What is the Payment Day for the MSC Fee for Big Blue Swim School franchisees?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
We may charge you and other BIG BLUE Swim Schools (or cause BIG BLUE Swim Schools to be charged) an administrative fee, not to exceed two percent (2%) of the School's Gross Revenue, payable on or before the Payment Day we specify for the preceding Calculation Period we specify, to support the MSC's operation, including staffing, equipment, and technology (the "MSC Fee"). The purpose of the MSC Fee is to cover, and/or reimburse us or our designee for, the actual costs of operating the MSC. The MSC Fee is separate from the Royalty, Brand Fund contribution (defined in Section 13.B below), Software License Fee, and other fees and charges due under this Agreement. While we or our designee may control use of the MSC Fee, the MSC Fee will not be used to pay any of our general operating costs, except for salaries for MSC staff and other actual costs to administer and operate the MSC*.*
5.E. Payment Method and Timing
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 Big Blue Swim School's 2025 Franchise Disclosure Document, the MSC Fee, which is an administrative fee to support the operation of the Member Services Center (MSC), is payable on or before the Payment Day that Big Blue Swim School specifies. This fee cannot exceed two percent (2%) of the School's Gross Revenue for the preceding Calculation Period.
Big Blue Swim School franchisees must authorize the company to automatically debit their business checking or other account for the MSC Fee, along with other amounts due, no later than the Payment Day. Franchisees are responsible for ensuring sufficient funds are available in the account before the Payment Day for electronic transfer. Big Blue Swim School may also require franchisees to obtain overdraft protection for their bank accounts.
The MSC Fee is separate from other fees such as the Royalty, Brand Fund contribution, and Software License Fee. While Big Blue Swim School or its designee may control the use of the MSC Fee, it will not be used for general operating costs, except for salaries for MSC staff and other actual costs to administer and operate the MSC.
Prospective franchisees should be aware of these payment obligations and ensure they understand the Calculation Period and Payment Day specified by Big Blue Swim School to avoid any insufficient funds charges or other penalties.