How many days does a Big Blue Swim School franchisee have to pay suppliers?
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. |
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 30 days to pay suppliers. This is outlined in Item 17, which discusses the conditions under which Big Blue Swim School can terminate the franchise agreement for cause. Specifically, if a franchisee fails to pay their suppliers, it is considered a curable default.
This 30-day period provides a window for franchisees to rectify the situation and avoid termination. However, it's crucial for franchisees to manage their finances effectively to ensure timely payments to suppliers. Failure to do so not only risks termination but can also disrupt the supply chain and overall business operations.
In the franchise industry, cure periods for monetary defaults, including payments to suppliers, typically range from a few days to a month. Big Blue Swim School's 30-day cure period is within this standard range, offering franchisees a reasonable timeframe to address payment issues. Franchisees should maintain open communication with suppliers and Big Blue Swim School to address any potential payment delays proactively.
It is important to note that failure to cure the default within the 30-day period can lead to the termination of the Franchise Agreement and SaaS Agreement, as indicated in Item 17. Therefore, franchisees must prioritize timely payments to suppliers to maintain a healthy business relationship and avoid potential legal and financial repercussions.