What agreement is signed simultaneously with the Development Rights Agreement for a Big Blue Swim School?
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, when signing a Development Rights Agreement (DRA), the franchisee also signs a franchise agreement. Specifically, this initial franchise agreement pertains to the first Big Blue Swim School to be developed within the designated territory. The Development Rights Agreement grants the franchisee the right to establish multiple Big Blue Swim Schools in a specific territory over a defined period.
This simultaneous signing indicates that Big Blue Swim School requires a commitment to at least one operational franchise location alongside the broader development rights. This ensures that franchisees are not simply speculating on territory but are actively engaged in establishing a Big Blue Swim School presence. The franchise agreement signed at the same time is referred to as the "First Franchise Agreement".
For a prospective franchisee, this means that securing development rights involves an immediate commitment to opening at least one Big Blue Swim School. This dual agreement structure reduces the risk for Big Blue Swim School by ensuring that developers have "skin in the game" from the outset. It also means the franchisee needs to be prepared to begin the process of site selection, leasing, and build-out for their first location concurrently with negotiating the terms of the Development Rights Agreement.