factual

Can a Big Blue Swim School franchisee proceed with a site that has not been accepted by the franchisor?

Big_Blue_Swim_School Franchise · 2025 FDD

Answer from 2025 FDD Document

You must locate, evaluate, and select each School's site. You must give us all information and materials we request to assess each proposed School site. We will not search for or select the site for you. However, using local commercial real estate brokers, we may propose potential School sites for your consideration in your Site Selection Area (under the Franchise Agreement) or Territory (under the Development Rights Agreement). Proposal of a School's site will be based on our then-current criteria for BIG BLUE Swim School sites, including population density and other demographic characteristics, visibility, traffic flow, competition, accessibility, ingress and egress, size, and other physical and commercial characteristics.

We will review potential BIG BLUE Swim School sites that you identify within the Territory and may, but have no obligation to, visit the Territory once (for no additional fee) to review potential sites for each BIG BLUE Swim School to be constructed and developed under the DRA. We have the right to require you to reimburse our out-of-pocket expenses for each site visit after the first per-Swim School visit. We have the right to condition our acceptance of a proposed site, or a proposed site visit, on your first sending us complete site reports and other materials (including photographs and digital recordings) we request. We agree to use reasonable efforts to review and accept (or not accept) sites you propose within 30 days after we receive all requested information and materials. You may not proceed with a site that we have not accepted.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–51)

What This Means (2025 FDD)

According to Big Blue Swim School's 2025 Franchise Disclosure Document, a franchisee cannot proceed with a site that has not been accepted by the franchisor. The FDD states that the franchisee is responsible for locating, evaluating, and selecting the site for their swim school. While Big Blue Swim School may propose potential sites based on their criteria, the franchisee must provide all necessary information for the franchisor to assess the proposed location. Big Blue Swim School will review the potential sites and use reasonable efforts to either accept or reject the proposed site within 30 days of receiving all required information.

This process ensures that each Big Blue Swim School location meets the franchisor's standards for success, considering factors such as population density, visibility, traffic flow, and accessibility. By requiring franchisor approval, Big Blue Swim School aims to maintain consistency and brand quality across all franchise locations. This also protects the franchisee from investing in a location that the franchisor deems unsuitable, potentially saving them from financial losses.

The franchisee bears the responsibility of finding a suitable location and providing the necessary information for the franchisor's review. This collaborative approach, where the franchisee identifies the site but the franchisor retains the right of approval, is a common practice in franchising. It balances the franchisee's local knowledge with the franchisor's broader experience and brand standards. Failing to secure an acceptable site within 210 days of the Franchise Agreement's effective date can lead to termination of the agreement, further emphasizing the importance of site selection.

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.