What is the 'Guaranty and Assumption of Obligations' for a Big Blue Swim School franchise?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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The franchisor is Big Blue Swim School Franchising, LLC ("we," "us," or "our"). "You" means the entity to which we grant a franchise and, if applicable, development rights. Your owners must sign our "Guaranty and Assumption of Obligations." This means all of our Franchise Agreement's provisions (Exhibit B) also will apply to your owners.
We are an Illinois limited liability company formed on June 27, 2018. Our principal business address is 112 Krog Street NE, Suite D-135, Atlanta, Georgia 30307. We conduct business primarily under our limited liability company name and the "BIG BLUE SWIM SCHOOL®" trademark and under no other name. We have no predecessors.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 59–61)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School FDD, the owners of a franchise must sign a 'Guaranty and Assumption of Obligations.' This agreement ensures that the owners are also bound by the Franchise Agreement's provisions. This requirement is detailed in Item 1 of the FDD, which defines 'you' as the entity granted the franchise and clarifies that the owners must sign this agreement, making them equally responsible for upholding the terms of the Franchise Agreement.
For a prospective franchisee, this means that as an owner, you are personally guaranteeing the performance of the franchise. This is a common practice in franchising, where franchisors seek to ensure that the individuals behind the business are fully committed and liable for its success and compliance with the franchise agreement. The 'Guaranty and Assumption of Obligations' essentially extends the responsibilities and obligations outlined in the Franchise Agreement to the individual owners, not just the business entity.
Furthermore, Item 23 of the FDD mentions that the franchise agreement and related documents, including the Guaranty and Assumption of Obligations, must be signed for each Big Blue Swim School to be constructed and developed under a Development Rights Agreement. This implies that if a franchisee plans to open multiple locations, each location will require a separate franchise agreement with its own guaranty, ensuring that the owners are fully committed to each individual franchise unit. The FDD also states that the terms of these subsequent agreements may differ substantially from the initial agreement.
In summary, the 'Guaranty and Assumption of Obligations' is a critical document that holds the owners of a Big Blue Swim School franchise personally liable for the franchise's performance and adherence to the Franchise Agreement. Prospective franchisees should carefully review this document with legal counsel to fully understand the implications of this personal guarantee before signing the agreement.