factual

What is the effect of Tenant's operations at the Premises for a Big Blue Swim School?

Big_Blue_Swim_School Franchise · 2025 FDD

Answer from 2025 FDD Document

S FOR BIG BLUE SWIM SCHOOL FRANCHISES**

The following provisions must be inserted into the lease for the School you will operate under the "BIG BLUE SWIM SCHOOL®" brand (the "Lease"). You may add this language via a rider or addendum to your Lease as long as the rider or addendum is signed by both the tenant and the landlord. Please send us a copy of the signed Lease and any riders or addenda.

REQUIRED LANGUAGE:

  • A. During the Term of the franchise agreement (the "Franchise Agreement") between Tenant and BIG BLUE SWIM SCHOOL FRANCHISING, LLC ("BBSS"), Tenant will use the premises only to operate a BIG BLUE Swim School.
  • B. Landlord agrees that BBSS, or a Franchisee of the BBSS Franchise System selected by BBSS, shall have the right to receive an assignment of this Lease upon transfer, termination or expiration of the Franchise Agreement between BBSS and Tenant, d/b/a BIG BLUE Swim School. Upon such transfer, termination or expiration of said Franchise Agreement, Landlord shall promptly execute an acknowledgement of and consent to the assignment of the Lease.
  • C. Landlord will send to BBSS copies of all default notices, and all notices of Landlord's intent to terminate the Lease (or any rights of Tenant under the Lease) or evict Tenant from the leased premises, simultaneously with sending such notices to Tenant. Such notice shall be delivered to BBSS in writing by overnight delivery by FedEx or other nationally-recognized overnight courier. Landlord and Tenant hereby acknowledge and agree that BBSS has the right, but is under no obligation, to cure any deficiency under the Lease, if Tenant should fail to do so, within (i) fifteen (15) days after Franchisor's receipt of such notice as to monetary defaults or (ii) thirty (30) days after Franchisor's receipt of such notice as to non-monetary defaults. Such copies must be sent to:

BIG BLUE SWIM SCHOOL FRANCHISING, LLC

112 Krog Street NE, Suite D-135 Atlanta, Georgia 30307 Attn: President

D. Consent to Collateral Assignment to Franchisor; Disclaimer.

Source: Item 22 — CONTRACTS (FDD pages 75–76)

What This Means (2025 FDD)

According to the 2025 Big Blue Swim School Franchise Disclosure Document, the tenant is required to use the premises solely for operating a Big Blue Swim School during the term of the franchise agreement. This means the franchisee cannot conduct any other type of business from the location without violating the agreement. This restriction ensures that the brand is consistently represented and that the location is dedicated to providing Big Blue Swim School's services.

Big Blue Swim School also has specific rights regarding the lease of the premises. The landlord must send copies of all default notices and notices of intent to terminate the lease to Big Blue Swim School. This provision allows Big Blue Swim School the option, but not the obligation, to cure any defaults under the lease if the franchisee fails to do so. Specifically, Big Blue Swim School has fifteen days to cure monetary defaults and thirty days to cure non-monetary defaults after receiving notice. This protects Big Blue Swim School's interest in maintaining the franchise location and ensures continuity of operations.

Furthermore, the lease agreement includes an acknowledgement that the tenant's rights to operate a Big Blue Swim School and use its trademarks are solely based on the franchise agreement. This clarifies that the franchisee's rights are contingent upon maintaining a valid franchise agreement with Big Blue Swim School. Upon the transfer, termination, or expiration of the franchise agreement, Big Blue Swim School has the right to receive an assignment of the lease, or to assign it to another franchisee selected by them. This provision ensures that Big Blue Swim School can maintain a presence in the location even if the original franchisee is no longer operating the business. Big Blue Swim School or its affiliates also have the right to enter the premises to make necessary modifications or cure any default under the Franchise Agreement or Lease at any time and without prior notice to the Landlord.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.