Does Big Blue Swim School have the absolute right to reject any site not meeting their criteria?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
te that we have not accepted.
We will not unreasonably withhold our acceptance of a site if, in our experience and based on the factors outlined above, the proposed site is not inconsistent with sites that we regard as favorable or that otherwise have been successful sites in the past for BIG BLUE Swim Schools. However, we have the absolute right to reject any site not meeting our criteria or to require you to acknowledge in writing that a site you prefer is accepted but not recommended due to its incompatibility with certain factors that bear on a site's suitability as a location for a BIG BLUE Swim School. You must evaluate and ultimately approve the selection of the School's site. (Franchise Agreement—Section 4.B;
Development Rights Agreement—Section 5) We do not own locations for lease to franchisees. Under the DRA, we first must accept each new site you propose for each new BIG BLUE Swim School. Our then-current standards for sites will apply.
We have the right to terminate the Franchise Agreement (and, in limited circumstances, the Development Rights Agreement) if you reject a School site the location and physical and other characteristics of which, and the proposed commercial-lease terms for which (as encompassed in a lease letter of intent that we or your third-party vendor negotiated or reviewed), were accepted by our real-estate committee (a "Qualified Site"). (Franchise Agreement—Section 4.B; Development Rights Agreement—Section 5) There is no refund of any initial franchise fee or development fee upon such termination.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–51)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, Big Blue Swim School retains the absolute right to reject any proposed site that does not meet their established criteria. However, Big Blue Swim School will not unreasonably withhold acceptance of a site if it aligns with characteristics of previously successful locations. The franchisee is responsible for evaluating and ultimately approving the site selection.
This means that while franchisees are responsible for finding and initially approving their location, Big Blue Swim School has the final say in whether the site is acceptable. This protects the brand by ensuring each location meets the standards Big Blue Swim School has determined are necessary for success.
However, the FDD also states that Big Blue Swim School has the right to terminate the Franchise Agreement if the franchisee rejects a site that Big Blue Swim School's real estate committee has already accepted. If a franchisee fails to secure an acceptable site within 210 days after the Franchise Agreement's effective date, Big Blue Swim School also has the right to terminate the agreement. In either termination scenario, the initial franchise fee is non-refundable, highlighting the importance of site selection and agreement between both parties.
Prospective franchisees should carefully consider Big Blue Swim School's site selection criteria and work closely with them during the site selection process to avoid potential conflicts or termination of the agreement. Understanding these conditions is crucial before investing in a Big Blue Swim School franchise.