Who is responsible for the expense of developing a Big Blue Swim School?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you begin operating the School, we will (directly or through a third party):
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- Provide various real estate services. (Franchise Agreement—Section 4; Development Rights Agreement—Section 5) These services do not include conforming the School's premises to local ordinances and building codes obtaining required permits, for which you will be responsible. The School always will be developed at your expense.
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- Offer Small Business Administration loan-expeditor services if you apply for SBA-assisted financing.
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- You must locate, evaluate, and select each School's site. You must give us all information and materials we request to assess each proposed School site. We will not search for or select the site for you. However, using local commercial real estate brokers, we may propose potential School sites for your consideration in your Site Selection Area (under the Franchise Agreement) or Territory (under the Development Rights Agreement). Proposal of a School's site will be based on our then-current criteria for BIG BLUE Swim School sites, including population density and other demographic characteristics, visibility, traffic flow, competition, accessibility, ingress and egress, size, and other physical and commercial characteristics.
We will review potential BIG BLUE Swim School sites that you identify within the Territory and may, but have no obligation to, visit the Territory once (for no additional fee) to review potential sites for each BIG BLUE Swim School to be constructed and developed under the DRA. We have the right to require you to reimburse our out-of-pocket expenses for each site visit after the first per-Swim School visit. We have the right to condition our acceptance of a proposed site, or a proposed site visit, on your first sending us complete site reports and other materials (including photographs and digital recordings) we request. We agree to use reasonable efforts to review and accept (or not accept) sites you propose within 30 days after we receive all requested information and materials. You may not proceed with a site that we have not accepted.
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, the franchisee is responsible for all expenses associated with developing the swim school. This includes conforming the premises to local ordinances and building codes, as well as obtaining the necessary permits. While Big Blue Swim School offers real estate services, these do not extend to covering the costs of development or ensuring compliance with local regulations.
This means that prospective Big Blue Swim School franchisees need to be prepared to cover potentially significant costs related to site development. These costs can vary widely depending on location, local regulations, and the condition of the property. Franchisees should conduct thorough due diligence to understand the full scope of these expenses before committing to a location. Accurately estimating these costs is crucial for developing a realistic financial plan for the franchise.
While Big Blue Swim School may propose potential sites using local commercial real estate brokers, the final decision on site selection rests with the franchisee. The franchisor will review potential sites identified by the franchisee and may visit the territory once without an additional fee to review potential sites. However, Big Blue Swim School has the right to require reimbursement for out-of-pocket expenses for each site visit after the first per-Swim School visit. The franchisor also has the right to condition acceptance of a proposed site on the franchisee first sending complete site reports and other requested materials. The franchisee cannot proceed with a site that Big Blue Swim School has not accepted.