How many days does a Big Blue Swim School franchisee have to cure monetary defaults?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| g. “Cause” defined curable defaults | 16 and 19.B of Franchise Agreement 5 of SaaS Agreement | You have 5 days to cure monetary, safety, and |
|---|---|---|
| insurance defaults; 10 days to cure rejection of | ||
| Qualified Site tendered to you; 10 days to satisfy | ||
| unpaid judgments of at least $25,000; 30 days to | ||
| pay suppliers and to cure other defaults not listed | ||
| in (h) below; 60 days to vacate attachment, | ||
| seizure, or levy of School or appointment of | ||
| receiver, trustee, or liquidator; and time allowed | ||
| by law to cure violations of material law. | ||
| In addition, we have the right to terminate the | ||
| Franchise Agreement immediately upon written | ||
| notice if the cost to repair the damage to the | ||
| School from a fire or other casualty exceeds a | ||
| certain damage threshold and you do not notify us | ||
| within a reasonable time after the casualty that | ||
| you either intend to repair the damage and operate | ||
| the School or elect not to repair the damage and | ||
| operate the School. | ||
| While termination of the Development Rights | ||
| Agreement does not impact any then-effective | ||
| franchise agreement, termination of a franchis | ||
| agreement entitles us to terminate the | ||
| Development Rights Agreement. | ||
| You have 10 days to cure monetary defaults and | ||
| 10 days to cure other defaults under SaaS | ||
| Agreement |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 61–69)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, a franchisee has a specific timeframe to correct monetary defaults. Specifically, the franchisee has 5 days to cure monetary defaults under the Franchise Agreement. Additionally, the franchisee has 10 days to cure monetary defaults under the SaaS Agreement.
These cure periods are crucial for franchisees as they represent the window of opportunity to rectify any financial shortcomings and avoid termination of the franchise agreement. Failing to address the defaults within the stipulated time can lead to the franchisor exercising their right to terminate the agreement, resulting in the loss of the franchise.
It is important to note that the cure periods may vary depending on the type of default. For instance, defaults related to safety and insurance also have a 5-day cure period, while other types of defaults may have longer cure periods, such as 30 days to pay suppliers. Franchisees should be aware of these varying timelines and prioritize addressing defaults promptly to maintain compliance with the franchise agreement.
Prospective Big Blue Swim School franchisees should carefully review Item 17 of the Franchise Disclosure Document and the referenced sections of the Franchise Agreement and SaaS Agreement to fully understand the circumstances under which termination may occur and the corresponding cure periods. Understanding these provisions is essential for managing the franchise effectively and mitigating the risk of termination.