When is the Franchise Agreement Preparation Fee for a Big Blue Swim School due?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
Source: Item 6 — OTHER FEES (FDD pages 13–25)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, the Franchise Agreement Preparation Fee is $2,500. This fee is due when a franchisee signs a franchise agreement for a subsequent Big Blue Swim School location.
This fee applies to existing franchisees who are expanding and signing agreements for additional locations. It does not apply to the initial franchise agreement for the first location. This fee is in addition to any other fees associated with opening a new Big Blue Swim School, such as the initial franchise fee and construction costs.
Prospective franchisees should factor this fee into their financial planning if they intend to open multiple Big Blue Swim School locations. Understanding the timing of this fee is crucial for managing cash flow and ensuring sufficient funds are available when signing subsequent franchise agreements.