What is the definition of 'Gross Revenue' for a Big Blue Swim School franchise?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
th our prior approval), and (ii) the amount of any credits the School provides in accordance with the terms and conditions set forth in the Operations Manual.
Each charge or sale upon credit will be treated as a sale for the full price on the day the charge or sale is made, irrespective of when you receive payment (whether full or partial, or at all) on that sale. Revenue from gift/loyalty/stored-value/affinity "cards" and similar items we approve for offer and sale at BIG BLUE Swim Schools, whether maintained on an App, on another electronic medium, or in another form (together, "Loyalty Program Media"), is included in Gross Revenue when the Loyalty Program Media are used to pay for services and products (although we may collect our fees due on that revenue when the Loyalty Program Media are acquired by the customer).
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School FDD, gross revenue includes the full price of each credit charge or sale on the day it is made, regardless of when payment is received, whether in full, partially, or not at all. This means that even if a customer pays with a credit card or uses a payment plan, Big Blue Swim School calculates the revenue as if it were a cash sale on the transaction date.
Gross revenue also includes revenue from gift, loyalty, stored-value, and affinity cards, or similar items that Big Blue Swim School approves. This revenue is counted when these loyalty program media are used to pay for services and products. However, Big Blue Swim School may collect its fees due on that revenue when the loyalty program media are initially acquired by the customer.
Franchisees need to obtain written approval from Big Blue Swim School for any coupons or loyalty program media they propose to issue or redeem, including their form, content, and procedures. Big Blue Swim School retains the right to grant or withhold this approval at its discretion. This policy ensures that all promotional activities align with the brand's standards and financial protocols.