Can Big Blue Swim School limit the number of approved suppliers and distributors?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Despite these procedures, we have the right to limit the number of approved suppliers and distributors, designate sources you must use, and refuse your requests for any reason, including because we already have designated an exclusive source (which might be us or our affiliate) for a particular item or service or believe that doing so is in the BIG BLUE Swim School network's best interest. It might be disadvantageous from a cost and service basis to have more than one supplier in a given market area, and 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. If we approve any supplier or distributor you recommend, we have the right to authorize other BIG BLUE Swim Schools to buy or lease any Operating Assets or other products or services from that supplier or distributor without compensating you.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 29–34)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, Big Blue Swim School has the right to limit the number of approved suppliers and distributors. They can also designate specific sources that franchisees must use. This includes refusing a franchisee's requests for any reason, such as already having an exclusive source for a particular item or service, or believing that limiting the number of suppliers is in the best interest of the Big Blue Swim School network.
Big Blue Swim School may determine that having multiple suppliers in a market area could be disadvantageous in terms of cost and service. Therefore, they have the right to consider the impact of any supplier approval on their and their franchisees' ability to obtain the lowest distribution costs and best service. If a franchisee recommends a supplier or distributor that Big Blue Swim School approves, Big Blue Swim School can authorize other franchisees to use that supplier without compensating the franchisee who made the initial recommendation.
This policy allows Big Blue Swim School to maintain quality control and potentially negotiate better pricing and service terms with a limited number of suppliers. However, it also means that franchisees may not have the freedom to choose suppliers based on their own preferences or local market conditions. Prospective franchisees should consider how this restriction might affect their operating costs and flexibility.
It is common in franchising to restrict the number of suppliers to maintain brand consistency and quality. Franchisees should discuss with Big Blue Swim School the criteria for supplier approval and the process for requesting approval of new suppliers to better understand their options and obligations.