What provisions must be included in the lease for a Big Blue Swim School franchise?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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BIG BLUE SWIM SCHOOL FRANCHISING, LLC, an Illinois limited [INSERT FRANCHISEE NAME], a(n) [insert state of formation] liability company
EXHIBIT D TO THE BIG BLUE SWIM SCHOOL FRANCHISING, LLC FRANCHISE AGREEMENT
LEASE RIDER
LEASE PROVISIONS FOR BIG BLUE SWIM SCHOOL FRANCHISES
The following provisions must be inserted into the lease for the School you will operate under the "BIG BLUE SWIM SCHOOL®" brand (the "Lease"). You may add this language via a rider or addendum to your Lease as long as the rider or addendum is signed by both the tenant and the landlord. Please send us a copy of the signed Lease and any riders or addenda.
REQUIRED LANGUAGE:
- A. During the Term of the franchise agreement (the "Franchise Agreement") between Tenant and BIG BLUE SWIM SCHOOL FRANCHISING, LLC ("BBSS"), Tenant will use the premises only to operate a BIG BLUE Swim School.
- B. Landlord agrees that BBSS, or a Franchisee of the BBSS Franchise System selected by BBSS, shall have the right to receive an assignment of this Lease upon transfer, termination or expiration of the Franchise Agreement between BBSS and Tenant, d/b/a BIG BLUE Swim School. Upon such transfer, termination or expiration of said Franchise Agreement, Landlord shall promptly execute an acknowledgement of and consent to the assignment of the Lease.
- C. Landlord will send to BBSS copies of all default notices, and all notices of Landlord's intent to terminate the Lease (or any rights of Tenant under the Lease) or evict Tenant from the leased premises, simultaneously with sending such notices to Tenant. Such notice shall be delivered to BBSS in writing by overnight delivery by FedEx or other nationally-recognized overnight courier. Landlord and Tenant hereby acknowledge and agree that BBSS has the right, but is under no obligation, to cure any deficiency under the Lease, if Tenant should fail to do so, within (i) fifteen (15) days after Franchisor's receipt of such notice as to monetary defaults or (ii) thirty (30) days after Franchisor's receipt of such notice as to non-monetary defaults. Such copies must be sent to:
BIG BLUE SWIM SCHOOL FRANCHISING, LLC
112 Krog Street NE, Suite D-135 Atlanta, Georgia 30307 Attn: President
D. Consent to Collateral Assignment to Franchisor; Disclaimer. Landlord acknowledges that Tenant intends to operate a BIG BLUE Swim School in the Premises, and that Tenant's rights to operate a BIG BLUE Swim School and to use the trade and service marks set forth on Exhibit "A" to this Rider are solely pursuant to a franchise agreement dated __________, 20__ (the "Franchise Agreement") between Tenant and Big
Blue Swim School Franchising, LLC (the "Franchisor"). Tenant's operations at the Premises are independently owned and operated. Landlord acknowledges that Tenant alone is responsible for all obligations under the Lease unless and until Franchisor or another franchisee expressly, and in writing, assumes such obligations and takes actual possession of the Premises. Notwithstanding any provisions of this Lease to the contrary, Landlord hereby consents, without payment of a fee and without the need for further Landlord consent, to (i) the collateral assignment of Tenant's interest in this Lease to Franchisor to secure Tenant's obligations to Franchisor under the Franchise Agreement, and/or (ii) Franchisor's (or any entity owned or controlled by, or under common control or ownership with, Franchisor) succeeding to Tenant's interest in the Lease by mutual agreement of Franchisor and Tenant, or as a result of Franchisor's exercise of rights or remedies under such collateral assignment or as a result of Franchisor's termination of, or exercise of rights or remedies granted in or under, any other agreement between Franchisor and Tenant, and/or (iii) Tenant's, Franchisor's and/or any other franchisee of Franchisor's assignment of the Lease to another franchisee of Franchisor with whom Franchisor has executed its then-standard franchise agreement. Landlord, Tenant and Franchisor agree and acknowledge that simultaneously with such assignment pursuant to the immediately preceding sentence, Franchisor shall be released from all liability under the Lease or otherwise accruing after the date of such assignment (in the event Franchisor is acting as the assignor under such assignment), but neither Tenant nor any other franchisee shall be afforded such release in the event Tenant/such franchisee is the assignor unless otherwise agreed by Landlord. Landlord further agrees that all unexercised renewal or extension rights and other rights stated to be personal to Tenant shall not be terminated in the event of any assignment referenced herein, but shall inure to the benefit of the applicable assignee.
- E. BBSS or its affiliates may enter the premises to make any modifications or alterations necessary to protect the Franchise System and the Marks or to cure any default under the Franchise Agreement or Lease at any time and without prior notice to Landlord.
- F. Notwithstanding anything contained in the Lease to the contrary or in conflict, it will be a condition of the Lease being subordinated to any mortgage, deed of trust, deed to secure debt, or similar encumbrance on the Premises that the holder of such encumbrance agree not to disturb Tenant's rights under this Lease or Tenant's possession of the Premises, so long as Tenant is not in default of its obligations hereunder beyond an applicable grace or cure period provided herein (as may be extended from time to time pursuant to Section C above).
- G. Landlord acknowledges that the value of the BIG BLUE SWIM SCHOOL® brand is derived from the ability to provide uniform products and services and the uniform appearance of its brand, signs, store concept and leasehold improvements. As a result, Landlord shall, without charge, permit Tenant to comply with standard changes and updates by BBSS to its brand, signs, store concept and leasehold improvements; provided that such changes and updates are not in violation of the terms of the Lease. In the event
that Landlord approval for such changes and updates is required under the Lease, such approval shall not be unreasonably withheld.
- H.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School FDD, the lease for a Big Blue Swim School franchise must include specific provisions to protect the franchisor's interests. These provisions are added to the lease via a rider or addendum signed by both the tenant (franchisee) and the landlord. The franchisee must send Big Blue Swim School a copy of the signed lease and any riders or addenda.
The required lease provisions ensure that Big Blue Swim School or its affiliates can access the premises for modifications or to address defaults without prior notice to the landlord. The lease must also stipulate that it is subordinate to any mortgage, but with the condition that the mortgage holder agrees not to disturb the tenant's rights as long as the tenant is not in default. The landlord must acknowledge the importance of maintaining uniform brand standards and permit the franchisee to comply with standard changes and updates to the brand, signs, store concept, and leasehold improvements, provided these changes do not violate the lease terms and landlord approval is not unreasonably withheld.
Big Blue Swim School has the right, but not the obligation, to enter the premises to protect its brand and trademarks within 30 days of receiving a termination or expiration notice from the landlord. This includes the right to remove or alter signage, with any material alterations requiring the landlord's approval, which cannot be unreasonably withheld. Big Blue Swim School is considered a third-party beneficiary with the right to enforce these provisions, and neither the landlord nor the tenant can alter these provisions without Big Blue Swim School's prior written approval. The landlord must also provide Big Blue Swim School with a copy of the fully-executed lease within 10 days of its execution.
Additional stipulations include that the tenant will only use the premises to operate a Big Blue Swim School during the franchise term. Big Blue Swim School, or a franchisee selected by Big Blue Swim School, has the right to receive an assignment of the lease upon transfer, termination, or expiration of the franchise agreement. The landlord must send copies of all default notices and termination notices to Big Blue Swim School simultaneously with sending them to the tenant, giving Big Blue Swim School the right, but not the obligation, to cure any deficiency within 15 days for monetary defaults or 30 days for non-monetary defaults after receiving notice. The lease rider must be substantially in the form attached to the Franchise Agreement as Exhibit D.