What are the requirements for a Big Blue Swim School franchisee to renew or extend their franchise term?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
to market based on numerous | | | considerations. | | | Provision | Section in franchise or | Summary | | a. Length of the franchise term | 3.B of Franchise Agreement 3(a) of SaaS Agreement | 10 years from first day on which School opens to the public for business. Term of SaaS Agreement runs concurrently with franchise term. | |---|---|---| | b. Renewal or extension of the term | 18 of Franchise Agreement | If you are in good standing, you may acquire successor franchise for 10 years on our then- current terms. | | Provision | Section in franchise or | Summary | | | other agreement | | |---|---|---| | c. Requirements for franchisee | 18 of Franchise | You (i) timely request and conduct a business | | to renew or extend | Agreement | | | | | review, (ii) formally notify us of your desire to | | | | acquire a successor franchise at least 3 months | | | | before the franchise term ends, (iii) substantially | | | | complied with contractual obligations and | | | | operated School in substantial compliance with | | | | Brand Standards, (iv) continue complying | | | | substantially with contractual obligations between | | | | time you notify us of your desire to acquire a | | | | successor franchise and the end of the franchise | | | | term, (v) retain right to occupy School at its | | | | original site, (vi) remodel/upgrade School, (vii) | | | | sign our then-current form of franchise agreement | | | | and release (
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 61–69)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, a franchisee has the option to acquire a successor franchise for an additional 10 years if they are in good standing with Big Blue Swim School. This renewal would be based on the then-current terms and conditions set by Big Blue Swim School at the time of renewal.
To be eligible for a successor franchise, the franchisee must meet several requirements. These include (i) timely requesting and conducting a business review, (ii) formally notifying Big Blue Swim School of their desire to acquire a successor franchise at least 3 months before the end of the current franchise term, and (iii) substantially complying with all contractual obligations and operating the swim school in substantial compliance with Big Blue Swim School's Brand Standards. The franchisee must also continue to substantially comply with all contractual obligations from the time they notify Big Blue Swim School of their intent to renew until the end of the current franchise term.
Additional requirements include (v) retaining the right to occupy the swim school at its original site and (vi) remodeling or upgrading the school to meet current standards. The franchisee must also (vii) sign Big Blue Swim School's then-current franchise agreement, which may include a release if allowed by applicable state law. Finally, the franchisee must (viii) pay a $5,000 successor franchise fee.
It is important to note that the terms of the new franchise agreement for the successor franchise may differ significantly from the original agreement, potentially including higher fees. However, the Area of Protection will remain the same during the successor franchise term. Prospective franchisees should carefully consider these renewal requirements and the potential for changes in terms when evaluating the long-term prospects of a Big Blue Swim School franchise.