What obligations of Big Air Trampoline Park under the franchise contract are covered by the bond?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
tem 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 s
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Big Air Trampoline Park Franchise Disclosure Document, the surety bonds are related to the franchisor's obligations to open the franchised business in California. Because Big Air Trampoline Park has not demonstrated adequate capitalization, California requires them 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 their registration period.
Big Air Trampoline Park has two surety bonds in California. One is a $60,000 bond with Atlantic Specialty Insurance Company, and the other is a $240,000 bond with Travelers Casualty and Surety Company of America. These bonds are available for franchisees to recover damages if Big Air Trampoline Park fails to fulfill its obligations to open the franchised business.
The bond specifically covers the franchisor's obligations under the franchise contract to provide real estate, improvements, equipment, inventory, training, and other items included in the franchise offering. If Big Air Trampoline Park fails to meet these obligations, a franchisee can make a claim against the bond to recover damages. Franchisees can request a copy of the surety bonds from Big Air Trampoline Park to understand the specific terms and conditions of the bonds.