Is the Big Blue Swim School Brand Fund accounted for separately from other funds?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
benefits on a pro rata basis from the MSC. You are not a third-party beneficiary of the MSC. We may discontinue operation of the MSC at any time in our sole judgment.
We may charge you and other BIG BLUE Swim Schools (or cause BIG BLUE Swim Schools to be charged) an administrative fee, not to exceed two percent (2%) of the School's Gross Revenue, payable on or before the Payment Day we specify for the preceding Calculation Period we specify, to support the MSC's operation, including staffing, equipment, and technology (the "MSC Fee"). The purpose of the MSC Fee is to cover, and/or reimburse us or our designee for, the actual costs of operating the MSC. The MSC Fee is separate from the Royalty, Brand Fund contribution (defined in Section 13.B below), Software License Fee, and other fees and charges due under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, the Brand Fund is maintained separately from other fees. Specifically, the MSC (Marketing Support Center) Fee is distinct from the Brand Fund contribution, Royalty, and Software License Fee. This separation ensures that contributions to the Brand Fund are used specifically for marketing and brand-related activities, as outlined in the FDD.
The Brand Fund's primary goals are to enhance the Big Blue Swim School brand, increase recognition of its trademarks, and boost patronage of Big Blue Swim School locations. While Big Blue Swim School aims to use the Brand Fund to benefit all franchisees, there's no guarantee that the expenditures in any specific geographic area will be proportional to the contributions from franchisees in that area. The fund will not be used primarily to solicit franchisees, though franchise program information may be included in marketing materials.
Big Blue Swim School has the authority to manage the Brand Fund, including collecting unpaid contributions, forgiving debts, and taking legal action to recover unpaid amounts. They can also defer or reduce contributions from any franchisee, or even suspend the Brand Fund entirely, with prior written notice. If the Brand Fund is terminated, the remaining balance will either be spent on permitted programs or distributed to existing franchisees and Big Blue Swim School affiliates in proportion to their contributions over the previous year. This separation of funds and clear outline of fund usage provides transparency for franchisees regarding how their contributions are being utilized to support the brand.