scope and limitations of these obligations, as well as how state laws might affect their enforceability. It is also important to seek legal counsel to assess the implications of these restrictions on future business activities after the franchise agreement ends.