factual

Is Big Blue Swim School required to reimburse franchisees for Computer System upgrades?

Big_Blue_Swim_School Franchise · 2025 FDD

Answer from 2025 FDD Document

You must upgrade the Computer System, and/or obtain service and support, as we require or when necessary because of technological developments, including complying with PCI Data Security Standards. There are no contractual limitations on the frequency and cost of this obligation. We need not reimburse your costs.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–51)

What This Means (2025 FDD)

According to Big Blue Swim School's 2025 Franchise Disclosure Document, franchisees are responsible for the costs associated with upgrading the computer system and obtaining necessary service and support. Big Blue Swim School is not required to reimburse franchisees for these expenses. The FDD states that franchisees must upgrade the computer system as required by Big Blue Swim School or when necessary due to technological advancements, including compliance with PCI Data Security Standards.

This means that as a Big Blue Swim School franchisee, you will need to budget for ongoing technology costs throughout the term of your franchise agreement. These costs can arise from mandatory upgrades dictated by the franchisor or from the need to update systems to keep pace with technological changes. The FDD specifies that there are no contractual limitations on the frequency and cost of this obligation, meaning these expenses could vary significantly.

While the initial investment for the computer and point-of-sale systems is estimated to range from $8,000 to $12,000, the ongoing maintenance, repairs, upgrades, and updates are estimated to be $250 per year. However, this $250 estimate does not include any technology refresh required during the franchise term. Given that Big Blue Swim School "need not reimburse your costs", it is crucial for prospective franchisees to factor in potentially significant and unreimbursed technology expenses when evaluating the financial feasibility of the franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.