Are Big Blue Swim School franchisees allowed to assign released claims to other entities?

According to the 2025 Big Blue Swim School Franchise Disclosure Document, franchisees are not allowed to assign released claims to other entities. The FDD states that the franchisee covenants not to sue Big Blue Swim School on any claim released and represents that they have not assigned any claim released to any individual or entity not bound by the release paragraph. This means a Big Blue Swim School franchisee cannot transfer their rights regarding any released claims to another party.

This restriction is in place to ensure that all parties involved in the franchise agreement are bound by the terms of the release, preventing future legal complications. The release covers a wide range of potential claims, including those related to the performance of obligations under the Franchise Agreement, the offer and grant of the franchise, and the relationship between the franchisee and Big Blue Swim School.

This provision protects Big Blue Swim School from dealing with third parties who might assert claims based on the original franchisee's rights. It is a standard practice in franchising to include such clauses to maintain control over legal matters and ensure consistency in dispute resolution. Franchisees should carefully consider the implications of this restriction before signing the franchise agreement, as it limits their ability to transfer potential claims to other parties.