What section of the Big Blue Swim School Franchise Agreement discusses termination by the franchisee?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| c. Requirements for franchisee | 18 of Franchise | You (i) timely request and conduct a business |
|---|---|---|
| to renew or extend | Agreement | |
| review, (ii) formally notify us of your desire to | ||
| acquire a successor franchise at least 3 months | ||
| before the franchise term ends, (iii) substantially | ||
| complied with contractual obligations and | ||
| operated School in substantial compliance with | ||
| Brand Standards, (iv) continue complying | ||
| substantially with contractual obligations between | ||
| time you notify us of your desire to acquire a | ||
| successor franchise and the end of the franchise | ||
| term, (v) retain right to occupy School at its | ||
| original site, (vi) remodel/upgrade School, (vii) | ||
| sign our then-current form of franchise agreement | ||
| and release (if applicable state law allows), and | ||
| (viii) pay $5,000 successor franchise fee. Terms | ||
| of our new franchise agreement that you sign for | ||
| successor franchise may differ materially from | ||
| any and all terms contained in your original | ||
| expiring Franchise Agreement (including higher | ||
| fees), although the Area of Protection will remain | ||
| the same during the successor-franchiseterm. | ||
| d. Termination by franchisee | 16 and 19.A of Franchise | Subject to state law, if we breach Franchise |
| Agreement | ||
| Agreement and do not cure default within | ||
| applicable cure period after notice from you; you | ||
| may not terminate without cause. | ||
| In addition, you have the right to terminate the | ||
| Franchise Agreement immediately upon written | ||
| notice if the cost to repair the damage to the | ||
| School from a fire or other casualty exceeds a | ||
| certain damage threshold. |
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, the conditions for termination by the franchisee are detailed in Sections 16 and 19.A of the Franchise Agreement. These sections outline the circumstances under which a franchisee can terminate the agreement, which are primarily related to breaches by Big Blue Swim School that remain uncured after the franchisee provides notice.
Specifically, a Big Blue Swim School franchisee can terminate the Franchise Agreement if the franchisor breaches the agreement and fails to correct the issue within the given cure period, subject to state law. However, the franchisee cannot terminate the agreement without cause. Additionally, the franchisee has the right to terminate the Franchise Agreement immediately with written notice if the cost to repair damage to the swim school from a fire or other casualty exceeds a certain threshold.
This means that a Big Blue Swim School franchisee has limited options for terminating the agreement, mainly when Big Blue Swim School is at fault or in cases of significant damage to the school. It is important for prospective franchisees to understand these conditions, as they differ from termination rights that might be available in other franchise systems. The franchisee does not have the right to terminate the franchise agreement without cause.