Can Big Blue Swim School delay the development of a Big Blue Swim School if the franchisee is not operationally prepared?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ollowing sentence is added to the end of Section 22.L. of the Franchise Agreement, as incorporated by reference in Section 12 of the Development Rights Agreement:
To the extent required by Article 33 of the General Business Law of the State of New York, all rights and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this provision that the non-waiver provisions of GBL Sections 687.4 and 687.5 be satisfied.
[Signature Page Follows]
IN WITNESS WHEREOF, the parties have executed and delivered this Rider to be effective as of the Effective Date of the Development Rights Agreement.
| In addition to our rights with respect to proposed BIG BLUE Swim School sites, | |
|---|---|
| we have the right to delay the construction, development, and/or opening of additional BIG BLUE | |
| Swim Schools within the Territory for the time period we deem best if at any time we believe that | |
| such delay is in the best interests of the brand or the franchise network, including for reasons | |
| related to lack of sites that meet our criteria, supply chain issues, or our assessment in our sole | |
| judgment that you (or you |
Source: Item 23 — RECEIPTS (FDD pages 76–278)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, Big Blue Swim School has the right to delay the construction, development, and/or opening of additional swim schools within a territory if they believe it is in the best interest of the brand or franchise network. This includes situations where Big Blue Swim School assesses that the franchisee or their affiliate is not yet operationally, managerially, or otherwise prepared for the construction, development, opening, and/or operation of the additional Big Blue Swim School in full compliance with their standards and specifications. The delay will be for a time period that Big Blue Swim School deems best.
This provision gives Big Blue Swim School significant control over the pace of development, ensuring that new locations meet their standards before opening. For a prospective franchisee, this means that even after securing a territory, the timeline for opening additional locations is subject to Big Blue Swim School's approval of their operational readiness. This could potentially delay revenue generation if the franchisee is not deemed ready, but it also protects the brand's reputation by ensuring consistent quality and standards across all locations.
However, Big Blue Swim School cannot delay development if it will cause the franchisee to breach their development obligations under the Schedule, unless Big Blue Swim School is willing to extend the Schedule proportionately to account for the delay. This clause provides some protection for the franchisee, ensuring that Big Blue Swim School cannot indefinitely delay development without considering the franchisee's contractual obligations. Franchisees should carefully review the development schedule and understand the conditions under which delays can be imposed to assess the potential impact on their investment and business plan.