May Big Blue Swim School and its affiliates derive revenue from franchisee purchases and leases?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
We may periodically designate and approve Brand Standards, manufacturers, suppliers, and/or distributors for the Operating Assets and other services and products we periodically authorize for use or sale by BIG BLUE Swim Schools. You must purchase or lease all Operating Assets and other services and products you use or sell at the School only according to our Brand Standards and, if we require, only from suppliers or distributors we designate or approve (which may include or be limited to us, certain of our affiliates, and/or other restricted sources). We and/or our affiliates may derive revenue based on your purchases and leases, including, without limitation, from charging you (at prices exceeding our and their costs) for services and products we or our affiliates sell you and from promotional allowances, volume discounts, and other amounts paid to us and our affiliates by suppliers that we designate, approve, or recommend for some or all BIG BLUE Swim School franchisees. We and our affiliates may use all amounts received from suppliers, whether or not based on your and other franchisees' prospective or actual dealings with them, without restriction for any purposes we and our affiliates deem appropriate.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, Big Blue Swim School and its affiliates may derive revenue from franchisee purchases and leases. Big Blue Swim School may periodically designate and approve Brand Standards, manufacturers, suppliers, and/or distributors for the Operating Assets and other services and products that franchisees are authorized to use or sell. Franchisees must purchase or lease all Operating Assets and other services and products according to Big Blue Swim School's Brand Standards, and if required, only from suppliers or distributors that Big Blue Swim School designates or approves, which may include Big Blue Swim School, its affiliates, and/or other restricted sources.
Big Blue Swim School and/or its affiliates may derive revenue from these purchases and leases. This revenue may come from charging franchisees prices exceeding Big Blue Swim School's and its affiliates' costs for services and products they sell to franchisees. Revenue may also come from promotional allowances, volume discounts, and other amounts paid to Big Blue Swim School and its affiliates by suppliers that Big Blue Swim School designates, approves, or recommends for some or all Big Blue Swim School franchisees.
Big Blue Swim School and its affiliates can use all amounts received from suppliers without restriction for any purposes they deem appropriate, regardless of whether these amounts are based on franchisees' prospective or actual dealings with those suppliers. This arrangement is common in franchising, where franchisors often negotiate discounts or rebates with suppliers based on the collective purchasing power of their franchise network. However, it's important for prospective franchisees to understand how these arrangements work and how they might affect the cost of goods and services they purchase for their Big Blue Swim School location.