What is the dependency between site acceptance and area of protection determination for a Big Blue Swim School?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
You will receive an Area of Protection around your School. We will identify and describe the Area of Protection in the Franchise Agreement before you sign it unless the School's site has not yet been found and secured. In that case, we will define the Area of Protection after the site
has been found and secured within the Site Selection Area. We expect the Area of Protection to be approximately 10 to 15 minutes from your site (if already found when you sign the Franchise Agreement) or from the center of your proposed trade area (if the site has not been found as of when you sign the Franchise Agreement). We will determine the Area of Protection's precise contours based on demarcation points such as streets, highways, and other markers*.* We have the right to modify the Area of Protection during the franchise term only if the School relocates.
During the franchise term, we and our affiliates will not own or operate, or allow another franchisee or licensee to own or operate, another BIG BLUE Swim School (operating the Swim School Concept) having its physical location within the Area of Protection. This means that you have exclusive rights in the Area of Protection for the Swim School Concept operating under the Marks. Continuation of your franchise and exclusivity does not depend on your achieving a certain sales volume, market penetration, or other contingency.
Source: Item 12 — TERRITORY (FDD pages 51–55)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, the determination of the Area of Protection is contingent on site acceptance. Specifically, if a site has not been secured when the Franchise Agreement is signed, Big Blue Swim School will define the Area of Protection after the site has been found and secured within the Site Selection Area. This means that a franchisee cannot know the exact boundaries of their protected territory until a specific location for the swim school is approved.
For franchisees acquiring development rights, each proposed site for a Big Blue Swim School must be acceptable to the franchisor. Only after a proposed site is accepted and secured will Big Blue Swim School determine the Area of Protection for that school, applying their then-current standards for sites and Areas of Protection. This indicates that the Area of Protection is not predetermined based on the territory outlined in the Development Rights Agreement (DRA) but is instead established on a site-by-site basis as locations are secured.
This approach ensures that the Area of Protection is relevant to the actual location of the Big Blue Swim School, taking into account local market conditions and competitive factors. However, it also introduces an element of uncertainty for the franchisee, as the precise extent of their protected territory is not known until the site is approved. Prospective franchisees should carefully consider this dependency and discuss with Big Blue Swim School how Areas of Protection are determined in practice, including the factors that influence their size and shape.