Can Big Blue Swim School designate an exclusive source for a particular item or service?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Despite these procedures, we have the right to limit the number of approved suppliers and distributors, designate sources you must use, and refuse your requests for any reason, including because we already have designated an exclusive source (which might be us or our affiliate) for a particular item or service or believe that doing so is in the BIG BLUE Swim School network's best interest. It might be disadvantageous from a cost and service basis to have more than one supplier in a given market area, and we have the right to consider the impact of any supplier approval on our and our franchisees' ability to obtain the lowest distribution costs and best service. If we approve any supplier or distributor you recommend, we have the right to authorize other BIG BLUE Swim Schools to buy or lease any Operating Assets or other products or services from that supplier or distributor without compensating you.
We restrict your sources of items and services in many cases to protect trade secrets and other intellectual property, help assure quality and a reliable supply of products meeting our standards, achieve better purchase and delivery terms, control third-party use of the Marks, and monitor the manufacture, packaging, processing, sale, and delivery of these items. Besides your purchases from designated or approved suppliers, you generally must purchase products and services meeting our minimum standards and specifications.
We and our affiliate currently are the designated (i.e., only) suppliers of proprietary software for the School's operation (i.e., LESSONBuddy) and creative and implementation services for the School's required public relations and market introduction advertising/promotion program. We currently are approved (but not the only) suppliers of Marketing Materials to advertise and promote the School.
Besides the items and services described above for which we and our affiliate currently are approved or designated suppliers, you currently must acquire the School's furniture, fixtures, equipment, Computer System, point-of-sale system, accounting and bookkeeping system, business software (including background check services, credit card processing services, customer feedback software, customer review mitigation, and recruiting tracking software), worker's compensation support, payroll and employee benefits software, signage, uniforms, chemicals and other supplies, pump, HVAC, pool systems (including the pump room and pump notifications), pool materials (including swim platforms, lane tents, teaching tools, goggles, swim diapers, and swimsuits), building-management systems, marketing (including search engine optimization, digital, print, and email), graphic design services, adaptive swim lessons, lifeguard training, and Loyalty Program Media services only from suppliers we designate or approve.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 29–34)
What This Means (2025 FDD)
According to the 2025 FDD, Big Blue Swim School has the right to designate exclusive sources for particular items or services. Big Blue Swim School can limit the number of approved suppliers and distributors, designate sources franchisees must use, and refuse franchisee requests for any reason, including having already designated an exclusive source for a particular item or service. This exclusive source could be Big Blue Swim School itself or one of its affiliates.
Big Blue Swim School can enforce these restrictions to protect trade secrets and intellectual property, ensure product quality and supply reliability, achieve better purchase and delivery terms, control third-party use of trademarks, and monitor the manufacture, packaging, processing, sale, and delivery of items. Franchisees are generally required to purchase products and services that meet Big Blue Swim School's minimum standards and specifications, even beyond designated or approved suppliers.
Currently, Big Blue Swim School and its affiliates are the only designated suppliers of proprietary software for the School's operation (LESSONBuddy) and creative and implementation services for the School's required public relations and market introduction advertising/promotion program. Big Blue Swim School is an approved (but not the only) supplier of Marketing Materials to advertise and promote the School. Franchisees must acquire various items, such as furniture, fixtures, equipment, computer systems, point-of-sale systems, and pool materials, only from suppliers designated or approved by Big Blue Swim School.