Who is responsible for all obligations under the Lease for a Big Blue Swim School?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord acknowledges that Tenant alone is responsible for all obligations under the Lease unless and until Franchisor or another franchisee expressly, and in writing, assumes such obligations and takes actual possession of the Premises. Notwithstanding any provisions of this Lease to the contrary, Landlord hereby consents, without payment of a fee and without the need for further Landlord consent, to (i) the collateral assignment of Tenant's interest in this Lease to Franchisor to secure Tenant's obligations to Franchisor under the Franchise Agreement, and/or (ii) Franchisor's (or any entity owned or controlled by, or under common control or ownership with, Franchisor) succeeding to Tenant's interest in the Lease by mutual agreement of Franchisor and Tenant, or as a result of Franchisor's exercise of rights or remedies under such collateral assignment or as a result of Franchisor's termination of, or exercise of rights or remedies granted in or under, any other agreement between Franchisor and Tenant, and/or (iii) Tenant's, Franchisor's and/or any other franchisee of Franchisor's assignment of the Lease to another franchisee of Franchisor with whom Franchisor has executed its then-standard franchise agreement. Landlord, Tenant and Franchisor agree and acknowledge that simultaneously with such assignment pursuant to the immediately preceding sentence, Franchisor shall be released from all liability under the Lease or otherwise accruing after the date of such assignment (in the event Franchisor is acting as the assignor under such assignment), but neither Tenant nor any other franchisee shall be afforded such release in the event Tenant/such franchisee is the assignor unless otherwise agreed by Landlord. Landlord further agrees that all unexercised renewal or extension rights and other rights stated to be personal to Tenant shall not be terminated in the event of any assignment referenced herein, but shall inure to the benefit of the applicable assignee.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, the tenant, who is the franchisee, is responsible for all obligations under the lease for the premises. However, there are conditions where Big Blue Swim School Franchising, LLC (the Franchisor) or another franchisee may assume these obligations. This would occur if the Franchisor or another franchisee expressly assumes the obligations in writing and takes actual possession of the premises.
Furthermore, the landlord consents to the collateral assignment of the tenant's interest in the lease to the Franchisor to secure the tenant's obligations under the Franchise Agreement. The landlord also consents to the Franchisor (or an entity owned or controlled by the Franchisor) succeeding to the tenant's interest in the lease under certain conditions, such as by mutual agreement or as a result of the Franchisor exercising its rights or remedies. The landlord also agrees to the assignment of the lease to another Big Blue Swim School franchisee.
If the Franchisor assigns the lease, they are released from liability under the lease after the assignment date. However, neither the original tenant nor any other franchisee is released from liability if they are the assignor, unless the landlord agrees otherwise. The landlord also agrees that all unexercised renewal or extension rights remain valid even if there is an assignment.