What must a Big Blue Swim School contain regarding Operating Assets?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
The School must contain all Operating Assets, and only those Operating Assets, we specify or pre-approve. You must 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.
This means that, besides the rights we have above in clauses (i) through (v), we have the right during the 4th through 8th years after the School commences operation (and unrelated to your potential acquisition of a successor franchise) to require you substantially to alter the School's appearance, layout, and/or design, and/or to replace a material portion of the Operating Assets, in order to meet our then-current requirements and then-current Brand Standards for new BIG BLUE Swim Schools. This could obligate you to make extensive structural changes to, and significantly remodel and renovate, the School and/or to spend substantial amounts for new Operating Assets. You must spend any sums required in order to comply with this obligation and our requirements (even if such expenditures cannot be amortized over the remaining franchise term), provided, however, that we will not require you to spend in the aggregate on any remodeling and renovation project, during the 4th through 8th years after the School commences operation, more than 20% of the initial amount you spent to construct the School. Within 60 days after receiving written notice from us, you must prepare plans according to the standards and specifications we prescribe, using architects and contractors we designate or approve, and then submit those plans to us for written approval.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 29–34)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, each school must contain all Operating Assets that Big Blue Swim School specifies or pre-approves. These Operating Assets include types, models, and brands of furniture, fixtures, signs, and equipment, including components of and required software licenses for the Computer System. Franchisees must place or display only the signs, emblems, lettering, logos, and display materials that Big Blue Swim School approves, both inside and outside the school, according to their guidelines.
Big Blue Swim School also has the right to require franchisees to substantially alter the school's appearance, layout, and/or design, or replace a material portion of the Operating Assets between the 4th and 8th years after the school opens. This is to ensure compliance with the then-current requirements and Brand Standards for new Big Blue Swim Schools. Such changes could involve significant remodeling and renovation, potentially requiring substantial investment in new Operating Assets.
While franchisees are obligated to comply with these requirements, Big Blue Swim School will not require franchisees to spend more than 20% of the initial construction cost on any remodeling and renovation project during the 4th through 8th years of operation. Franchisees must prepare plans for these changes using architects and contractors designated or approved by Big Blue Swim School and submit those plans for written approval within 60 days of receiving notice from Big Blue Swim School.