What agreement is signed simultaneously with the DRA for a Big Blue Swim School franchise?
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 Franchise Disclosure Document, when signing a Development Rights Agreement (DRA), the franchisee also signs a franchise agreement. Specifically, the franchisee and Big Blue Swim School sign a franchise agreement for the construction, development, and operation of the first Big Blue Swim School to be developed within the designated territory. This initial franchise agreement is referred to as the "First Franchise Agreement."
This simultaneous signing is a key component of the DRA, as it secures the franchisee's rights to develop the initial Big Blue Swim School location while also granting the option to develop additional locations within a specific territory, provided they comply with the terms outlined in the DRA. The DRA grants the franchisee the right to construct, develop, and operate multiple Big Blue Swim Schools within a defined territory over a specified period.
It is important to note that the DRA itself does not grant any independent franchise rights. Franchise rights are only established through the individual franchise agreements signed directly with Big Blue Swim School for each location. The DRA grants potential development rights contingent upon full compliance with its terms. Therefore, the initial franchise agreement signed alongside the DRA is crucial for establishing the franchisee's first Big Blue Swim School location and setting the stage for potential future development.