Does Big Blue Swim School currently have any advertising cooperatives?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising Cooperatives
There currently are no advertising cooperatives. However, we have the right to designate a geographic area for an advertising cooperative (a "Cooperative"). The Cooperative's members in any area are the owners of all BIG BLUE Swim Schools located and operating in that area
(including us and our affiliates, if applicable). Each Cooperative will be organized and governed in a form and manner, and begin operating on a date, we determine. There need not be any formal agreements or bylaws to administer the Cooperative. We have the right to change, dissolve, and merge Cooperatives. Each Cooperative's purpose is, with our approval, to administer advertising programs and develop Marketing Materials for the area the Cooperative covers. You automatically will become a member of any existing or new Cooperative formed in your market area and must participate in the Cooperative as we require. We have the right to require you to contribute to the Cooperative up to 4% of the School's Gross Revenue during the applicable preceding Calculation Period. BIG BLUE Swim Schools that we and our affiliates own in the Cooperative's area will contribute at the same rate. All Cooperative dues will count toward the Local Marketing Spending Requirement but not toward the initial public relations and market introduction program or Brand Fund contributions. The Cooperative will prepare annual, unaudited financial statements you may review. (Franchise Agreement – Section 13.E)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–51)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School FDD, the franchise does not currently have any advertising cooperatives. However, Big Blue Swim School retains the right to designate geographic areas for advertising cooperatives in the future.
If Big Blue Swim School establishes a cooperative in a franchisee's area, membership is automatic, and participation is mandatory as required by the franchisor. Franchisees may be required to contribute up to 4% of their school's gross revenue to the cooperative during the preceding calculation period. Big Blue Swim School locations owned by the company or its affiliates within the cooperative area will contribute at the same rate.
Funds contributed to the cooperative count toward the local marketing spending requirement but do not count toward the initial public relations and market introduction program or Brand Fund contributions. The cooperative will provide annual, unaudited financial statements for franchisee review. This structure allows Big Blue Swim School to implement regional advertising strategies while ensuring franchisee participation and financial transparency.