What does Big Blue Swim School define as 'Operating Assets'?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to maintain the condition and appearance of the School, the site, and the Operating Assets in accordance with Brand Standards. Without limiting that obligation, you must take the following actions during the Term at your own expense: (1) thorough cleaning, repainting, and redecorating of the School's interior and exterior at intervals we periodically specify and at our direction; (2) interior and exterior repair of the School and the site as needed; and (3) repair or replacement, at our direction, of damaged, worn-out, unsafe, non-functioning, or obsolete Operating Assets at intervals we periodically specify (or, if we do not specify an interval for replacing an Operating Asset, as that Operating Asset needs to be replaced in order to provide services required to be offered by BIG BLUE Swim Schools in compliance with Brand Standards).
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Big Blue Swim School does not explicitly define "Operating Assets" within the provided excerpts. However, the document does refer to 'Operating Assets' in the context of franchisee obligations and franchisor rights. Specifically, franchisees are required to maintain the condition and appearance of their school, site, and Operating Assets according to Big Blue Swim School's Brand Standards. This includes cleaning, repainting, redecorating, and repairing the school, as well as repairing or replacing damaged, worn-out, unsafe, non-functioning, or obsolete Operating Assets.
Big Blue Swim School also retains certain rights regarding Operating Assets. For example, the franchisor may designate approved suppliers for Operating Assets, and franchisees may be required to purchase or lease these assets only from those approved suppliers. The franchisor also has the right to inspect the Operating Assets at the school. Furthermore, if Big Blue Swim School elects to purchase the assets of a franchised location, the purchase may include the Operating Assets.
While the FDD excerpts do not provide a precise definition, the references suggest that 'Operating Assets' encompass the tangible items necessary to operate a Big Blue Swim School, such as equipment, fixtures, and other physical resources used in providing swim lessons and related services. A prospective franchisee should seek clarification from Big Blue Swim School on what specifically constitutes 'Operating Assets' to fully understand their obligations for maintenance, repair, replacement, and potential purchase by the franchisor.