What section of the Big Blue Swim School Franchise Agreement covers the royalty fee?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
tes, and principal suppliers have been paid; and
- (7) you are not in default under any agreement with us, our affiliates, or principal suppliers.
5. Fees
5.A. Initial Franchise Fee
You must pay us a Fifty Thousand Dollar ($50,000) initial franchise fee (the "Initial Franchise Fee") concurrently with your execution of this Agreement. The Initial Franchise Fee is not refundable under any circumstances. If you signed this Agreement pursuant to a Development Rights Agreement and this Agreement is for your second or subsequent BIG BLUE Swim School, your Initial Franchise Fee will be Forty Thousand Dollars ($40,000).
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 specific section detailing the royalty fee within the Franchise Agreement is not explicitly provided in the excerpts. However, Item 22 discusses various fees and payment methods related to the franchise agreement.
Section 5 of Item 22 generally discusses fees, including the Initial Franchise Fee in Section 5.A and mentions "5.B. Royalty" without providing further details in the excerpt. Section 5.E discusses the payment method and timing for the Royalty, Software License Fee, Brand Fund contribution, MSC Fee, and other amounts due under the agreement. This section indicates that Big Blue Swim School is authorized to debit the franchisee's account for these fees.
While the excerpts mention the royalty and other fees, the specific details regarding how the royalty is calculated, when it is due, and other specific terms are not included. A prospective franchisee should carefully review the full franchise agreement and ask Big Blue Swim School for clarification on the specific section that details the royalty fee structure, payment terms, and any conditions related to royalty payments.