What does 'you' refer to in the Big Blue Swim School Franchise Disclosure Document?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchisor is Big Blue Swim School Franchising, LLC ("we," "us," or "our"). "You" means the entity to which we grant a franchise and, if applicable, development rights. Your owners must sign our "Guaranty and Assumption of Obligations." This means all of our Franchise Agreement's provisions (Exhibit B) also will apply to your owners.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–11)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, the term "you" refers to the entity to which Big Blue Swim School Franchising, LLC grants a franchise and, if applicable, development rights. This definition is crucial for understanding the responsibilities and rights outlined in the Franchise Agreement. The document also clarifies that the owners of this entity must sign a "Guaranty and Assumption of Obligations," which extends the Franchise Agreement's provisions to them personally. This means that the obligations of the franchise are also the obligations of the owners.
For a prospective franchisee, this definition is important because it clarifies who is legally bound by the terms of the franchise agreement. If the franchise is granted to a corporation or LLC, the owners are still personally responsible due to the guaranty. This is a common practice in franchising, as it provides the franchisor with additional security and ensures that the individuals behind the business are committed to upholding the franchise standards.
Furthermore, the FDD states that franchisees signing Development Rights Agreements (DRAs) must sign the then-current form of the Franchise Agreement for each additional Big Blue Swim School they develop under the DRA. Big Blue Swim School commits to charging the same Royalty, Brand Fund contribution, Software License Fee, Local Marketing Spending Requirement, and minimum required Market Introduction Program expense during the initial franchise term for each Big Blue Swim School developed under the DRA as charged under the first Franchise Agreement. However, if the franchisee and their Approved Affiliates are in default under the DRA or any franchise agreement, the amounts of these fees and payments will remain as specified under the then-current form of franchise agreement. This clause highlights the importance of remaining in good standing with Big Blue Swim School to maintain consistent fee structures across multiple franchise locations.