Is the initial franchise fee for Big Blue Swim School refundable?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay us a $50,000 initial franchise fee in a lump sum when you sign your Franchise Agreement. It is not refundable under any circumstances.
The development fee generally is not refundable under any circumstances. If you sign the DRA, pay the development fee, and then choose for any reason not to perform (in which case we terminate the DRA), we have the right to keep the entire development fee and need not return any money to you. However, if we exercise our Qualified Site Lease Rights described in Item 12 and you then elect to develop one less BIG BLUE Swim School in your development territory, we will refund to you the pro rata portion of the development fee allocable to the School that is the subject of the Qualified Site Lease Rights.
Source: Item 5 — INITIAL FEES (FDD pages 12–13)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, the initial franchise fee of $50,000 is generally not refundable. Specifically, the FDD states that the initial franchise fee paid when signing the Franchise Agreement is not refundable under any circumstances. This means that once a prospective franchisee signs the agreement and pays the $50,000, they will not receive a refund, regardless of whether they proceed with opening the Big Blue Swim School.
However, there are some fees associated with the Development Rights Agreement (DRA) that may be refundable under specific conditions. The development fee, which covers the initial franchise fee for the first school and deposits for subsequent schools, is generally not refundable. If a franchisee signs the DRA, pays the development fee, and then chooses not to proceed, Big Blue Swim School has the right to keep the entire development fee.
There is an exception: if Big Blue Swim School exercises its Qualified Site Lease Rights and the franchisee then elects to develop one less Big Blue Swim School in their territory, a pro rata portion of the development fee allocable to the school that is the subject of the Qualified Site Lease Rights will be refunded. This exception provides a limited circumstance where a portion of the development fee could be returned to the franchisee. It is important for prospective franchisees to understand these conditions and consider them carefully before signing any agreements and paying fees to Big Blue Swim School.