What is the duration of the Guaranty and Assumption of Obligations for a Big Blue Swim School franchise?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) before the transfer's proposed effective date, the transferee and each of its owners (if the transfer is of the franchise rights granted by this Agreement), or you and your owners (if the transfer is of a controlling ownership interest in you or in an Entity owning a controlling ownership interest in you), if we so require, sign our then-current form of franchise agreement and related documents (including a Guaranty and Assumption of Obligations), any and all of the provisions of which may differ materially from any and all of those contained in this Agreement, provided, however, that (i) the term of the new franchise agreement signed will equal the unexpired portion of this Agreement's Term, (ii) the Royalty, Software License Fee, and Brand Fund contribution levels specified in this Agreement will be substituted into the then-current form of franchise agreement that you sign for the balance of the initial franchise term (i.e., the unexpired portion of the Term), and (iii) the Area of Protection defined in this Agreement will be substituted into the then-current form of franchise agreement that you sign for the balance of the initial franchise term (i.e., the unexpired portion of the Term);
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the duration of the Guaranty and Assumption of Obligations for a Big Blue Swim School franchise is tied to the unexpired portion of the franchise agreement's term. This becomes relevant when a franchisee transfers their franchise rights to a new owner.
When a transfer occurs, Big Blue Swim School may require the transferee to sign a new franchise agreement, which includes a Guaranty and Assumption of Obligations. However, the term of this new franchise agreement will only last for the remaining duration of the original agreement. This ensures that the new franchisee is only bound by the terms for the time left on the initial agreement.
For example, if a franchisee transfers their Big Blue Swim School franchise with five years remaining on the original term, the new franchise agreement and the associated Guaranty and Assumption of Obligations will also be for five years. This condition protects the franchisee by ensuring the terms of the original agreement remain in place for its defined duration, even with a transfer of ownership.