What is the payment limit for the bond related to Big Air Trampoline Park?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
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Item 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
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 FDD, Big Air Trampoline Park is required to maintain surety bonds in California due to the Department's determination that the franchisor may not be adequately capitalized or may rely on franchise fees to fund operations. Big Air Franchising, LLC has two surety bonds in California. One bond is for $60,000 with Atlantic Specialty Insurance Company, and the other is for $240,000 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.
For a prospective franchisee, this means that there is a financial safety net in place should Big Air Trampoline Park not meet its obligations to help the franchisee launch their business. The total potential recovery from these bonds is $300,000.00. This offers some financial protection, although it's important to understand the specific conditions under which a claim can be made and the process for doing so.
It is typical for franchise systems to have some form of financial assurance, especially when entering new markets or when there are concerns about the franchisor's financial stability. The presence of these bonds may provide a level of comfort to potential franchisees, but it is crucial to review the terms of the bonds and understand the circumstances under which they can be claimed. Prospective franchisees should request copies of the surety bonds to fully understand their protections and limitations.