When does the Big Blue Swim School agreement become effective?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Simultaneously with signing this DRA, we and you (or your Approved Affiliate, as defined in Section 2 below) also are signing as of the Effective Date a franchise agreement (the "First Franchise Agreement") for the construction, development, and operation of the first BIG BLUE Swim School to be developed within the Territory (defined below). We and you are signing this DRA because you want the right to construct, develop, and operate multiple BIG BLUE Swim Schools within the Territory over a certain time period (besides the BIG BLUE Swim School covered by the First Franchise Agreement), and we are willing to grant you those development rights if you comply with the terms of this DRA.
Source: Item 23 — RECEIPTS (FDD pages 76–278)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School FDD, the franchise agreement for the first Big Blue Swim School becomes effective simultaneously with the signing of the Development Rights Agreement (DRA). Specifically, the FDD states that the franchise agreement is signed "as of the Effective Date" of the DRA. This means that the franchise agreement and the DRA are executed at the same time.
For a prospective franchisee, this simultaneous signing is an important consideration. It means that the franchisee is committing to both the development rights for multiple locations and the specific franchise terms for the first location at the same time. This differs from a single-unit franchise agreement, where the franchisee only commits to one location initially.
Big Blue Swim School expects the lease, franchise agreement, and SaaS Agreement to be signed at the same time. The franchisee must sign a separate franchise agreement (and related documents) for that Big Blue Swim School within the time period Big Blue Swim School specifies (but no later than the deadline on the Schedule).