What is the purpose of a Big Blue Swim School Cooperative?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
may change, dissolve, and merge Cooperatives. Each Cooperative's purpose is, with our approval, to administer advertising programs and develop Marketing Materials for the area the Cooperative covers. If, as of the Effective Date, we have established a Cooperative for the geographic area in which the School is located, or if we establish a Cooperative in that area during the Term, you automatically will become a member of the Cooperative and then must participate as its governing documents require. We reserve the right to require you to contribute to the Cooperative up to four percent (4%) of the School's Gross Revenue during the applicable preceding Calculation Period. All of the Cooperative dues you contribute will count toward the Local Marketing Spending Requirement under Section 13.D but will not affect your market introduction program obligations under Section 13.A or be credited toward your required Brand Fund contributions.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School FDD, a Cooperative's purpose is to administer advertising programs and develop Marketing Materials for the area the Cooperative covers, with Big Blue Swim School's approval. If a Cooperative is established for the geographic area in which a franchisee's school is located, the franchisee will automatically become a member and must participate as required by the Cooperative's governing documents.
Big Blue Swim School reserves the right to require franchisees to contribute up to four percent (4%) of the School's Gross Revenue to the Cooperative during the applicable preceding Calculation Period. All Cooperative dues that a franchisee contributes will count toward the Local Marketing Spending Requirement but will not affect the franchisee's market introduction program obligations or be credited toward required Brand Fund contributions.
This means that as a Big Blue Swim School franchisee, you may be required to participate in a regional advertising cooperative and contribute up to 4% of your gross revenue to that cooperative. These contributions will count towards your local marketing obligations, but are separate from both your initial market introduction program and your ongoing Brand Fund contributions. Franchisees should inquire about whether a cooperative exists in their territory, and carefully review the cooperative's governing documents to understand their obligations.