What are considered 'Operating Assets' for a Big Blue Swim School?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) The School must contain all Operating Assets, and only those Operating Assets, we specify or pre-approve. You agree to place or display at the School (interior and exterior), according to our guidelines, only the signs, emblems, lettering, logos, and display materials we approve from time to time. You agree to purchase or lease from time to time only approved brands, types, and models of Operating Assets according to our standards and specifications and, at our direction, only from one or more suppliers we designate or approve (which may include or be limited to us and/or certain of our affiliates). "Operating Assets" means all required furniture, fixtures, signs, and equipment (including components of and required software licenses for the Computer System (defined in Section 7.E)) we periodically require for the School.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School FDD, Operating Assets are defined as all required furniture, fixtures, signs, and equipment, including components of and required software licenses for the Computer System, that Big Blue Swim School periodically requires for the School.
For a prospective franchisee, this means that the initial investment and ongoing expenses will include these specified items. Big Blue Swim School retains the right to specify or pre-approve the Operating Assets that a franchisee must have, ensuring uniformity across all locations. The franchisee is obligated to purchase or lease only approved brands, types, and models of Operating Assets according to Big Blue Swim School's standards and specifications.
Furthermore, Big Blue Swim School may direct franchisees to purchase these assets only from designated or approved suppliers, which may include Big Blue Swim School itself or its affiliates. This arrangement allows Big Blue Swim School and its affiliates to potentially derive revenue from these purchases and leases, adding another layer to the financial relationship between the franchisor and franchisee.
The franchisee must ensure that the School contains all specified Operating Assets and only those that are pre-approved. This requirement is part of maintaining the Brand Standards and ensuring that each Big Blue Swim School location meets the franchisor's expectations for service and quality.