What is the process for a franchisee to get a lease or sublease accepted by Big Blue Swim School?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
you (or your Approved Affiliate) sign a franchise agreement for the next BIG BLUE Swim School to be constructed and developed within the Territory, we will apply the deposit related to that Swim School (which is part of the Development Fee) toward the initial franchise fee due for that Swim School (leaving only the balance of the initial franchise fee due at signing).
5. Grant of Franchises and Site Selection/Leasing Process for BIG BLUE Swim Schools.
- (a) You must locate, evaluate, and select the Swim School's site. You must give us all information and materials we request to assess each proposed Swim School site. We will not search for or select the site for you. In granting you development rights under this DRA, we are relying on your knowledge of the real estate market in the Territory and your ability to locate and access sites.
- (b) We will give you our then-current criteria for BIG BLUE Swim School sites (including, without limitation, population density and other demographic characteristics, visibility, traffic flow, competition, accessibility, parking, ingress and egress, size, and other physical and commercial characteristics) to help in the site-selection process. We will not unreasonably withhold site acceptance if, in our and our affiliates' experience and based on the factors identified above, the proposed site is not inconsistent with sites that we and our affiliates regard as favorable or that otherwise have been successful sites in the past for BIG BLUE Swim Schools. However, we have the absolute right to reject any site not meeting our criteria or to require you to acknowledge in writing that a site you have chosen, while acceptable to us, is not recommended due to its incompatibility with certain factors bearing on a site's suitability as a location for a BIG BLUE Swim School.
We will review potential BIG BLUE Swim School sites that you identify within the Territory and may, but have no obligation to, visit the Territory once (for no additional fee) to review potential sites for each BIG BLUE Swim School to be constructed and developed under this DRA. We have the right to require you to reimburse our out-of-pocket expenses for each site visit after the first per-Swim School visit. We have the right to condition our acceptance of a proposed site, or a proposed site visit, on your first sending us complete site reports and other materials (including, without limitation, photographs and digital recordings) we request. We agree to use reasonable efforts to review and accept (or not accept) sites you propose within thirty (30) days after we receive all requested information and materials. You may not proceed with a site that we have not accepted.
- (c) You (and your Approved Affiliates) do not have the right under this DRA to reject (and therefore must accept) a proposed Swim School site the location and physical and other characteristics of which, and the proposed commercial lease terms for which, were accepted by our real-estate committee (a "Qualified Site").
- (d) You also must send us for our written acceptance, which we will not unreasonably withhold, any lease or sublease that will govern your occupancy and lawful possession of each BIG BLUE Swim School site before you sign it. You may not sign any lease or sublease that we
have not accepted in writing. We may (but have no obligation to) guide you in the leasing process but will not negotiate the lease or sublease for you or provide any legal advice. You must satisfy the lease execution deadline specified in the Schedule for each BIG BLUE Swim School you commit to develop under this DRA.
(e) If we accept the proposed site and you (or your Approved Affiliate) have gained lawful possession of the site, but you (or your Approved Affiliate) have not yet signed a franchise agreement for that BIG BLUE Swim School (even though we expect the lease, franchise agreement, and SaaS Agreement to be signed at same time), you agree within the time period we specify (but no later than the deadline on the Schedule) to sign (or cause your Approved Affiliate to sign) a separate franchise agreement (and related documents) for that BIG BLUE Swim School. If you (or your Approved Affiliate) fail to do so, or cannot obtain lawful possession of the proposed site, we have the right to withdraw our acceptance of the proposed site and exercise any of our other rights under this DRA.
After you and your owners (or your Approved Affiliate and its owners) sign the franchise agreement (and related documents) and SaaS Agreement for a BIG BLUE Swim School, their terms and conditions will control the construction, development, and operation of the BIG BLUE Swim School (except that the required opening deadline is governed exclusively by the Schedule in this DRA, except as expressly provided in Section 2(d) above).
Source: Item 23 — RECEIPTS (FDD pages 76–278)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, franchisees are responsible for locating, evaluating, and selecting the site for their Swim School. Big Blue Swim School does not search for or select the site for the franchisee, as they rely on the franchisee's knowledge of the real estate market in their territory and their ability to find and secure suitable locations. The franchisee must provide Big Blue Swim School with all requested information and materials to assess each proposed site.
Big Blue Swim School will provide franchisees with their current criteria for Swim School sites, including factors such as population density, demographic characteristics, visibility, traffic flow, competition, accessibility, parking, size, and other physical and commercial characteristics. Big Blue Swim School will not unreasonably withhold site acceptance if the proposed site aligns with their experience and the factors they consider favorable or consistent with successful sites. However, Big Blue Swim School retains the absolute right to reject any site that does not meet their criteria. They can also require the franchisee to acknowledge in writing that a chosen site, while acceptable, is not recommended due to incompatibility with certain factors relevant to a Big Blue Swim School location.
The FDD outlines a timeline for signing the lease, franchise agreement, and SaaS Agreement. For the first Big Blue Swim School, these agreements are signed concurrently with the DRA Lease Execution Deadline. For subsequent locations, there is a specified deadline for signing these agreements. The FDD also states that the Big Blue Swim School must be opened and operating within 14 months after the lease is signed, even if the lease is signed before the Lease Execution Deadline. If a franchisee rejects a qualified site for their second or subsequent Big Blue Swim School and does not correct this within ten days of written notice, Big Blue Swim School has the right to establish or grant another franchisee the right to establish a Big Blue Swim School at that site.