What is the purpose of including the description of the attached document in the Big Air Trampoline Park FDD?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
hises:
Exhibit:
- B. Franchise Agreement
- C. Multi-Unit Development Agreement
- F. State-Specific Addendum
- H. Non-Disclosure and Non-Competition Agreement
EXHIBIT F
TO FRANCHISE DISCLOSURE DOCUMENT OF BIG AIR FRANCHISING, LLC
STATE-SPECIFIC ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT, FRANCHISE AGREEMENT, AND MULTI-UNIT DEVELOPMENT AGREEMENT
The provisions of this State Law Addendum to Franchise Disclosure Document and Franchise Agreement ("State Addendum") apply only to those persons residing or operating Big Air Trampoline Businesses in the following states:
CALIFORNIA
Item 1 of the Franchise Disclosure Document is revised to include the following under Regulations:
Because you collect information from customers, it may contain personal information of individuals which is protected by law. You are also responsible for complying with all applicable current and future federal, state and local laws, regulations and requirements, including the California Consumer Privacy Act (as applicable), pertaining to the collection, protection, use, sale, disposal, and maintenance of such personal information. Personal information includes information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer, potential consumer, individual or household, as such term may be further defined or amended by applicable federal, state, and local laws, regulations and requirements. You may also be required to comply with opt-in requirements on your website.
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 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 securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C. A. 78a et seq., suspending or expelling the persons from membership in the association or exchange.
The franchise agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C.A. Sec. 101 et seq.).
California Business and Professions Code Sections 20000 through 20043 provide rights to you concerning termination, transfer or non-renewal of a franchise. If the franchise agreement contains a provision that is inconsistent with the law, the law will control.
The franchise agreement contains a covenant not to compete which, in the case of the franchise agreement, extends beyond the termination of the franchise. This provision may not be enforceable under California law.
The franchise agreement requires binding arbitration. This arbitration will occur in Ladera Ranch, California with the costs being born by the losing party. Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provision of a franchise agreement restricting venue to a forum outside the State of California.
The franchise agreement requires you to sign a general release of claims if you transfer your franchise or your multi-unit development agreement. California corporations code §31512 voids a waiver of your rights under the franchise investment law (California corporations code §§31000 through 31516). The business and professions code §20010 voids a waiver of your rights under the franchise relations act (business and professions code §§20000 through 20043).
Section 31125 of the California Franchise Investment Law requires us to give to you a disclosure document approved by the Commissioner of Financial Protection and Innovation before we ask you to consider a material modification of the franchise agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Big Air Trampoline Park Franchise Disclosure Document, the State-Specific Addendum is included to address specific legal requirements for franchisees residing or operating in certain states. These addenda modify the Franchise Disclosure Document, Franchise Agreement, and Multi-Unit Development Agreement to ensure compliance with state laws. The purpose is to inform potential franchisees of any state-specific regulations that may affect their rights and obligations under the franchise agreement.
For example, in California, the addendum revises Item 1 of the Franchise Disclosure Document to emphasize the franchisee's responsibility to comply with privacy laws like the California Consumer Privacy Act when handling customer information. It also revises Item 5 of the Franchise Disclosure Document, Section 5.1 of the Franchise Agreement, and Section 3.2 of the Multi-Unit Development Agreement to disclose that Big Air Franchising, LLC has surety bonds in California totaling $300,000 ($60,000 and $240,000) to protect franchisees if the franchisor fails to meet its obligations.
Similarly, for Michigan, the addendum states that certain unfair provisions that might be in the franchise documents are void and unenforceable. These include prohibitions on joining franchisee associations, requirements to waive rights and protections under the act, termination of the franchise without good cause, and failure to compensate the franchisee for the fair market value of inventory and equipment upon non-renewal. These state-specific addenda ensure that the Big Air Trampoline Park franchise agreements comply with local laws and protect franchisees' rights, varying from state to state.
For prospective franchisees, this means carefully reviewing the State-Specific Addendum applicable to their state of residence or operation. These addenda can significantly alter the terms of the franchise agreement and understanding these changes is crucial for making an informed investment decision. Franchisees should consult with legal counsel to fully understand the implications of these state-specific provisions.