Can a Big Blue Swim School franchisee loan money to an employee of a Competitive Business?

According to the 2025 Big Blue Swim School FDD, a franchisee is prohibited from directly or indirectly loaning money or any other thing of value to any Competitive Business or any owner, director, officer, manager, or employee of any Competitive Business. A Competitive Business is defined as any business that provides swim lessons, swim skills, or swim activities for children ranging in age from three months to twelve years old, or any business granting franchises or licenses to others to operate that type of business, other than a Big Blue Swim School. This restriction applies regardless of where the Competitive Business is located or operating.

This restriction is put in place to protect the Big Blue Swim School brand and prevent franchisees from supporting competing businesses. By prohibiting franchisees from providing financial assistance to competitors, Big Blue Swim School aims to maintain its competitive edge and ensure that franchisees are fully committed to the success of their own Big Blue Swim School franchise.

For a prospective franchisee, this means they must avoid any financial involvement with businesses that compete with Big Blue Swim School. This includes not only direct competitors but also individuals working for those competitors. Failure to comply with this restriction could result in a breach of the franchise agreement and potential legal consequences. Franchisees should be diligent in ensuring they do not violate this clause, even inadvertently, through indirect financial support.

This type of restriction is common in franchising to prevent conflicts of interest and protect the brand. Big Blue Swim School franchisees should be aware of this restriction and ensure they do not violate it. Franchisees should seek legal counsel if they are unsure whether a particular activity would violate this restriction.