Under what conditions can the Intellectual Property License for Big Air Trampoline Park be terminated?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
The "BIG AIR TRAMPOLINE PARK and LOGO" Marks and the System are owned by H2O. H2O has granted us a non-exclusive license ("Intellectual Property License") to use the intellectual property for purposes of franchising the System around the world. The Intellectual Property License extends for 50 years, commencing February 11, 2015 provided that we are not in default or do not materially breach the Intellectual Property License by engaging in any activity which damages the Marks or the goodwill of the System. In the event the Intellectual Property License is terminated, H2O has agreed to negotiate a license with our licensees to use the "BIG AIR TRAMPOLINE PARK and LOGO" Marks and the System on substantially the same terms as the terms in our Intellectual Property License.
Source: Item 13 — TRADEMARKS (FDD pages 36–38)
What This Means (2025 FDD)
According to the 2025 Big Air Trampoline Park Franchise Disclosure Document, the Intellectual Property License, which grants Big Air Trampoline Park the right to franchise its system, extends for 50 years from February 11, 2015. However, this license can be terminated if Big Air Trampoline Park defaults on its obligations or materially breaches the Intellectual Property License. A material breach would include any activity that damages the trademarks or the goodwill of the Big Air Trampoline Park system.
If the Intellectual Property License is terminated, H2O, the owner of the "BIG AIR TRAMPOLINE PARK and LOGO" marks and the system, has agreed to negotiate a license with Big Air Trampoline Park's franchisees. This new license would allow franchisees to continue using the trademarks and system under substantially the same terms as the original Intellectual Property License. This provision aims to protect franchisees in the event of a dispute between Big Air Trampoline Park and H2O.
For a prospective franchisee, this clause offers some reassurance. While the termination of the Intellectual Property License could create uncertainty, the agreement between H2O and Big Air Trampoline Park seeks to ensure business continuity for franchisees. It is important for potential franchisees to understand the terms of both the Franchise Agreement and the Intellectual Property License to fully assess the risks and benefits of investing in a Big Air Trampoline Park franchise.