Does a Big Blue Swim School franchisee have the right to renew or extend their development rights?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| v. Choice of forum | 22.H of Franchise Agreement | Subject to arbitration requirements, litigation must be (with limited exception) in courts closest to where we (or then-current franchisor), have our principal business address when the action is commenced (it currently is in Atlanta, Georgia) (subject to applicable state law). |
| w. Choice of law | 22.G of Franchise Agreement 14(a) of SaaS Agreement | Federal law and Georgia law apply under Franchise Agreement (subject to applicable state law). |
| Georgia law governs SaaS Agreement (subject to applicable state law). | ||
| Provision | Section in Development Rights Agreement | Summary |
| a. Length of the franchise term | 6 | Term expires on date when final BIG BLUE Swim School under Schedule opens for business or is scheduled to open for business (whichever is earlier). |
| b. Renewal or extension of the | Not applicable | You have no right to renew or extend development rights. |
| term | ||
| c. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 61–69)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, franchisees do not have the right to renew or extend their development rights. The Development Rights Agreement term expires when the final Big Blue Swim School under the schedule opens for business or is scheduled to open, whichever occurs earlier. This means that once a franchisee has developed all the locations within their territory according to the agreed-upon schedule, their development rights terminate.
This lack of renewal or extension rights has significant implications for potential franchisees. It means that franchisees cannot count on continuing to expand their Big Blue Swim School presence beyond the initially agreed-upon territory and schedule. If a franchisee successfully develops their territory and wishes to continue growing with the brand, they would need to negotiate a new development agreement, which may or may not be granted.
This is a notable point for prospective franchisees to consider, as it differs from some franchise systems that offer renewal or extension options for development rights, allowing successful developers to further expand their footprint within the brand. Big Blue Swim School's approach creates a defined endpoint for development rights, which could limit long-term growth opportunities for franchisees within the system.