What happens if the franchisee prefers a site that Big Blue Swim School does not recommend?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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. You must evaluate and ultimately approve the selection of the School's site. (Franchise Agreement—Section 4.B;
Development Rights Agreement—Section 5) We do not own locations for lease to franchisees. Under the DRA, we first must accept each new site you propose for each new BIG BLUE Swim School. Our then-current standards for sites will apply.
We have the right to terminate the Franchise Agreement (and, in limited circumstances, the Development Rights Agreement) if you reject a School site the location and physical and other characteristics of which, and the proposed commercial-lease terms for which (as encompassed in a lease letter of intent that we or your third-party vendor negotiated or reviewed), were accepted by our real-estate committee (a "Qualified Site"). (Franchise Agreement—Section 4.B; Development Rights Agreement—Section 5) There is no refund of any initial franchise fee or development fee upon such termination.
If an acceptable School site is not found and secured within 210 days after the Franchise Agreement's effective date (subject to any permitted extension), then we have the right to terminate the Franchise Agreement. The initial franchise fee is not refundable. (Franchise Agreement—Sections 4.B and 4.C) If we and you (or your affiliate) are parties to a DRA, the negotiated deadlines specified in the DRA will supersede certain deadlines specified above. (DRA—Section 5)
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, franchisees are responsible for locating, evaluating, and selecting their school site. While Big Blue Swim School may propose potential sites based on their criteria, the franchisee ultimately makes the final decision.
However, Big Blue Swim School retains the right to reject any site that doesn't meet their standards. If a franchisee insists on a site that Big Blue Swim School does not recommend due to incompatibility with certain factors, Big Blue Swim School may require the franchisee to acknowledge in writing that the site is accepted but not recommended. This acknowledgement serves as a formal recognition that the franchisee is proceeding against the franchisor's advice, potentially impacting the school's success.
Furthermore, Big Blue Swim School has the right to terminate the Franchise Agreement if the franchisee rejects a site that Big Blue Swim School's real estate committee has accepted as a "Qualified Site," including its location, physical characteristics, and lease terms. In the event of such termination, the initial franchise fee is not refundable. This clause underscores the importance of aligning site selection with Big Blue Swim School's approved criteria and highlights the financial risk of pursuing a non-approved location.
If a mutually acceptable site cannot be secured within 210 days after the Franchise Agreement's effective date (subject to any permitted extension), Big Blue Swim School has the right to terminate the Franchise Agreement, and the initial franchise fee is not refundable. This provision emphasizes the need for franchisees to work collaboratively with Big Blue Swim School to find and secure a suitable location within a reasonable timeframe to avoid potential termination and loss of the initial investment.