Can Big Blue Swim School or its affiliates own or operate another Big Blue Swim School within the Area of Protection?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
During the franchise term, we and our affiliates will not own or operate, or allow another franchisee or licensee to own or operate, another BIG BLUE Swim School (operating the Swim School Concept) having its physical location within the Area of Protection. This means that you have exclusive rights in the Area of Protection for the Swim School Concept operating under the Marks. Continuation of your franchise and exclusivity does not depend on your achieving a certain sales volume, market penetration, or other contingency.
Except for this exclusivity to the BIG BLUE Swim School Swim School Concept (i.e., no other BIG BLUE Swim School operating the Swim School Concept may have its physical location within the Area of Protection), we and our affiliates retain all rights with respect to BIG BLUE Swim Schools, the Marks, the offer and sale of similar or dissimilar services and products, and any other activities we and they deem appropriate, whenever and wherever we and they desire, whether inside or outside the Area of Protection. Those rights include the following:
- (1) to own and operate, and to allow other franchisees and licensees to own and operate, BIG BLUE Swim Schools (whether or not operating the Swim School Concept) at any locations outside the Area of Protection (including at the boundary of the Area of Protection) and on any terms and conditions we and they deem appropriate;
- (2) to own and operate, and to allow other franchisees and licensees to own and operate, at any locations inside the Area of Protection and on any terms and conditions we and they deem appropriate, BIG BLUE Swim Schools not operating the Swim School Concept;
- (3) to offer and sell, and to allow others to offer and sell, inside and outside the Area of Protection, and on any terms and conditions we and they deem appropriate, services and products that are identical or similar to and/or competitive with those offered and sold by BIG BLUE Swim Schools, whether identified by the Marks or other trademarks or service marks, through any advertising media, distribution channels (including the Internet), and shipping and delivery methods and to any customer, no matter where located, but not through BIG BLUE Swim Schools operating the Swim School Concept that have their physical locations inside the Area of Protection;
- (4) to establish and operate, and to allow others to establish and operate, anywhere (including inside or outside the Area of Protection) businesses offering similar services and products under trademarks and service marks other than the Marks;
- (5) to acquire the assets or ownership interests of one or more businesses offering and selling services and products similar to those offered and sold at BIG BLUE Swim Schools (even if such a business operates, franchises, or licenses "Competitive Businesses"), and operate, franchise, license, or create similar arrangements for those businesses once acquired, wherever
those businesses (or the franchisees or licensees of those businesses) are located or operating, including within the Area of Protection;
- (6) to be acquired (through acquisition of assets, ownership interests, or otherwise, regardless of the transaction form) by a business offering and selling services and products similar to those offered and sold at BIG BLUE Swim Schools, or by another business, even if such a business operates, franchises, or licenses Competitive Businesses inside or outside the Area of Protection; and
- (7) to engage in all other activities the Franchise Agreement does not expressly prohibit.
Source: Item 12 — TERRITORY (FDD pages 51–55)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, franchisees are granted an Area of Protection, within which Big Blue Swim School and its affiliates will not operate or allow another franchisee or licensee to operate another Big Blue Swim School operating the Swim School Concept. This provision ensures that franchisees have exclusive rights to the Swim School Concept within their Area of Protection. The Area of Protection is typically expected to be approximately 10 to 15 minutes from the franchisee's site. However, Big Blue Swim School retains certain rights, including the right to offer and sell similar services and products under different trademarks, and to operate Big Blue Swim Schools not operating the Swim School Concept inside the Area of Protection.
This exclusivity is limited to Big Blue Swim Schools operating the Swim School Concept. Big Blue Swim School and its affiliates retain the right to operate Big Blue Swim Schools that do not operate the Swim School Concept within the Area of Protection. They can also offer similar services and products through other channels, as long as they are not operating a Big Blue Swim School with the Swim School Concept inside the franchisee's Area of Protection. This means that while a franchisee is protected from direct competition from another Big Blue Swim School operating the same concept, Big Blue Swim School can still engage in other business activities within the area.
Big Blue Swim School also retains the right to acquire businesses that offer similar services, even if those businesses operate within the Area of Protection. They can operate, franchise, or license these acquired businesses. Additionally, Big Blue Swim School can be acquired by a business offering similar services, even if that business operates within the Area of Protection. These provisions highlight that the franchisee's exclusivity is specifically tied to the Big Blue Swim School operating the Swim School Concept and does not prevent Big Blue Swim School from engaging in other business activities or being acquired by another company.
Prospective franchisees should be aware that the Area of Protection provides exclusivity only against other Big Blue Swim School locations operating the Swim School Concept. Big Blue Swim School retains significant rights to conduct other business activities, including offering similar services under different brands or through different channels, and to acquire or be acquired by competing businesses. Franchisees should carefully consider these limitations when evaluating the potential for competition within their Area of Protection.