factual

What specific elements define a 'Competitive Business' for a Big Air Trampoline Park franchise?

Big_Air_Trampoline_Park Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 23 — RECEIPT (FDD pages 53–255)

What This Means (2025 FDD)

According to the 2025 FDD, Big Air Trampoline Park retains significant freedom to engage in businesses that might compete with its franchisees. Specifically, Big Air Trampoline Park can operate or license other Big Air Trampoline Facilities outside a franchisee's Development Territory. They can also develop, lease, and license trademarks other than the 'Marks' (BIG AIR TRAMPOLINE PARK and LOGOTM), even if these ventures offer similar products or services. This latitude extends to merging with or acquiring businesses that compete with Big Air Trampoline Park facilities, including converting existing competitor businesses into Big Air Trampoline Park franchises, regardless of location.

This policy has important implications for franchisees. While franchisees may have a territory granted with each Big Air Trampoline Facility at each Franchised Location, Big Air Trampoline Park can still operate or franchise similar businesses outside of those territories. The FDD specifies that multi-unit developers will not receive any exclusive or protected territorial rights other than the territory granted with each Big Air Trampoline Facility at each Franchised Location. This means that a franchisee's market could potentially be impacted by other ventures initiated or acquired by Big Air Trampoline Park.

Furthermore, Big Air Trampoline Park reserves the right to implement multi-area marketing programs that could solicit or sell to customers anywhere, potentially overlapping with a franchisee's customer base. Franchisees need to be aware that Big Air Trampoline Park's activities are not restricted to avoid competition with franchisees, and the franchise agreement does not offer substantial territorial protection beyond the immediate location of the franchised facility. Prospective franchisees should carefully consider these competitive dynamics and how they might affect their business's performance and market share.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.