Can Big Blue Swim School assign the DRA to a third party?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) We may change our ownership or form and/or assign this DRA to a third party without restriction.
Specifically and without limiting the foregoing, you agree that we may sell our assets (including this DRA), the Marks, or the BIG BLUE Swim School franchise system to a third party; offer our ownership interests privately or publicly; merge, acquire other business entities, or be acquired by another business entity; and/or undertake a refinancing, recapitalization, leveraged buyout, securitization, or other economic or financial restructuring.
Source: Item 23 — RECEIPTS (FDD pages 76–278)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, Big Blue Swim School has the right to assign the Development Rights Agreement (DRA) to a third party without any restrictions. This means that Big Blue Swim School can transfer its rights and obligations under the DRA to another entity without needing the franchisee's consent.
This assignment can occur through various means, including selling assets (such as the DRA, trademarks, or the entire franchise system), offering ownership interests privately or publicly, merging with or being acquired by another business, or undertaking financial restructuring. These actions can significantly alter the future relationship between the franchisee and the franchisor, as a new entity might have different operational strategies or financial capabilities.
While Big Blue Swim School retains the freedom to assign the DRA, the franchisee's development rights are explicitly non-assignable. The franchisee cannot transfer their rights to develop Big Blue Swim School locations to another party. Any attempt to transfer controlling ownership in the franchisee's entity would also be prohibited, ensuring that the development rights remain solely with the original franchisee. This protects Big Blue Swim School's interests by ensuring the original franchisee remains committed to the development schedule and standards outlined in the DRA.