Can Big Blue Swim School refuse a franchisee's request for a supplier approval?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
7.D.3 Despite the foregoing, we may limit the number of approved suppliers and distributors with which you may deal, designate sources you must use, and refuse any of your requests for any reason, including, without limitation, because we have already designated an exclusive source (which might be us or one of our affiliates) for a particular item or service or believe that doing so is in the BIG BLUE Swim School network's best interests. You acknowledge that it might be disadvantageous from a cost and service basis to have more than one supplier in a given market area, and that we have the right to consider the impact of any supplier approval on our and our franchisees' ability to obtain the lowest distribution costs and best service. However, we make no guaranty, warranty, or promise that we will obtain the best pricing or most advantageous terms on behalf of BIG BLUE Swim Schools. We also do not guaranty the performance of suppliers and distributors to BIG BLUE Swim Schools. We are not responsible or liable if the products or services provided by a supplier or distributor fail to conform to or perform in compliance with Brand Standards or our contractual terms with the supplier or distributor.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, Big Blue Swim School has broad discretion over supplier approvals and can refuse a franchisee's request for any reason.
The FDD states that Big Blue Swim School may limit the number of approved suppliers and distributors a franchisee can use. They can also designate specific sources that franchisees must use. This includes the right to refuse any franchisee's request for a supplier approval. Reasons for refusal can include already having an exclusive source for a particular item or service, potentially even themselves or an affiliate. Big Blue Swim School can also refuse a request if they believe it is in the best interests of the Big Blue Swim School network.
Big Blue Swim School considers the potential disadvantages of having multiple suppliers in a market area, especially regarding cost and service. They retain the right to consider the impact of any supplier approval on their and their franchisees' ability to obtain the lowest distribution costs and best service. However, Big Blue Swim School does not guarantee the best pricing or most advantageous terms for franchisees, nor do they guarantee the performance of approved suppliers.
Ultimately, franchisees bear the risk if a supplier's products or services fail to meet brand standards or contractual terms. This means a Big Blue Swim School franchisee may be required to use suppliers chosen by the franchisor, even if the franchisee believes they could find a better or more cost-effective option independently.