factual

Does Big Blue Swim School currently require Cooperative contributions?

Big_Blue_Swim_School Franchise · 2025 FDD

Answer from 2025 FDD Document

Type of Fee(1) Amount(2) Due Date Remarks
Email Licenses 5 licenses are included free of charge; for each license over the first 5, you must pay us $6 per month for a basic license and $12 a month for a standard license Monthly This is an optional charge. If you wish to have more than 5 email licenses for your School, we will bill you in the same manner as we bill you for your royalty payments. We may increase these charges to no more than $10 per month for a basic license and $20 per month for a standard license.
Local Marketing Spend 6% of School’s quarterly Gross Revenue Quarterly
Cooperative Contributions(5) An amount we specify up to 4% of School’s Gross Revenue(3) during each Calculation Period(4) As specified We have not yet formed any Cooperatives and do not yet require Cooperative contributions. Footnotes 5 and 6 below describe your local advertising obligations.

Source: Item 6 — OTHER FEES (FDD pages 13–25)

What This Means (2025 FDD)

According to the 2025 Big Blue Swim School FDD, Cooperative contributions are not currently required. Big Blue Swim School has the right to designate a geographic area for an advertising cooperative. If a cooperative is formed, franchisees may be required to contribute up to 4% of the School's Gross Revenue. However, the FDD states that Big Blue Swim School has not yet formed any Cooperatives and does not yet require Cooperative contributions.

If Cooperative contributions are required in the future, these contributions can be used to satisfy the Local Marketing Spending Requirement, which is currently 6% of the School’s quarterly Gross Revenue. However, these contributions cannot be used toward the initial public relations and market introduction program or required Brand Fund contributions.

It is important for prospective franchisees to understand that Big Blue Swim School retains the right to form Cooperatives in the future and require contributions. Franchisees should inquire about the likelihood of Cooperatives being formed in their area and how these contributions would be managed and utilized. Understanding the potential costs and benefits of Cooperative advertising is crucial for financial planning and marketing strategy.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.