What are all the fees Big Blue Swim School franchisees must pay, as detailed across Items 5, 6, and 7?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of Fee(1) | Amount(2) | Due Date | Remarks |
| Brand Fund Contributions | Up to 3% of School’s Gross Revenue(3) during each Calculation Period(4); we currently charge 2% of School’s weekly Gross Revenue | Due within certain number of days after end of each Calculation Period (4) | |
| Member Services Center Fee (“MSC Fee”) | Up to 2% of School’s Gross Revenue(3) during each Calculation Period(4); we currently do not charge this fee | Due within certain number of days after end of each Calculation Period (4) | We have the right, directly or through a |
| designated source (including an affiliate), to | |||
| develop, implement, operate, maintain, and | |||
| improve a member services center for th | |||
| benefit of all BIG BLUE Swim Schools and | |||
| which all BIG BLUE Swim Schools mus | |||
| use. The MSC might perform various services | |||
| for BIG BLUE Swim Schools and their | |||
| customers, including scheduling free tria | |||
| lessons and reserving lesson times for | |||
| helping resolve customer complaints and | |||
| concerns, and maintaining a customer | |||
| database that provides management reports to | |||
| franchisees. We currently do not operate an | |||
| MSC or charge this fee. | |||
| Podium | $285 per month; optional purchase of a telephone ranging from $30-$160 | Monthly | Podium is our mandatory customer relations software. You will pay us monthly with the second invoice of the month. We have the right to increase this fee to the extent the vendor increases its charge to us. These amounts are a pass-through to you; we do not upcharge the vendor’s fees. You may (but have no obligation to) purchase a telephone for your School. |
| Uberall | $20 per month | Monthly | Uberall is our mandatory social posting and |
| listing management service. You will pay us | |||
| monthly with the second invoice of the | |||
| month. We have the right to increase this fee | |||
| to the extent the vendor increases its charge to | |||
| us. These amounts are a pass-through to you; | |||
| we do not upcharge the vendor’s fees. | |||
| Column 1 | Column 2 | Column 3 | Column 4 |
| --- | --- | --- | --- |
| Type of Fee(1) | Amount(2) | Due Date | Remarks |
| Email Licenses | 5 licenses are included free of charge; for each license over the first 5, you must pay us $6 per month for a basic license and $12 a month for a standard license | Monthly | This is an optional charge. If you wish to have more than 5 email licenses for your School, we will bill you in the same manner as we bill you for your royalty payments. We may increase these charges to no more than $10 per month for a basic license and $20 per month for a standard license. |
| Local Marketing Spend | 6% of School’s quarterly Gross Revenue | Quarterly | |
| Cooperative Contributions(5) | An amount we specify up to 4% of School’s Gross Revenue(3) during each Calculation Period(4) | As specified | We have not yet formed any Cooperatives and do not yet require Cooperative contributions. Footnotes 5 and 6 below describe your local advertising obligations. |
| Franchise Agreement Preparation Fee | $2,500 | When you sign a franchise agreement for a subsequent location | |
| Successor Franchise Fee | $5,000 | When you sign successor franchise agreement (if you have that right) | |
| Transfer of Franchise Rights or Controlling Ownership Interest in Franchisee | $25,000 (or $12,500 if proposed transfer is among your existing owners, immediate family members, or an entity you control) | Upon transfer | |
| Column 1 | Column 2 | Column 3 | Column 4 |
| -------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| Type of Fee(1) | Amount(2) | Due Date | Remarks |
| Transfer of Non Controlling Ownership Interest in Franchisee | $5,000 | Upon transfer | |
| Ongoing and Supplemental Training and Assistance | Our then-current fee for ongoing and supplemental training and assistance; not to exceed $500 per trainer per day or $2,000 in total if at our location and not to exceed $750 per trainer per day plus our expenses if elsewhere | As incurred | We have the right to charge you for ongoing and supplemental training and assistance that you request or that we determine you need to address issues specific to your School. |
| Retraining of Managers | Our then-current retraining fee; not to exceed $500 per trainer per day or $2,000 in total if at our location and not to exceed $750 per trainer per day plus our expenses if elsewhere | As incurred | Due if (i) your general manager or assistant manager fails to complete initial training program, or (ii) we must train their replacements. |
| Periodic Meeting / Convention | Will vary under circumstances (not to exceed $2,500 per person; does not include your actual out-of-pocket attendance costs paid to third parties) | As incurred | You (or your designated representative we approve) must at our request attend a periodic meeting of all BIG BLUE Swim School franchisees and pay an attendance fee. We will charge this fee even if you do not attend. |
5.A. Initial Franchise Fee
You must pay us a Fifty Thousand Dollar ($50,000) initial franchise fee (the "Initial Franchise Fee") concurrently with your execution of this Agreement. The Initial Franchise Fee is not refundable under any circumstances. If you signed this Agreement pursuant to a Development Rights Agreement and this Agreement is for your second or subsequent BIG BLUE Swim School, your Initial Franchise Fee will be Forty Thousand Dollars ($40,000). We will credit toward the Initial Franchise Fee any deposit you (or an affiliate) paid us under a Development Rights Agreement.
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, franchisees must pay several fees, including both initial and ongoing costs. The initial franchise fee is $50,000, but it is reduced to $40,000 for subsequent locations if the franchisee has a Development Rights Agreement. This fee is non-refundable.
Ongoing fees include a brand fund contribution of up to 3% of the school's gross revenue (currently 2%), and a potential Member Services Center Fee of up to 2% of gross revenue, though this is currently not charged. Franchisees must also pay $285 per month for Podium customer relations software and $20 per month for Uberall social posting and listing management. Additionally, there is a local marketing spend requirement of 6% of the school's quarterly gross revenue. Other fees may include a Franchise Agreement Preparation Fee of $2,500 for subsequent locations, a Successor Franchise Fee of $5,000, and fees for transferring ownership, ranging from $5,000 to $25,000 depending on the type of transfer.
Additional training and assistance may incur fees not exceeding $500 to $750 per trainer per day, plus expenses, and retraining of managers carries similar costs. Periodic meeting or convention fees can reach up to $2,500 per person, excluding personal attendance costs. Franchisees may also incur costs for email licenses exceeding the initial 5 provided, at $6 to $12 per license per month, and potential cooperative contributions up to 4% of gross revenue, although these are not currently required. These fees contribute to Big Blue Swim School's revenue and support ongoing services, training, and brand development.
Prospective franchisees should carefully consider these fees and their potential impact on profitability. Understanding the conditions under which these fees are charged and planning for these expenses is crucial for financial success with a Big Blue Swim School franchise. It is also important to note that some fees, such as the Member Services Center Fee and Cooperative Contributions, are not currently charged but could be implemented in the future, impacting the franchisee's financial obligations.