Must a Big Blue Swim School participate in national, regional, or local promotions?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Brand Standards may regulate price advertising policies and maximum, minimum, or other pricing requirements for services and products the School sells, including requirements for national, regional, and local promotions, special offers, and discounts in which some or all BIG BLUE Swim Schools must participate, in each case to the extent the law allows.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 61)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, franchisees may be required to participate in national, regional, and local promotions. The Brand Standards may regulate price advertising policies and set pricing requirements for the services and products Big Blue Swim School offers. These standards can include mandatory participation in promotions, special offers, and discounts, provided such requirements are legally permissible.
Big Blue Swim School also utilizes a Brand Fund, which is funded by franchisee contributions not exceeding 3% of the School's Gross Revenue during the preceding Calculation Period; currently, franchisees contribute 2% of Gross Revenue. This fund supports various marketing and advertising programs, including national, regional, and multi-regional campaigns. While the Brand Fund is managed by the franchisor, these promotions aim to benefit all Big Blue Swim School locations, including the franchisee's.
Additionally, franchisees may be required to participate in advertising programs administered by a Cooperative, if one exists for their geographic area. Big Blue Swim School reserves the right to require franchisees to contribute up to 4% of the School’s Gross Revenue to the Cooperative. These cooperative dues count toward the Local Marketing Spending Requirement.
Therefore, as a Big Blue Swim School franchisee, you should be prepared to allocate a portion of your revenue towards both the Brand Fund and potential cooperative advertising, and to participate in promotional activities as directed by the Brand Standards. Understanding the specifics of these requirements and their potential impact on your school's profitability is crucial.