Does Big Blue Swim School have to approve a supplier if the franchisee meets all the requirements?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Despite these procedures, we have the right to limit the number of approved suppliers and distributors, designate sources you must use, and refuse your requests for any reason, including because we already have designated an exclusive source (which might be us or our affiliate) for a particular item or service or believe that doing so is in the BIG BLUE Swim School network's best interest. It might be disadvantageous from a cost and service basis to have more than one supplier in a given market area, and we have the right to consider the impact of any supplier approval on our and our franchisees' ability to obtain the lowest distribution costs and best service. If we approve any supplier or distributor you recommend, we have the right to authorize other BIG BLUE Swim Schools to buy or lease any Operating Assets or other products or services from that supplier or distributor without compensating you.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 29–34)
What This Means (2025 FDD)
According to the 2025 FDD, Big Blue Swim School does not guarantee approval of a supplier even if the franchisee meets all requirements. Big Blue Swim School retains the right to refuse a franchisee's supplier request for any reason. This includes situations where Big Blue Swim School has already designated an exclusive source for a particular item or service, potentially one of their affiliates. Big Blue Swim School can also deny a request if they believe doing so is in the best interest of the Big Blue Swim School network.
Big Blue Swim School emphasizes that having multiple suppliers in a market area could be disadvantageous from a cost and service perspective. Therefore, they reserve the right to consider the impact of any supplier approval on their and their franchisees' ability to obtain the lowest distribution costs and best service. If Big Blue Swim School approves a franchisee's recommended supplier, they have the right to authorize other Big Blue Swim School locations to purchase from that supplier without compensating the franchisee who initially recommended them.
Prospective franchisees should be aware that Big Blue Swim School maintains significant control over the supply chain and supplier selection. While franchisees can propose suppliers, Big Blue Swim School's ultimate decision is discretionary and may be based on factors beyond the individual franchisee's compliance with requirements. This policy ensures brand consistency and potentially leverages the franchisor's buying power, but it also limits the franchisee's autonomy in sourcing products and services.