Is Big Blue Swim School liable for any taxes related to the franchisee's business operations?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
We and you are entering this Agreement with the intent and expectation that we and you are and will be independent contractors. Further, we and you are not and do not intend to be partners, joint venturers, associates, or employees of the other in any way, and we (and our affiliates) will not be construed to be jointly liable for any of your acts or omissions under any circumstances. We (and our affiliates) are not the employer or joint employer of the School's employees. Your Managing Owner, general managers, and assistant managers are solely responsible for managing and operating the School and supervising the School's employees. You agree to identify yourself conspicuously in all dealings with customers, suppliers, public officials, School personnel, and others as the School's owner, operator, and manager under a franchise we have granted and to place notices of independent ownership at the School and on the forms, business cards, stationery, advertising, e-mails, and other materials we require from time to time.
We (and our affiliates) will not exercise direct or indirect control over the working conditions of School personnel, except to the extent such indirect control is related to our legitimate
interest in protecting the quality of our services, products, or brand. We (and our affiliates) do not share or codetermine the employment terms and conditions of the School's employees and do not affect matters relating to the employment relationship between you and the School's employees, such as employee selection, promotion, termination, hours worked, rates of pay, other benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions. To that end, you must notify School personnel that you are their employer and that we, as the franchisor of BIG BLUE Swim Schools, and our affiliates are not their employer or joint employer and do not engage in any employer-type activities for which only franchisees are responsible, such as employee selection, promotion, termination, hours worked, rates of pay, other benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions. You also must obtain an acknowledgment (in the form we specify or approve) from all School employees that you (and not we or our affiliates) are their employer.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, Big Blue Swim School and its affiliates are not liable for the franchisee's acts or omissions. The agreement explicitly states that the franchisee and Big Blue Swim School are independent contractors and are not intended to be partners, joint ventures, associates, or employees of each other.
This distinction as independent contractors means that Big Blue Swim School will not be held jointly liable for any actions or failures of the franchisee's business. This extends to the franchisee's responsibility for managing and operating their school, including supervising employees. The franchisee is required to clearly identify themselves as the owner and operator of the school in all dealings with customers, suppliers, and employees.
Big Blue Swim School does not exercise direct control over the working conditions of the franchisee's employees, except to protect the quality of services, products, or the brand. The franchisee is solely responsible for employment-related matters, such as hiring, firing, pay rates, and working conditions. Franchisees must inform their employees that they, the franchisee, are their employer, and that Big Blue Swim School is not the employer. This arrangement is typical in franchising, where franchisees operate independently and are responsible for their own business operations, including tax obligations.