What is the maximum amount Big Blue Swim School can increase fixed fees annually?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
d. The Software License Fee is payment for your right to use our affiliate's proprietary BIG BLUE Swim School software ("LESSONBuddy") in operating your School.
Notwithstanding the above, you agree to pay us a minimum Software License Fee for each four (4)-week period during the Term equal to no less than One Thousand Five Hundred Dollars ($1,500), as periodically increased in accordance with Section 5.H below (the "Minimum Software License Fee"). We will prorate the Minimum Software License Fee payable based on the then-current Calculation Period for the Software License Fee. If the Software License Fees you pay us, based on the then-applicable percentage (not to exceed two percent (2%)) of the School's Gross Revenue during the applicable Calculation Period, do not equal the prorated amount of the Minimum Software License Fee for that Calculation Period, you must pay us the deficiency (in addition to all other amounts regularly due) on or before the Payment Day we specify (we may debit the deficiency automatically, as provided in Section 5.E below). The Minimum Software License Fee will not begin until after you hav
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
Based on the 2025 Big Blue Swim School Franchise Disclosure Document, the franchisor can increase the Minimum Software License Fee periodically. The franchisee must pay a minimum Software License Fee for each four-week period, no less than $1,500.
The Software License Fees are calculated based on a percentage (up to 2%) of the School's Gross Revenue during the Calculation Period. If this calculation does not meet the minimum Software License Fee, the franchisee must cover the difference. This fee does not start until after the school has been operating for 12 weeks.
The FDD does not specify a maximum percentage or amount by which Big Blue Swim School can increase fixed fees annually. As such, it is important that a prospective franchisee ask the franchisor how often and by what method the fixed fees, such as the Minimum Software License Fee, may be increased during the term of the Franchise Agreement.