What is the purpose of including the state in the Big Air Trampoline Park document?
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.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, including state-specific addenda ensures franchisees are aware of and protected by the laws of their particular state. These addenda modify the standard franchise agreement to comply with state laws that may differ from the franchisor's standard terms. For example, certain states may have regulations regarding termination, renewal, or transfer of a franchise, and these are addressed in the state-specific addenda.
In California, the addendum revises Item 1 of the Franchise Disclosure Document to emphasize compliance with privacy laws like the California Consumer Privacy Act, which protects consumers' personal 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 address surety bond requirements due to the franchisor's capitalization. These bonds are available for franchisees to recover damages if Big Air Trampoline Park fails to fulfill its obligations.
In Michigan, the addendum voids certain unfair provisions that might be present in the franchise documents, such as restrictions on joining franchisee associations or requiring franchisees to waive rights and protections under the Michigan Franchise Investment Law. Similarly, for Rhode Island, the addendum addresses venue and jurisdiction, ensuring that franchisees are not forced to litigate claims outside of Rhode Island under the laws of another state.
These state-specific addenda are crucial for prospective Big Air Trampoline Park franchisees because they highlight legal protections and modifications to the franchise agreement that are specific to their state of operation. Franchisees should carefully review these addenda to understand their rights and obligations under the laws of their state.