Does Big Air Trampoline Park have the right to assign the franchise system to a competitor?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.2 Franchisor reserves the right to assign the franchise System to anyone, including the operator of a competing national or regional chain or franchise system.
Franchisee acknowledges and agrees that Franchisor may sell its assets, the Marks or the System to any third party of Franchisor's choice; may offer its securities privately or publicly; may merge with or acquire other business entities or be acquired by another business entity; may permit and participate in any transfer or distribution of its securities in connection with a spin-off; may undertake a refinancing, recapitalization, leveraged buyout, or other economic or financial restructuring; or may terminate or cease to exist or dissolve, in any such case without Franchisee's consent and, provided the transferee expressly assumes and undertakes to perform Franchisor's obligations in all material respects, do so free of any responsibility or liability whatsoever to Franchisee after the transaction occurs.
15.3 With regard to any of the above sales, assignment and dispositions, Franchisee expressly and specifically waives any claims, demands, or damages against Franchisor arising from or related to the transfer of the Marks, assets or the System from Franchisor to any other party.
15.4 Franchisee understands and acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee.
Accordingly, this Agreement, Franchisee's rights and interests hereunder, the property and assets owned and used by Franchisee in connection with the Big Air Trampoline Business, and any shares, stock, membership or interest in any corporation, limited liability company, or other entity having an interest in the Big Air Trampoline Business, shall not be voluntarily or involuntarily, directly or indirectly sold, pledged, assigned, transferred, shared, subdivided, subfranchised, encumbered or transferred in any way (including, without limitation, in the event of the death of Franchisee if Franchisee is an individual), in whole or in part, in any manner whatsoever without the prior written approval of Franchisor, which approval will not be unreasonably withheld or delayed, and
compliance with all terms of this Section 15. Any unauthorized sale, assignment, transfer or other conveyance, by operation of law or otherwise, or any attempt to do so, shall be deemed void and grounds for termination of this Agreement by Franchisor.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to the 2025 FDD, Big Air Trampoline Park reserves the right to assign the franchise system to anyone, including a competitor. Specifically, Big Air Trampoline Park can assign the system to the operator of a competing national or regional chain or franchise system. This means that a new franchisee could potentially find themselves under the control of a competing business.
Big Air Trampoline Park also has the right to sell its assets, trademarks, or the system to any third party. This can be done without the franchisee's consent. However, the new owner must take on Big Air Trampoline Park's obligations in all material respects.
As a franchisee, you waive any claims, demands, or damages against Big Air Trampoline Park that arise from the transfer of the trademarks, assets, or the system to another party. The agreement specifies that the rights and duties are personal to the franchisee, and any transfer of the franchise requires prior written approval from Big Air Trampoline Park, which will not be unreasonably withheld or delayed.