What happens if the Big Blue Swim School franchisee rejects a Qualified Site?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) A Lease must be signed by the end of the Site Selection Period. However, if you cannot sign a Lease by the end of the Site Selection Period despite your diligent efforts to do so, you may request (at no cost to you) two separate thirty (30)-day extensions to sign the Lease. We will not unreasonably deny your request if the reasons for each extension request demonstrate your diligence in the site selection and leasing process. However, these extensions are not available if we exercise our right to terminate this Agreement because you reject a Qualified Site.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School FDD, if a franchisee rejects a Qualified Site, Big Blue Swim School has the right to terminate the Franchise Agreement.
This is a significant risk for prospective franchisees. The franchisee is responsible for evaluating and approving the school's site. Big Blue Swim School may recommend potential sites based on their criteria, but the franchisee has the final say in the selection. However, Big Blue Swim School has the absolute right to reject any site that does not meet their criteria or require the franchisee to acknowledge in writing that a preferred site is accepted but not recommended due to incompatibility with certain factors.
Furthermore, if the franchisee cannot sign a Lease by the end of the Site Selection Period, they may request two separate 30-day extensions. However, these extensions are not available if Big Blue Swim School exercises its right to terminate the agreement because the franchisee rejects a Qualified Site. This clause underscores the importance of aligning with Big Blue Swim School's site selection criteria and the potential consequences of disagreeing with their assessment of a location's suitability.