What is a 'Qualified Site' in the context of a Big Blue Swim School franchise agreement?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
If the School's address is unknown as of the Effective Date, this Section 4.B will govern the site selection and acceptance process. Within two hundred ten (210) days after the Effective Date, but subject to the potential extensions described below in Section 4.C, an acceptable site for the School within the exclusive geographical area described in Exhibit A (the "Site Selection Area") must be found and secured. The timeframe during which the School's site must be located, accepted, and secured within the Site Selection Area (the "Site Selection Period") will expire upon the earliest of (a) our acceptance of the School's site and Lease and giving you an amended and restated Exhibit A, (b) this Agreement's termination, or (c) two hundred ten (210) days after the Effective Date.
- 4.B.2 We may (but have no obligation to) visit the Site Selection Area to review potential School sites. Using local commercial real estate brokers, we may recommend potential School sites for your consideration. Recommendation of a School's site will be based on our then-current criteria for BIG BLUE Swim School sites, including, without limitation, population density and other demographic characteristics, visibility, traffic flow, competition, accessibility, ingress and egress, size, and other physical and commercial characteristics.
- 4.B.3 We will not unreasonably withhold our acceptance of a site if, in our experience and based on the factors outlined above, the proposed site is not inconsistent with sites that we 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 prefer is accepted but not recommended due to its incompatibility with certain factors that bear on a site's suitability as a location for a BIG BLUE Swim School.
- 4.B.4 You must evaluate and ultimately approve the selection of the School's site. Our recommendation and acceptance of a site indicates only that we believe the site is not inconsistent with sites that we regard as favorable or that otherwise have been successful sites in the past for BIG BLUE Swim Schools. Applying criteria appearing effective with other sites might not accurately reflect the potential of all sites, and demographic or other factors included in or excluded from our criteria could change, altering a site's potential.
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 term "Qualified Site" is not explicitly defined. However, the document does detail the process of site selection and the criteria Big Blue Swim School uses to evaluate potential locations.
Within 210 days of the franchise agreement's effective date, the franchisee must find and secure an acceptable site within the exclusive geographical area outlined in Exhibit A, referred to as the "Site Selection Area." Big Blue Swim School may offer recommendations for potential sites based on factors such as population density, demographics, visibility, traffic flow, competition, accessibility, size, and other physical and commercial characteristics. While Big Blue Swim School will not unreasonably withhold acceptance of a site that aligns with their criteria and past successful locations, they retain the right to reject any site that doesn't meet their standards or to require the franchisee to acknowledge in writing that a preferred site is accepted despite its incompatibility with certain factors.
The franchisee ultimately approves the site selection, and Big Blue Swim School's recommendation indicates only that the site is consistent with favorable or successful locations. The document cautions that applying past criteria might not accurately reflect the potential of all sites, and demographic or other factors could change, altering a site's potential. Therefore, while there is no explicit definition of "Qualified Site," the FDD details the characteristics and process for finding and securing a location that Big Blue Swim School deems suitable for a franchise.
Prospective franchisees should carefully consider these site selection criteria and understand that final site approval rests with them, even with Big Blue Swim School's input. It would be prudent for potential franchisees to discuss site selection strategies and approval processes with existing franchisees during their due diligence. Additionally, prospective franchisees should ask Big Blue Swim School to clarify what specific attributes they consider essential for a site to be deemed acceptable and what recourse a franchisee has if they believe Big Blue Swim School is unreasonably withholding approval.