After a valid assignment of the Franchise Agreement for a Big Air Trampoline Park, what obligations will the assignee(s) have?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.5 With and after each valid assignment of this Agreement pursuant to this Section 15, the assignee or assignees of Franchisee shall be deemed to be Franchisee under this Agreement and will be bound by and liable for all of Franchisee's existing and future obligations.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to the 2025 FDD, after a valid assignment of the Franchise Agreement, the assignee assumes all responsibilities of the franchisee. This means the new franchisee is legally bound to fulfill all existing and future obligations outlined in the original agreement.
This transfer of responsibility includes, but isn't limited to, adhering to operational standards, paying any outstanding debts, and upholding all terms and conditions of the franchise agreement. Big Air Trampoline Park requires compliance with all stipulations in Section 15 of the agreement, which likely covers specific requirements related to the assignment process itself. Any unauthorized attempt to transfer the agreement can be considered void and may lead to termination of the agreement by Big Air Trampoline Park.
For a prospective franchisee, this clause highlights the importance of understanding all aspects of the Franchise Agreement before considering an assignment. The assignee should conduct thorough due diligence to assess the full scope of responsibilities and liabilities they will be undertaking. This includes reviewing the original agreement, understanding any outstanding obligations of the assignor, and ensuring they can meet all requirements to avoid potential default or termination.