Where will the site of arbitration or mediation be located for a Big Air Trampoline Park franchise dispute?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
Act, as amended, and arbitration shall take place according to the commercial arbitration rules of the American Arbitration Association in effect as of the date the demand for arbitration is filed. The arbitration shall be held in the state of California. However, arbitration will not be used for any dispute which involves the Franchisee's continued usage of any of the Proprietary Marks or the System, business concept or any issue involving injunctive relief against the Franchisee or any issues related to disclosure or misuse of Confidential Information or Trade Secrets, all of which issues will be submitted to a court within the State of Indiana. The parties expressly consent to personal jurisdiction in the State of Indiana and agree that these court(s) will have exclusive jurisdiction over any such issues not subject to arbitration. This language has been included in this Franchise Agreement as a condition to registration. The Franchisor and the Franchisee do not agree with the above language and believe that each of the provisions of the Franchise Agreement, including all venue provisions, are fully enforceable. The Franchisor and Franchisee intend to fully enforce all of the provisions of the Franchise Agreement and all other documents signed by them, including but not limited to, all venue, choice-of-law, arbitration provisions and other dispute avoidance and resolution provisions and to rely on federal pre-emption under the Federal Arbitration Act.
The first paragraph of Section 6 of the Nondisclosure And Noncompetition Agreement is hereby deleted in its entirety and the following is substituted in its place:
- Post-Termination Covenant Not to Compete.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, the location for arbitration or mediation depends on the state where the franchise was purchased. For franchises purchased in Washington, the arbitration or mediation site will be in Washington, or a location mutually agreed upon, or as determined by the arbitrator or mediator. For franchises in North Dakota, the site of arbitration or mediation will be agreeable to all parties and may not be remote from the franchisee's place of business. For all other states, the arbitration shall be held in the state of California. However, arbitration will not be used for any dispute which involves the Franchisee's continued usage of any of the Proprietary Marks or the System, business concept or any issue involving injunctive relief against the Franchisee or any issues related to disclosure or misuse of Confidential Information or Trade Secrets, all of which issues will be submitted to a court within the State of Indiana. The parties expressly consent to personal jurisdiction in the State of Indiana and agree that these court(s) will have exclusive jurisdiction over any such issues not subject to arbitration.
This means that a Big Air Trampoline Park franchisee's location could significantly impact where they would need to travel for dispute resolution. Franchisees in Washington and North Dakota have specific stipulations that could keep the proceedings local or at least require mutual agreement on the location. However, franchisees in other states may be required to participate in arbitration in California, which could increase costs and logistical challenges. Disputes regarding proprietary marks, the system, injunctive relief, confidential information, or trade secrets will be submitted to a court within the State of Indiana.
Prospective franchisees should carefully consider these venue provisions and their potential implications. It is essential to understand that the franchisor intends to fully enforce all venue, choice-of-law, and arbitration provisions, relying on federal pre-emption under the Federal Arbitration Act. Therefore, franchisees should be prepared to potentially bear the costs of traveling to California or Indiana for dispute resolution, depending on the nature of the dispute and the location of the franchise.