What is the Big Blue Swim School's policy on transferring ownership interests through a will?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
17.E. Death or Disability
17.E.1 Transfer Upon Death or Disability
Upon the death or disability of one of your owners, that owner's executor, administrator, conservator, guardian, or other personal representative (the "Representative") must transfer the owner's ownership interest in you (or an owner) to a third party, which may include an Immediate Family member. That transfer (including transfer by bequest or inheritance) must occur, subject to our rights under this Section 17.E, within a reasonable time, not to exceed six (6) months from the date of death or disability, and is subject to all terms and conditions in this Section 17. A failure to transfer such interest within this time period is a breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, the transfer of ownership interests upon the death of an owner is addressed in Section 17.E.1. In the event of an owner's death, the owner's representative (executor, administrator, etc.) is required to transfer the ownership interest to a third party, which can include an immediate family member. This transfer, whether through bequest or inheritance, must occur within six months of the date of death or disability, and is subject to all the standard transfer terms and conditions outlined in Section 17. A failure to transfer the interest within this timeframe constitutes a breach of the franchise agreement.
This policy ensures that Big Blue Swim School maintains control over who its franchisees are, even in the event of an owner's death. The six-month timeframe provides a reasonable period for the deceased's estate to handle the transfer while preventing prolonged uncertainty about the franchise's ownership. By requiring the transfer to be subject to the standard conditions, Big Blue Swim School can ensure that the new owner meets their qualifications and standards.
For a prospective franchisee, this means that if they own a Big Blue Swim School franchise and pass away, their heirs will need to find a qualified buyer for the franchise within six months. This could involve selling to a family member or an outside party, subject to Big Blue Swim School's approval. It's important for franchisees to have a succession plan in place to ensure a smooth transition and avoid breaching the franchise agreement. Franchisees should discuss this policy with their legal and financial advisors to prepare for such a scenario.
It is important to note that the transfer is subject to all the terms and conditions in Section 17, which likely include requirements for the transferee's qualifications, financial stability, and compliance with Big Blue Swim School's standards. This ensures that any new owner is capable of operating the franchise successfully and maintaining the brand's reputation. Franchisees should familiarize themselves with all the transfer requirements outlined in Section 17 to ensure compliance in the event of death or disability.