Is approval needed from Big Blue Swim School for transfers of ownership by will or inheritance?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
17.E. Death or Disability
17.E.1 Transfer Upon Death or Disability
Upon the death or disability of one of your owners, that owner's executor, administrator, conservator, guardian, or other personal representative (the "Representative") must transfer the owner's ownership interest in you (or an owner) to a third party, which may include an Immediate Family member. That transfer (including transfer by bequest or inheritance) must occur, subject to our rights under this Section 17.E, within a reasonable time, not to exceed six (6) months from the date of death or disability, and is subject to all terms and conditions in this Section 17. A failure to transfer such interest within this time period is a breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, transfers of ownership interests due to death or disability require the franchisor's approval. Specifically, if an owner dies or becomes disabled, their representative (executor, administrator, etc.) must transfer the ownership interest to a third party, which can include an immediate family member.
This transfer, including those by bequest or inheritance, must occur within a reasonable time frame, specifically within six months from the date of death or disability. The transfer is subject to all the terms and conditions outlined in Section 17.E of the franchise agreement. Failure to transfer the interest within the specified time period constitutes a breach of the agreement.
This clause ensures that Big Blue Swim School maintains control over who becomes a franchisee, even in cases of unforeseen circumstances like death or disability. The six-month window provides a balance, allowing the estate to handle the transfer while ensuring the franchise continues to operate under an approved owner. Prospective franchisees should carefully consider these requirements and discuss with Big Blue Swim School how these transfer provisions might affect their estate planning and business succession strategies.