Does the Big Blue Swim School non-compete agreement apply after a permitted transfer of the franchise?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
utions, MSC Fees, and other amounts owed to us and our affiliates relating to this Agreement and the School, have submitted all required reports and statements, and are not in breach of any provision of this Agreement or another agreement with us or our affiliates relating to the School;
- (c) on both the date you send us the transfer request and the transfer's proposed effective date, neither the transferee nor any of its direct or indirect owners or affiliates operates, has an ownership interest in, or performs services for a Competitive Business;
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
Based on the 2025 Big Blue Swim School Franchise Disclosure Document, a transferee cannot operate, have an ownership interest in, or perform services for a Competitive Business at the time of transfer. A "Competitive Business" is defined as a business that provides swim lessons, swim skills, or swim activities for children aged three (3) months to twelve (12) years old, or a business granting franchises or licenses to others to operate such a business, excluding a Big Blue Swim School franchise. This condition must be met on both the date the transfer request is sent and the proposed effective date of the transfer.
This requirement ensures that the new franchisee is not directly competing with the Big Blue Swim School system. It protects the brand's market position and prevents potential conflicts of interest.
For a prospective franchisee, this means that if they plan to transfer their franchise, the potential buyer must not be involved in any competitive swim school business. This could limit the pool of potential buyers and may affect the sale price or terms of the transfer. It is crucial to ensure any potential transferee meets this requirement to avoid delays or rejection of the transfer request by Big Blue Swim School.
Big Blue Swim School also requires the transferee to meet other conditions such as having the necessary business experience, aptitude, and financial resources to operate the School and satisfactorily complete the initial training if the management personnel are different from the previous franchisee.