Does Big Blue Swim School have the right to pre-approve the confidentiality agreements used by franchisees?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to keep current on the Operations Manual and timely communicate all updates to your employees. You must monitor the System Website and our other communications periodically for updates to the Operations Manual or Brand Standards. You agree to keep the Operations Manual secure and restrict access to any passwords for accessing the Operations Manual. If there is a dispute over its contents, our version of the Operations Manual controls. You agree that the Operations Manual's contents are confidential and not to disclose any part of the Operations Manual to any person other than School employees and others needing access in order to perform their duties, but only if they agree to maintain its confidentiality by signing a form of confidentiality agreement. We have the right to pre-approve the form used. You may not at any time copy, duplicate, record, or otherwise reproduce any part of the Operations Manual, except for certain forms specified in the Operations Manual.
While we have the right to pre-approve the form of confidentiality agreement you use with School employees and others having access to our Confidential Information in order to protect that Confidential Information, under no circumstances will we control the forms or terms of employment agreements you use with School employees or otherwise be responsible for your labor relations.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, Big Blue Swim School has the right to pre-approve the confidentiality agreements that franchisees use with their employees and others who have access to confidential information. This pre-approval ensures that franchisees adequately protect the confidential information and competitiveness of Big Blue Swim School. However, Big Blue Swim School will not control the forms or terms of employment agreements franchisees use with school employees or be responsible for labor relations or employment practices.
This means that while franchisees must use confidentiality agreements that Big Blue Swim School deems sufficient to protect its interests, franchisees retain control over the other terms of employment for their staff. This is a common arrangement in franchising, where the franchisor seeks to protect its proprietary information and brand standards, while the franchisee manages the day-to-day employment matters.
For a prospective Big Blue Swim School franchisee, this implies that they will need to submit their confidentiality agreement forms to the franchisor for approval. This may add an extra step to the onboarding process for new employees or others requiring access to confidential information. However, it also provides a level of assurance that the franchisee is using agreements that meet the franchisor's standards for protecting sensitive information. Franchisees should factor in time for this approval process when hiring and training staff.