Who is responsible for paying the Big Blue Swim School transfer fee?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) before the transfer's proposed effective date, you or the transferee pays us a transfer fee equal to Twenty-Five Thousand Dollars ($25,000);
If the proposed transfer is to or among your owners, your or their Immediate Family members, or an Entity you control, then the transfer fee in clause (g) will be Twelve Thousand Five Hundred Dollars ($12,500).
We will approve the transfer of a non-controlling ownership interest in you if the proposed transferee and its owners are of good moral character, have no ownership interest in and do not perform services for (and have no affiliates with an ownership interest in or performing services for) a Competitive Business, otherwise meet our then-applicable standards for non-controlling owners of BIG BLUE Swim School franchisees, sign our then-current form of Guaranty and Assumption of Obligations and pay us a Five Thousand Dollar ($5,000) transfer fee.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, the responsibility for paying the transfer fee depends on the type of transfer. If the transfer involves the franchise rights or a controlling ownership interest, either the franchisee or the transferee is responsible for paying Big Blue Swim School a $25,000 transfer fee. The specific party responsible is determined before the transfer's effective date. If the transfer is to or among the franchisee's owners, their immediate family members, or an entity they control, the transfer fee is $12,500. If the transfer involves a non-controlling ownership interest, the proposed transferee pays Big Blue Swim School a $5,000 transfer fee.
This means that a prospective Big Blue Swim School franchisee needs to understand the implications of transferring their franchise or ownership interest. The cost can be significant, especially for transfers involving franchise rights or controlling interests. It is important to negotiate clearly, before the transfer, who will bear the responsibility for this fee to avoid disputes and ensure a smooth transfer process.
It is also important to note that the transfer is subject to other conditions, such as the transferee meeting Big Blue Swim School's standards, signing required documents, and agreeing to upgrade the school if necessary. These conditions, along with the transfer fee, highlight the importance of carefully planning any potential transfer of the Big Blue Swim School franchise.