What is the new deferrals due to cash received in 2024 for Big Blue Swim School?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
m of any document executed in connection with the franchise.
ILLINOIS
- The following statement is added to the State Cover Page of the Franchise Disclosure Document:
DURING THE 4TH – 8TH YEARS AFTER YOU COMMENCE BUSINESS OPERATIONS, THE FRANCHISOR MAY REQUIRE YOU TO SUBSTANTIALLY ALTER THE SCHOOL'S APPEARANCE, LAYOUT AND/OR DESIGN. THIS COULD OBLIGATE YOU TO SPEND SUBSTANTIAL AMOUNTS OF MONEY, BUT NO MORE THAN 20% OF THE INITIAL AMOUNT YOU SPENT TO CONSTRUCT THE SCHOOL
- The following language is added after the last paragraphs in Items 5 and 7 of the Franchise Disclosure Document:
Despite the payment provisions above, we will defer your payment of the initial franchise fee due to us under the Franchise Agreement until we have fulfilled all our initial obligations to you under the Franchise Agreement and you have commenced operating the BIG BLUE Swim School. You must pay us the initial franchise fee on the day you begin operating your BIG BLUE Swim School.
Source: Item 23 — RECEIPTS (FDD pages 76–278)
What This Means (2025 FDD)
I am unable to provide the exact figure for new deferrals due to cash received in 2024 for Big Blue Swim School, as this specific financial data is not disclosed within the provided excerpts from the 2025 Franchise Disclosure Document. The excerpts do discuss deferral of payments for both the initial franchise fee and the development fee under certain conditions.
Specifically, Big Blue Swim School defers the initial franchise fee until all initial obligations are fulfilled and the franchisee commences operating their swim school. The initial franchise fee is due on the day the Big Blue Swim School opens for business. Similarly, the development fee under a Development Rights Agreement is deferred until all initial obligations are met and the first Big Blue Swim School begins operations, with the fee due on the opening day. This deferral is applied on a prorated basis for each swim school as it opens.
A prospective franchisee should directly ask Big Blue Swim School for detailed financial statements, including the specific amount of new deferrals due to cash received in 2024. Understanding these figures is crucial for assessing the company's financial health and stability, and for making an informed investment decision.