Can Big Blue Swim School inspect a proposed supplier's facilities?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
7.D.2 We may condition our written approval of a supplier or distributor on requirements relating to product quality and safety; third-party lab testing; prices; consistency; warranty; supply-chain reliability and integrity; financial stability; customer relations; frequency, economy, and efficiency of delivery; concentration of purchases; standards of service (including prompt attention to complaints); and other criteria. We have the right to inspect the proposed supplier's or distributor's facilities and to require the proposed supplier or distributor to deliver product samples or items, at our option, either directly to us or to any third party we designate for testing. If we approve a supplier or
distributor you recommend, you agree that we may allow other BIG BLUE Swim Schools to purchase or lease the Operating Assets or other products or services from those suppliers or distributors without limitation and without compensation to you.
7.D.3 Despite the foregoing, we may limit the number of approved suppliers and distributors with which you may deal, designate sources you must use, and refuse any of your requests for any reason, including, without limitation, because we have already designated an exclusive source (which might be us or one of our affiliates) for a particular item or service or believe that doing so is in the BIG BLUE Swim School network's best interests. You acknowledge that it might be disadvantageous from a cost and service basis to have more than one supplier in a given market area, and that we have the right to consider the impact of any supplier approval on our and our franchisees' ability to obtain the lowest distribution costs and best service. However, we make no guaranty, warranty, or promise that we will obtain the best pricing or most advantageous terms on behalf of BIG BLUE Swim Schools. We also do not guaranty the performance of suppliers and distributors to BIG BLUE Swim Schools. We are not responsible or liable if the products or services provided by a supplier or distributor fail to conform to or perform in compliance with Brand Standards or our contractual terms with the supplier or distributor.
7.D.4 We have the right (without liability) to consult with your suppliers about the status of your account with them and to advise your suppliers and others with whom you, we, our affiliates, and other franchisees deal that you are in default under any agreement with us or our affiliates (but only if we or our affiliate has notified you of such default).
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School FDD, Big Blue Swim School has the right to inspect a proposed supplier's or distributor's facilities. This is part of their process for approving suppliers or distributors, which Big Blue Swim School may condition on various requirements. These requirements relate to product quality and safety, third-party lab testing, prices, consistency, warranty, supply-chain reliability and integrity, financial stability, customer relations, delivery efficiency, purchase concentration, and service standards. Big Blue Swim School can also require the proposed supplier or distributor to provide product samples, either directly to them or to a designated third party for testing.
This inspection right allows Big Blue Swim School to ensure that potential suppliers meet their standards before they are approved for use by franchisees. This helps maintain consistency and quality across the Big Blue Swim School system. If a franchisee suggests a supplier or distributor that Big Blue Swim School approves, other Big Blue Swim School locations can also use that supplier without any compensation to the initial franchisee who recommended them.
Big Blue Swim School also retains the right to limit the number of approved suppliers, designate mandatory sources, and reject franchisee requests for any reason. This includes situations where Big Blue Swim School has already designated an exclusive source for a particular item or service, or if they believe limiting the number of suppliers is in the best interest of the Big Blue Swim School network. While this provides Big Blue Swim School with significant control over the supply chain, the FDD states that Big Blue Swim School does not guarantee the best pricing or terms from these suppliers and does not guarantee their performance or assume liability for non-conforming products or services.
Big Blue Swim School also has the right to consult with a franchisee's suppliers about the status of the franchisee's account and to inform the suppliers if the franchisee is in default under any agreement with Big Blue Swim School or its affiliates, but only if the franchisee has been notified of such default.