What happens to Exhibit A of the Big Blue Swim School agreement once a site is accepted?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
or the School within the exclusive geographical area described in Exhibit A (the "Site Selection Area") must be found and secured. The timeframe during which the School's site must be located, accepted, and secured within the Site Selection Area (the "Site Selection Period") will expire upon the earliest of (a) our acceptance of the School's site and Lease and giving you an amended and restated Exhibit A, (b) this Agreement's termination, or (c) two hundred ten (210) days after the Effective Date.
- 4.B.2 We may (but have no obligation to) visit the Site Selection Area to review potential School sites. Using local commercial real estate brokers, we may recommend potential School sites for your consideration. Recommendation of a School's site will be based on our then-current criteria for BIG BLUE Swim School sites, including, without limitation, population density and other demographic characteristics, visibility, traffic flow, competition, accessibility, ingress and egress, size, and other physical and commercial characteristics.
- 4.B.3 We will not unreasonably withhold our acceptance of a site if, in our experience and based on the factors outlined above, the proposed site is not inconsistent with sites that we regard as favorable or that otherwise have been successful sites in the past for BIG BLUE Swim Schools. However, we have the absolute right to reject any site not meeting our criteria or to require you to acknowledge in writing that a site you prefer is accepted but not recommended due to its incompatibility with certain factors that bear on a site's suitability as a location for a BIG BLUE Swim School.
- 4.B.4 You must evaluate and ultimately approve the selection of the School's site. Our recommendation and acceptance of a site indicates only that we believe the site is not inconsistent with sites that we regard as favorable or that otherwise have been successful sites in the past for BIG BLUE Swim Schools. Applying criteria appearing effective with other sites might not accurately reflect the potential of all sites, and demographic or other factors included in or excluded from our criteria could change, altering a site's potential.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, after the franchisor accepts the franchisee's site, Big Blue Swim School will provide the franchisee with an amended and restated Exhibit A. Exhibit A describes the exclusive Site Selection Area. If the School's address is unknown as of the Effective Date, Big Blue Swim School and the franchisee will identify the School's physical address in the blank on Exhibit A after the franchisee finds and secures the site.
Exhibit A also contains information regarding the Area of Protection. If the franchisee has not found and secured the School's site as of the Effective Date, Big Blue Swim School and the franchisee will define the Area of Protection in the blank on Exhibit A after the franchisee finds and secures the site. Big Blue Swim School may modify the Area of Protection during the Franchise Agreement term with prior written permission.
This means that the initial Exhibit A, which likely contains a general geographical area for site selection, is updated to reflect the specific, approved location of the Big Blue Swim School franchise. It also defines the franchisee's Area of Protection, which dictates the geographical area where the franchisor will not open another Big Blue Swim School. This updated exhibit becomes a key part of the franchise agreement, clarifying the franchisee's exclusive territory and operational boundaries.