Can Big Blue Swim School designate exclusive sources for certain items or services?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
u agree that we may allow other BIG BLUE Swim Schools to purchase or lease the Operating Assets or other products or services from those suppliers or distributors without limitation and without compensation to you.
7.D.3 Despite the foregoing, we may limit the number of approved suppliers and distributors with which you may deal, designate sources you must use, and refuse any of your requests for any reason, including, without limitation, because we have already designated an exclusive source (which might be us or one of our affiliates) for a particular item or service or believe that doing so is in the BIG BLUE Swim School network's best interests. You acknowledge that it might be disadvantageous from a cost and service basis to have more than one supplier in a given market area, and that 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. However, we make no guaranty, warranty, or promise that we will obtain the best pricing or most advantageous terms on behalf of BIG BLUE Swim Schools. We also do not guaranty the performance of suppliers and distributors to BIG BLUE Swim Schools. We are not responsible or liable if the products or services provided by a supplier or distributor fail to conform to or perform in compliance with Brand Standards or our contractual terms with the supplier or distributor.
7.D.4 We have the right (without liability) to consult with your suppliers about the status of your account with them and to advise your suppliers and others with whom you, we, our affiliates, and other franchisees deal that you are in default under any agreement with us or our affiliates (but only if we or our affiliate has notified you of such default).
7.E. Computer System
You agree to obtain and use the computer hardware and software, point-of-sale system, communications services and equipment, computer-related accessories, peripheral equipment, tablets, smart phones, web-based scheduling, reservation and payment systems, and other online and digital systems and Apps we periodically specify (the "Computer System"). You must use the Computer System to input and access information about your revenue and operations. You must maintain the Computer System's continuous operation. We will have continuous, unlimited access to all information maintained on the Computer System (excluding matters relating to labor relations and employment practices) and to the content of any BIG BLUE Swim School e-mail accounts we provide you.
We may periodically modify the Computer System's specifications and components. Our modification of Computer System specifications, and/or other technological developments or events, may require you to purchase, lease, or license new or modified computer hardware, software, peripherals, and other components and to obtain service and support for the Computer System. Although we cannot estimate the future costs of the Computer System or required service or support, you must incur the costs to obtain the computer hardware, software, peripherals, and other components comprising the Computer System (and additions and modifications) and required service or support. Within ninety (90) days after we deliver notice to you, you must obtain
the Computer System components we designate and ensure that your Computer System, as modified, is functioning properly.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, Big Blue Swim School has the authority to limit the number of approved suppliers and distributors with whom a franchisee may deal. They can designate specific sources that franchisees must use. This includes the possibility of Big Blue Swim School, or one of its affiliates, being the exclusive source for particular items or services. Big Blue Swim School states that this is in the best interest of the Big Blue Swim School network.
Big Blue Swim School may designate and approve Brand Standards, manufacturers, suppliers, and/or distributors for the Operating Assets and other services and products they authorize for use or sale by Big Blue Swim Schools. Franchisees must purchase or lease all Operating Assets and other services and products they use or sell at the School only according to Big Blue Swim School's Brand Standards and, if they require, only from suppliers or distributors they designate or approve, which may include or be limited to them, certain of their affiliates, and/or other restricted sources.
Big Blue Swim School and/or its affiliates may derive revenue from franchisee purchases and leases, including charging franchisees prices exceeding their costs for services and products they or their affiliates sell. They may also receive promotional allowances, volume discounts, and other amounts paid to them and their affiliates by suppliers that they designate, approve, or recommend for some or all Big Blue Swim School franchisees. Big Blue Swim School and its affiliates may use all amounts received from suppliers, whether or not based on franchisee dealings with them, without restriction for any purposes they and their affiliates deem appropriate.
If a franchisee wants to purchase or lease any Operating Assets or other products or services from a supplier or distributor Big Blue Swim School has not then approved, the franchisee must establish to Big Blue Swim School's reasonable satisfaction that the product or service is of equivalent quality and functionality to the product or service it replaces and the supplier or distributor is reputable, financially responsible, and adequately insured for product liability claims. The franchisee must pay upon request any actual expenses Big Blue Swim School incurs to determine whether or not the products, services, suppliers, or distributors meet their requirements and specifications.