What is the standard for Big Air Trampoline Park's approval of a franchisee's transfer request?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) Franchisee shall, at Franchisor's request, prepare and furnish to the transferee and/or Franchisor such financial reports and other data relating to the Big Air Trampoline Business and its operations as Franchisor deems reasonably necessary or appropriate for the transferee and/or Franchisor to evaluate the Big Air Trampoline Business and the proposed transfer.
Franchisee authorizes Franchisor to confer with a proposed transferee and furnish it with information concerning the Big Air Trampoline Business and the terms and conditions of the proposed transfer, and Franchisor may do so without any liability, except for intentional misstatements made to a transferee;
- (g) the parties to the proposed transaction will have entered into a binding agreement subject only to the rights of Franchisor set out in Section 16.
Franchisor shall be furnished a copy of this binding agreement, and such agreement shall be subject to Franchisor's approval in writing.
Franchisee must advise each prospective transferee of this provision and the other terms of this Agreement;
(h) the proposed transferee or the stockholders, partners, members or owners of a beneficial interest in a proposed corporation, partnership, limited liability company or other entity transferee, provide jointly and severally such personal guarantees as Franchisor may request, guaranteeing the proposed transferee's performance of its obligations under the agreements to be entered into;
(i) the proposed transferee shall have demonstrated to Franchisor's satisfaction that it, he or she will meet in all respects Franchisor's standards applicable to new franchisees regarding experience, personal and financial reputation and stability, willingness and ability to devote its, his or her full time and best efforts to the operation of the Big Air Trampoline Business, and any other conditions as Franchisor may reasonably apply in evaluating new franchisees.
Franchisor must be provided with all information about the proposed transferee as Franchisor may reasonably require.
Because of the confidential information and trade secrets available to a franchisee, no assignment to a competitor of Franchisor will be permitted; and
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to the 2025 FDD, Big Air Trampoline Park has several requirements that a franchisee must meet for a transfer to be approved. The franchisee must provide financial reports and data about the Big Air Trampoline Business to both the potential transferee and Big Air Trampoline Park, allowing them to evaluate the business. The franchisee also authorizes Big Air Trampoline Park to discuss the business and transfer terms with the potential transferee, without liability for unintentional misstatements. The parties involved must enter a binding agreement that is subject to Big Air Trampoline Park's written approval, and the franchisee must inform the transferee of these provisions.
Furthermore, the potential transferee must meet Big Air Trampoline Park's standards for new franchisees, including experience, financial stability, and a commitment to the business. They must also provide personal guarantees if requested by Big Air Trampoline Park. The franchisee must provide all necessary information about the proposed transferee to Big Air Trampoline Park. Transfers to competitors of Big Air Trampoline Park are not permitted due to the confidential information involved in running the franchise.
These conditions are typical in franchising, as franchisors want to ensure that any new franchisee is well-qualified and capable of maintaining the brand's standards and reputation. The transfer process protects Big Air Trampoline Park's interests by ensuring that the new franchisee is a good fit and that the business continues to operate successfully. The transfer process also protects the potential transferee by ensuring they have access to all relevant information about the business before committing to the purchase.