What are some examples of costs covered by the MSC Fee for Big Blue Swim School franchisees?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
We may charge you and other BIG BLUE Swim Schools (or cause BIG BLUE Swim Schools to be charged) an administrative fee, not to exceed two percent (2%) of the School's Gross Revenue, payable on or before the Payment Day we specify for the preceding Calculation Period we specify, to support the MSC's operation, including staffing, equipment, and technology (the "MSC Fee"). The purpose of the MSC Fee is to cover, and/or reimburse us or our designee for, the actual costs of operating the MSC. The MSC Fee is separate from the Royalty, Brand Fund contribution (defined in Section 13.B below), Software License Fee, and other fees and charges due under this Agreement. While we or our designee may control use of the MSC Fee, the MSC Fee will not be used to pay any of our general operating costs, except for salaries for MSC staff and other actual costs to administer and operate the MSC*.*
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, franchisees must pay an MSC Fee to support the operation of the Member Services Center (MSC). This fee cannot exceed two percent of the school's gross revenue.
The MSC Fee is intended to cover the actual costs of operating the MSC, including staffing, equipment, and technology. The MSC provides services such as scheduling free trial lessons, reserving lesson times, handling customer inquiries, resolving complaints, and maintaining a customer database with management reports for franchisees. The MSC Fee is separate from other fees such as the Royalty, Brand Fund contribution, and Software License Fee.
Big Blue Swim School has the right to implement, operate, and maintain the MSC for the benefit of all Big Blue Swim School locations. Franchisees are required to use the MSC and comply with brand standards for participation. However, Big Blue Swim School assumes no direct liability regarding the MSC's maintenance, direction, or administration and has no obligation to ensure that each swim school benefits proportionally from the MSC. Big Blue Swim School can also discontinue the MSC at any time at its sole discretion.