Is Big Blue Swim School allowed to operate Big Blue Swim Schools outside of a franchisee's Area of Protection?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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;
Source: Item 12 — TERRITORY (FDD pages 51–55)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, Big Blue Swim School retains the right to operate or allow others to operate Big Blue Swim School franchises outside of a franchisee's Area of Protection. This means that while a franchisee is granted an Area of Protection, Big Blue Swim School can still establish other locations outside that area. This could potentially impact a franchisee's business if new locations are opened nearby, even if they are technically outside the protected area.
Big Blue Swim School also retains significant rights within a franchisee's Area of Protection. They can operate Big Blue Swim Schools that do not operate the Swim School Concept within the Area of Protection. They can also offer and sell similar services and products inside and outside the Area of Protection through various channels, as long as it's not through a Big Blue Swim School operating the Swim School Concept that has physical locations inside the Area of Protection. This broad reservation of rights gives Big Blue Swim School considerable flexibility in how it operates and expands its brand, potentially creating competition for franchisees even within their protected areas.
Furthermore, Big Blue Swim School can modify a franchisee's Area of Protection under certain conditions, such as when exercising Qualified Site Lease Rights. If a franchisee rejects a Qualified Site within their Territory, Big Blue Swim School has the right to establish a Big Blue Swim School at that site, which may involve adjusting the franchisee's territory. This highlights the importance of carefully evaluating potential sites and understanding the conditions under which Big Blue Swim School can alter the Area of Protection. Franchisees should be aware that their Area of Protection is not absolute and can be subject to change based on Big Blue Swim School's strategic decisions.