What are the obligations of Big Blue Swim School upon termination or expiration of the License Agreement?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Big Blue IP may terminate the License Agreement immediately if we breach the License Agreement and fail to cure the breach within 30 days after receiving written notice from Big Blue IP. When the License Agreement terminates or expires, we must stop using and sublicensing the Marks and related intellectual property. However, any BIG BLUE Swim School franchisee that has been authorized to use the Marks in its franchise may continue using the Marks until that franchisee's franchise agreement, and any permitted successor franchise agreement, expire or are terminated, but only if the franchisee continues to comply with its obligations in the franchise agreement and any permitted successor franchise agreement during their remaining terms.
Source: Item 13 — TRADEMARKS (FDD pages 55–58)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, the License Agreement's initial term is 20 years, with an option for renewal for 3 successive 10-year terms. Big Blue IP, not Big Blue Swim School, has the right to terminate the License Agreement immediately if Big Blue Swim School breaches the License Agreement and fails to cure the breach within 30 days after receiving written notice from Big Blue IP. Upon termination or expiration of the License Agreement, Big Blue Swim School must stop using and sublicensing the Marks and related intellectual property.
However, there is an exception: any Big Blue Swim School franchisee that has been authorized to use the Marks in its franchise may continue using the Marks until that franchisee's franchise agreement, and any permitted successor franchise agreement, expire or are terminated. This is conditional on the franchisee continuing to comply with its obligations in the franchise agreement and any permitted successor franchise agreement during their remaining terms.
This means that while Big Blue Swim School itself must cease using the trademarks upon termination or expiration of its License Agreement, its existing franchisees are protected and can continue to operate under the Big Blue Swim School brand, provided they remain in good standing with their own franchise agreements. This clause ensures continuity for individual franchisees even if the overarching License Agreement between Big Blue IP and Big Blue Swim School ends.