Does a Big Blue Swim School developer have the right to renew or extend their development rights?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| v. Choice of forum | 22.H of Franchise Agreement | Subject to arbitration requirements, litigation must be (with limited exception) in courts closest to where we (or then-current franchisor), have our principal business address when the action is commenced (it currently is in Atlanta, Georgia) (subject to applicable state law). |
| w. Choice of law | 22.G of Franchise Agreement 14(a) of SaaS Agreement | Federal law and Georgia law apply under Franchise Agreement (subject to applicable state law). |
| Georgia law governs SaaS Agreement (subject to applicable state law). | ||
| Provision | Section in Development Rights Agreement | Summary |
| a. Length of the franchise term | 6 | Term expires on date when final BIG BLUE Swim School under Schedule opens for business or is scheduled to open for business (whichever is earlier). |
| b. Renewal or extension of the | Not applicable | You have no right to renew or extend development rights. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 61–69)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, developers do not have the right to renew or extend their development rights. The Development Rights Agreement term expires when the final Big Blue Swim School under the schedule opens for business or is scheduled to open, whichever occurs first.
This means that a developer's rights are limited to the period required to open the agreed-upon number of Big Blue Swim School locations within their territory. Once those locations are operational or scheduled to be, the development rights expire, and there is no provision for extending this period.
This is a crucial point for potential developers to consider. They must be prepared to meet the development schedule outlined in their agreement, as failure to do so could result in the loss of their development rights. Unlike a standard franchise agreement, which often includes renewal options, the Big Blue Swim School Development Rights Agreement does not offer this flexibility. Therefore, careful planning and execution are essential for developers to maximize their investment and opportunity within the Big Blue Swim School system.