How is a 'controlling ownership interest' defined in the Big Blue Swim School franchise agreement?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
your creditors or any financial institution. Any security interest that may be created in this Agreement by virtue of Section 9-408 of the Uniform Commercial Code is limited as described in Section 9-408(d) of the Uniform Commercial Code.
17.C. Conditions for Approval of Transfer
If you and your owners are in full compliance with this Agreement, then, subject to this Section 17's other provisions:
We will approve the transfer of a non-controlling ownership interest in you if the proposed transferee and its owners are of good moral character, have no ownership interest
in and do not perform services for (and have no affiliates with an ownership interest in or performing services for) a Competitive Business, otherwise meet our
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 definition of "controlling ownership interest" is found in Section 22.M of the franchise agreement. However, the provided excerpts do not include the content of Section 22.M, so the specific definition is not available.
Without the specific definition, it is unclear what percentage of ownership or level of control would be considered "controlling" by Big Blue Swim School. This could relate to voting rights, management authority, or other factors that give an owner significant influence over the business.
A prospective Big Blue Swim School franchisee should carefully review Section 22.M of the franchise agreement to understand the precise meaning of "controlling ownership interest." They should also discuss this definition with a franchise attorney or advisor to fully understand its implications for ownership transfers, business operations, and other aspects of the franchise agreement.