What rights does the Franchisor hold regarding the Big Air Trampoline Park system?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
developing Big Air Trampoline Facilities, and complies with the terms of this Agreement, the Development Schedule, and the individual Franchise Agreement for each Big Air Trampoline Facility, then Franchisor will not franchise or license others, nor will it itself directly or indirectly develop, own, lease, construct or operate in any manner, any Big Air Trampoline Facilities in the Development Territory during the term hereof; however, Franchisor reserves the right to sell products and services under the Marks or any other marks, through any other retail location or through any other channels of distribution, including through mail order, catalogue sales or over the Internet. Franchisor also reserves the right to (a) establish, operate or license to any other person or entity the right to establish or operate a Big Air Trampoline Facility owned or licensed by Franchisor at any location outside the Development Territory; (b) develop, lease and license the use of, at any location side or outside of the Development Territory, trademarks other than the Marks, in connection with the operation of a system which offers products or services which are similar to or different from those offered under the System, on any terms or conditions which Franchisor deems advisable; (c) merge with, or be acquired by any other business, including a business that competes with Big Air Trampoline Facilities operated by Multi-Unit Developer, or to acquire and convert to the System operated by Franchisor any business offering an indoor trampoline recreation and party center featuring trampolines, foam pits, rock climbing walls and other elements and the sale of related products operated by competitors, located inside or outside of the Development Territory or otherwise operated independently as part of, or in association with, any other system or chain, whether franchised or corporately owned; and (d) implement multi-area marketing programs which may allow Franchisor or others to solicit or sell to customers anywhere, and to issue mandatory policies to coordinate these multi-area marketing programs. Upon the expiration or termination of this Agreement, the Multi-Unit Developer will no longer have an exclusive Development Territory and each Big Air Trampoline Facility will be limited to operating solely at the franchised location ("Franchised Location") described in the individual Franchise Agreement. Multi-Unit Developer understands, acknowledges and agrees that as a Franchisee, Multi-Unit Developer will not receive any exclusive or protected territorial rights other than the territory granted with each Big Air Trampoline Facility at each Franchised Location.
- 1.3 This Agreement is not a franchise agreement and Multi-Unit Developer shall have no right to use in any manner the Marks or System by virtue hereof. Each Big Air Trampoline Facility will be governed by the individual Franchise Agreement signed by Franchisor and Multi-Unit Developer for each Big Air Trampoline Facility.
1.4 The Multi-Unit Developer must contribute some amount of its personal capital to the development of each Big Air Trampoline Facility and must own at least a 51% equity interest in each Big Air Trampoline Facility developed hereunder. In addition, Multi-Unit Developer shall ensure that a person ("Designate Business Manager") shall at all times devote his or her full time and attention to managing, supervising, and developing each Big Air Trampoline Facility and that the person is at all times identified to Franchisor. Multi-Unit Developer shall identify all equity owners of Multi-Unit Developer by completing the Statement of Shareholders/Members/Partners attached to this Agreement as Attachment D. Multi-Unit Developer shall provide Franchisor with an updated form of Attachment D within 10 business days of any change in the equity ownership of Multi-Unit Developer. The failure of Multi-Unit Developer to provide Franchisor with an updated Attachment D within the time frame specified in this Section 1.4 shall constitute a material default of this Agreement.
2. TERM
Unless sooner terminated pursuant to the provisions of Section 7, the term of this Agreement shall expire upon the earlier of (a) ______ years from the Effective Date, or (b) completion of the term of the Development Schedule. Franchisor, in its sole discretion, may permit Multi-Unit Developer to renew this Agreement for an additional term;
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to the 2025 FDD, Big Air Trampoline Park retains significant rights regarding the franchise system. Big Air Trampoline Park has the right to establish, operate, or license Big Air Trampoline Facilities outside a franchisee's development territory. They can also develop and license trademarks other than the registered Marks for similar or different services, regardless of location. This means that even if a franchisee has a territory, Big Air Trampoline Park can still operate or franchise similar businesses nearby under different branding.
Big Air Trampoline Park can merge with or be acquired by any other business, including competitors, and can acquire and convert competing businesses to the Big Air Trampoline Park system, regardless of location. They can also implement multi-area marketing programs. This indicates that Big Air Trampoline Park has broad discretion in shaping the future direction of the brand and is not necessarily restricted by individual franchisee territories when it comes to marketing or expansion strategies.
Big Air Trampoline Park also reserves the right to assign the franchise system to anyone, including competitors. Franchisees waive any claims against Big Air Trampoline Park arising from the transfer of the Marks, assets, or the System to another party, provided the new entity assumes Big Air Trampoline Park's obligations. Furthermore, if a franchisee develops any improvements to the Big Air Trampoline Park system, those improvements can be used by Big Air Trampoline Park and other franchisees without any obligation to the franchisee for royalties or other fees, and Big Air Trampoline Park may consider such Improvements as their property and Trade Secrets. These stipulations highlight the franchisor's control over the brand's evolution and its ability to adapt to market changes, potentially at the expense of individual franchisee influence or benefit from their innovations.