What is the length of each renewal term for 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.
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 License Agreement has an initial term of 20 years. Big Blue IP licenses the use of trademarks and related intellectual property to Big Blue Swim School, which in turn authorizes franchisees to use them.
The License Agreement provides Big Blue Swim School with the option to renew for three successive terms, each lasting 10 years. This means that after the initial 20-year term, Big Blue Swim School can extend the agreement for up to 30 additional years, in 10-year increments.
This renewal structure offers Big Blue Swim School significant long-term control over the use of the licensed trademarks and intellectual property. However, Big Blue Swim School also has the right to terminate the License Agreement at any time, providing flexibility. Big Blue IP, on the other hand, can terminate the agreement immediately if Big Blue Swim School breaches the agreement and fails to correct the breach within 30 days of written notice.
It's important to note that upon termination or expiration of the License Agreement, Big Blue Swim School must cease using and sublicensing the trademarks and related intellectual property. However, any existing Big Blue Swim School franchisee in good standing can continue using the marks until their individual franchise agreement expires or is terminated.