If Big Blue Swim School debits more than I owe, how will the excess be handled?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to authorize us to debit your business checking or other account automatically for the Royalty, Software License Fee, Brand Fund contribution, MSC Fee, and other amounts due under this Agreement and any related agreement between us (or our affiliates) and you. We will debit your account no later than the Payment Day for the Royalty, Software License Fee, Brand Fund contribution, MSC Fee, and other amounts due. Funds must be available in the account before the Payment Day for withdrawal by electronic transfer. We may require you to obtain, at your expense, overdraft protection for your bank account in an amount we specify. You must reimburse any "insufficient funds" charges and related expenses we incur due to your failure to maintain sufficient funds in your bank account. You may not close this account without first establishing, and notifying us of, a new account that we are authorized to debit as provided in this Section.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the provided excerpts do not specify the procedure Big Blue Swim School will take if they debit more than what is owed from a franchisee's account. However, the FDD does state that Big Blue Swim School requires franchisees to authorize them to automatically debit their business checking account for royalties, software license fees, brand fund contributions, MSC fees, and other amounts due under the agreement.
Furthermore, the franchisee is responsible for maintaining sufficient funds in the account to cover these debits and may be required to obtain overdraft protection. The franchisee is also responsible for reimbursing any insufficient funds charges or related expenses incurred by Big Blue Swim School due to a lack of funds in the franchisee's account. The franchisee cannot close the account without first establishing a new account that Big Blue Swim School is authorized to debit and notifying them of the new account.
To fully understand the process if Big Blue Swim School mistakenly debits an excess amount, a prospective franchisee should ask the franchisor directly about their policies and procedures for handling overpayments or erroneous debits, including how the excess amount will be credited back to the franchisee's account and the timeframe for resolution.