Can Big Blue Swim School limit the number of approved suppliers a franchisee can use?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, Big Blue Swim School has the authority to limit the number of approved suppliers and distributors that a franchisee can use. They can also designate specific sources that franchisees must use. This includes the right to refuse a franchisee's request to use a supplier for any reason, including if Big Blue Swim School has already designated an exclusive source for a particular item or service. This exclusive source could be Big Blue Swim School itself or one of its affiliates.
This policy gives Big Blue Swim School significant control over the supply chain and the products and services used at each franchised location. Big Blue Swim School believes that limiting the number of suppliers may be advantageous from a cost and service perspective. Big Blue Swim School retains 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.
However, Big Blue Swim School does not guarantee that they will obtain the best pricing or most advantageous terms on behalf of Big Blue Swim Schools, nor do they guarantee the performance of suppliers and distributors. Big Blue Swim School is also 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 their contractual terms with the supplier or distributor.
Prospective franchisees should be aware that Big Blue Swim School's decisions regarding suppliers are based on their business judgment and may not always align with the franchisee's individual interests. It is important for franchisees to understand the implications of these supplier restrictions and to carefully evaluate the potential costs and benefits before investing in a Big Blue Swim School franchise.