What does the term 'Franchise' refer to in the Big Air Trampoline Park franchise agreement?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to the 2025 Big Air Trampoline Park FDD, the term 'Franchise' is used in several contexts, primarily referring to the rights granted to a franchisee to operate a Big Air Trampoline Business. The franchise agreement outlines the terms and conditions under which a franchisee can use Big Air Trampoline Park's trademarks and system.
Specifically, the franchise grants the right to establish and operate a Big Air Trampoline Business within a defined territory, although this right is non-exclusive, meaning Big Air Trampoline Park retains the right to operate or franchise other businesses outside the territory and through alternative channels. The agreement also specifies the term of the franchise, typically ten years, with an option for renewal under certain conditions, including the franchisee's compliance with the agreement and payment of a successor franchise fee.
For a Multi-Unit Developer, each Big Air Trampoline Facility will be governed by an individual Franchise Agreement. The Multi-Unit Developer does not receive any exclusive or protected territorial rights other than the territory granted with each Big Air Trampoline Facility at each Franchised Location. 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.