Why does Big Blue Swim School pre-approve the confidentiality and non-compete agreements?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not use Confidential Information in an unauthorized manner. You must take reasonable steps to prevent its improper disclosure to others and use non-disclosure agreements with those having access to Confidential Information. We have the right to pre-approve your nondisclosure agreements solely to ensure that you adequately protect Confidential Information and the competitiveness of BIG BLUE Swim Schools. Under no circumstances will we control the forms or terms of employment agreements you use with School employees or otherwise be responsible for your labor relations or employment practices.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 59–61)
What This Means (2025 FDD)
According to the 2025 FDD, Big Blue Swim School retains the right to pre-approve confidentiality and non-compete agreements to ensure franchisees adequately protect the brand's confidential information and competitiveness. This confidential information includes proprietary curriculum, school layouts, operational methods, marketing techniques, and customer data. By pre-approving these agreements, Big Blue Swim School aims to maintain uniformity and protect its trade secrets across all franchise locations.
This pre-approval process ensures that franchisees implement sufficient measures to prevent unauthorized disclosure of sensitive information. It also helps Big Blue Swim School maintain control over its brand standards and competitive edge within the swim school industry. However, the FDD explicitly states that Big Blue Swim School will not control the forms or terms of employment agreements franchisees use with their employees, nor will they be responsible for the franchisee's labor relations or employment practices.
For a prospective franchisee, this means they must submit their confidentiality and non-compete agreement forms to Big Blue Swim School for approval. While this might add an extra step to the onboarding process, it also provides an opportunity to receive guidance on best practices for protecting confidential information. Franchisees should ensure they understand what constitutes confidential information under the franchise agreement and how to properly safeguard it.
It is important to note that the franchisee is still responsible for their own labor and employment practices. Big Blue Swim School's pre-approval is limited to ensuring the protection of confidential information and does not extend to controlling the franchisee's employment terms or relationships with their employees. This distinction is crucial for franchisees to understand their responsibilities and liabilities as employers.