What is the initial term length of the License Agreement for Big Blue Swim School?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Big Blue IP licenses us to use these Marks and related intellectual property, and to authorize franchisees to use them in operating BIG BLUE Swim Schools, under a Trademark, Copyright, and Know-How License Agreement effective August 28, 2018 (the "License Agreement"). The License Agreement's initial term is 20 years; we have the right to renew the License Agreement for 3 successive 10-year terms. We have the right to terminate the License Agreement at any time. Big Blue IP may terminate the License Agreement immediately if we breach the License Agreement and fail to cure the breach within 30 days after receiving written notice from Big Blue IP. When the License Agreement terminates or expires, we must stop using and sublicensing the Marks and related intellectual property. However, any BIG BLUE Swim School franchisee that has been authorized to use the Marks in its franchise may continue using the Marks until that franchisee's franchise agreement, and any permitted successor franchise agreement, expire or are terminated, but only if the franchisee continues to comply with its obligations in the franchise agreement and any permitted successor franchise agreement during their remaining terms. No other agreement limits our right to use or sublicense any Mark (whether we own them or Big Blue IP licenses them for use in operating BIG BLUE Swim Schools).
Source: Item 13 — TRADEMARKS (FDD pages 55–58)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, the Trademark, Copyright, and Know-How License Agreement, effective August 28, 2018, has an initial term of 20 years. This agreement allows Big Blue IP to license the use of trademarks and related intellectual property to the company, which in turn authorizes franchisees to operate Big Blue Swim School locations.
Following the initial 20-year term, Big Blue IP has the right to renew the License Agreement for three successive 10-year terms. However, Big Blue IP also retains the right to terminate the License Agreement at any time if the company breaches the agreement and fails to rectify the breach within 30 days of receiving written notice.
Upon termination or expiration of the License Agreement, the company must cease all use and sublicensing of the Marks and related intellectual property. However, there is an exception for existing Big Blue Swim School franchisees. Franchisees authorized to use the Marks can continue to do so until their franchise agreement, including any permitted successor agreements, expires or is terminated, provided they continue to meet their obligations under those agreements.