In what state and court must any action be brought related to a Big Air Trampoline Park franchise?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 11 of the Nondisclosure And Noncompetition Agreement is hereby deleted in its entirety and the following is substituted in its place:
- Governing Law. Except to the extent governed by the Indiana Franchise Disclosure Law or the Indiana Deceptive Franchise Practices Act, this instrument shall be governed by and construed under the laws of the State of California.
Section 12 of the Nondisclosure And Noncompetition Agreement is hereby deleted in its entirety and the following is substituted in its place:
- Jurisdiction and Venue.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Big Air Trampoline Park Franchise Disclosure Document, the Nondisclosure and Noncompetition Agreement specifies the jurisdiction and venue for legal actions. Except when governed by Indiana franchise laws, these agreements are governed by and construed under the laws of the State of California. This means that any legal disputes arising from the Nondisclosure and Noncompetition Agreement, unless specifically subject to Indiana law, must be resolved in California courts.
For a prospective Big Air Trampoline Park franchisee, this clause is significant because it dictates where they may have to travel and engage legal counsel should a dispute arise related to the Nondisclosure and Noncompetition Agreement. Even if the franchisee's Big Air Trampoline Park location is in another state, they may be required to litigate in California, which could increase legal costs due to travel, hiring California-based attorneys, and understanding California-specific laws.
It is important to note the exception for instances governed by the Indiana Franchise Disclosure Law or the Indiana Deceptive Franchise Practices Act. If a dispute falls under these laws, the jurisdiction may differ. Franchisees should seek legal counsel to fully understand their rights and obligations under these agreements and the potential implications of the governing law and venue provisions.
This type of clause is relatively standard in franchise agreements, as franchisors often prefer to have disputes resolved in their home state. However, franchisees should carefully consider the potential costs and inconveniences associated with litigating out-of-state.