How often does the franchisee of a Big Blue Swim School pay the Royalty fee?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to authorize us to debit your business checking or other account automatically for the Royalty, Software License Fee, Brand Fund contribution, MSC Fee, and other amounts due under this Agreement and any related agreement between us (or our affiliates) and you. We will debit your account no later than the Payment Day for the Royalty, Software License Fee, Brand Fund contribution, MSC Fee, and other amounts due. Funds must be available in the account before the Payment Day for withdrawal by electronic transfer. We may require you to obtain, at your expense, overdraft protection for your bank account in an amount we specify. You must reimburse any "insufficient funds" charges and related expenses we incur due to your failure to maintain sufficient funds in your bank account. You may not close this account without first establishing, and notifying us of, a new account that we are authorized to debit as provided in this Section.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, franchisees are required to authorize the franchisor to automatically debit their business checking or other account for the Royalty fee, among other fees. The debits will occur no later than the Payment Day specified by Big Blue Swim School for the Royalty, Software License Fee, Brand Fund contribution, MSC Fee, and other amounts due.
Franchisees must ensure that sufficient funds are available in the designated account before the Payment Day to cover the electronic transfer. Big Blue Swim School may also require franchisees to obtain overdraft protection for their bank account, at the franchisee's expense, in an amount specified by the franchisor. Franchisees are responsible for reimbursing any "insufficient funds" charges and related expenses incurred by Big Blue Swim School due to the franchisee's failure to maintain sufficient funds in their bank account.
Furthermore, franchisees are not allowed to close the authorized account without first establishing a new account that Big Blue Swim School is authorized to debit and notifying them of the new account details. While the FDD specifies the method and timing of payments, it does not specify the exact frequency (e.g., weekly, monthly) of Royalty payments. A prospective franchisee should clarify the specific payment frequency with the franchisor during their due diligence.