Does Big Blue Swim School have the right to terminate the Franchise Agreement without cause?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| e. Termination by franchisor | 19.B of Franchise | We do not have the right to terminate your |
| without cause | Agreement | Franchise Agreement without cause. |
| Provision | Section in Development Rights Agreement | Summary |
| --- | --- | --- |
| e. Termination by franchisor | Not applicable | We have no right to terminate Development Rights Agreement without cause. |
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, Big Blue Swim School does not have the right to terminate the Franchise Agreement without cause. The FDD specifies that Big Blue Swim School can only terminate the Franchise Agreement if the franchisee or their owners commit certain violations. This is a common arrangement in franchising, as it protects franchisees from arbitrary termination.
However, Big Blue Swim School does have the right to terminate the Development Rights Agreement without cause. This agreement outlines the franchisee's rights to develop Big Blue Swim School locations within a specific territory. The franchisor can terminate the Development Rights Agreement if the franchisee commits certain violations. These violations include failing to meet deadlines in the development schedule, breaching obligations, terminating a franchise agreement with Big Blue Swim School, failing to cure a default under a franchise agreement, or ceasing operation of a Big Blue Swim School without prior written approval.
It is important for prospective franchisees to understand the distinction between the Franchise Agreement and the Development Rights Agreement. While the Franchise Agreement for an existing Big Blue Swim School cannot be terminated without cause, the Development Rights Agreement can be terminated with cause if certain conditions are not met. Franchisees should carefully review the conditions under which both agreements can be terminated to fully understand their rights and obligations.