Which sections of the Big Blue Swim School Franchise Agreement address fees?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
fundable. | | | Column 1 | Column 2 | Column 3 | Column 4 | | Type of Fee(1) | Amount(2) | Due Date | Remarks | |---|---|---|---| | Brand Fund Contributions | Up to 3% of School’s Gross Revenue(3) during each Calculation Period(4); we currently charge 2% of School’s weekly Gross Revenue | Due within certain number of days after end of each Calculation Period (4) | | | Member Services Center Fee (“MSC Fee”) | Up to 2% of School’s Gross Revenue(3) during each Calculation Period(4); we currently do not charge this fee | Due within certain number of days after end of each Calculation Period (4) | We have the right, directly or through a | | | | | designated source (including an affiliate), to | | | | | develop, implement, operate, maintain, and | | | | | improve a member services center for th | | | | | benefit of all BIG BLUE Swim Schools and | | | | | which all BIG BLUE Swim Schools mus | | | | | use. The MSC might perform various services | | | | | for BIG BLUE Swim Schools and their | | | | | customers, including scheduling free tria | | | | | lessons and reserving lesson times for | | | | | helping resolve customer complaints and | | | | | concerns, and maintaining a customer | | | | | database that provides management reports to | | | | | franchisees. We currently do not operate an | | | | | MSC or charge this fee. | | Podium | $285 per month; optional purchase of a telephone ranging from $30-$160 | Monthly | Podium is our mandatory customer relations software. You will pay us monthly with the second invoice of the month. We have the right to increase this fee to the extent the vendor increases its charge to us. These amounts are a pass-through to you; we do not upcharge the vendor’s fees. You may (but have no obligation to) purchase a telephone for your School. | | Uberall | $20 per month | Monthly | Uberall is our mandatory social posting and | | | | | listing management service. You will pay us | | | | | monthly with the second invoice of the | | | | | month. We have the right to increase this fee | | | | | to the extent the vendor increases its charge to | | | | | us. These amounts are a pass-through to you; | | | | | we do not upcharge the vendor’s fees. | | Column 1 | Column 2 | Column 3 | Column 4 | | Type of Fee(1) | Amount(2) | Due Date | Remarks | |---|---|---|---| | Email Licenses | 5 licenses are included free of charge; for each license over the first 5, you must pay us $6 per month for a basic license and $12 a month for a standard license | Monthly | This is an optional charge. If you wish to have more than 5 email licenses for your School, we will bill you in the same manner as we bill you for your royalty payments. We may increase these charges to no more than $10 per month for a basic license and $20 per month for a standard license. | | Local Marketing Spend | 6% of School’s quarterly Gross Revenue | Quarterly | | | Cooperative Contributions(5) | An amount we specify up to 4% of School’s Gross Revenue(3) during each Calculation Period(4) | As specified | We have not yet formed any Cooperatives and do not yet require Cooperative contributions. Footnotes 5 and 6 below describe your local advertising obligations. | | Franchise Agreement Preparation Fee | $2,500 | When you sign a franchise agreement for a subsequent location | | | Successor Franchise Fee | $5,000 | When you sign successor franchise agreement (if you have that right) | | | Transfer of Franchise Rights or Controlling Ownership Interest in Franchisee | $25,000 (or $12,500 if proposed transfer is among your existing owners, immediate family members, or an entity you control) | Upon transfer | | | Column 1 | Column 2 | Column 3 | Column 4 | |--------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Type of Fee(1) | Amount(2) | Due Date | Remarks | | Transfer of Non Controlling Ownership Interest in Franchisee | $5,000 | Upon transfer | | | Ongoing and Supplemental Training and Assistance | Our then-current fee for ongoing and supplemental training and assistance; not to exceed $500 per trainer per day or $2,000 in total if at our location and not to exceed $750 per trainer per day plus our expenses if elsewhere | As incurred | We have the right to charge you for ongoing and supplemental training and assistance that you request or that we determine you need to address issues specific to your School. | | Retraining of Managers | Our then-current retraining fee; not to exceed $500 per trainer per day or $2,000 in total if at our location and not to exceed $750 per trainer per day plus our expenses if elsewhere | As incurred | Due if (i) your general manager or assistant manager fails to complete initial training program, or (ii) we must train their replacements. | | Periodic Meeting / Convention | Will vary under circumstances (not to exceed $2,500 per person; does not include your actual out-of-pocket attendance costs paid to third parties) | As incurred | You (or your designated representative we approve) must at our request attend a periodic meeting of all BIG BLUE Swim School franchisees and pay an attendance fee. We will charge this fee even if you do
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 34–37)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School FDD, Item 6 outlines various fees that franchisees may encounter. These include the Brand Fund Contributions, which can be up to 3% of the School’s Gross Revenue, and the Member Services Center Fee, which can be up to 2% of Gross Revenue, though currently not charged. Additionally, franchisees may incur monthly costs for Podium ($285) and Uberall ($20), which are mandatory customer relations and social posting services, respectively.
Other potential fees include Email Licenses (if more than 5 are needed), Local Marketing Spend (6% of quarterly Gross Revenue), and Cooperative Contributions (up to 4% of Gross Revenue, though not yet required). Furthermore, franchisees will be charged a Franchise Agreement Preparation Fee of $2,500 for subsequent locations, a Successor Franchise Fee of $5,000, and fees for transferring franchise rights or ownership interests, ranging from $5,000 to $25,000.
Big Blue Swim School franchisees may also encounter fees for ongoing training and assistance, not exceeding $500 per trainer per day or $2,000 in total at the franchisor's location, or $750 per trainer per day plus expenses elsewhere. Retraining fees for managers can also reach these amounts. Attendance at periodic meetings or conventions can cost up to $2,500 per person, excluding out-of-pocket attendance costs. The FDD specifies the amounts, due dates, and conditions for these various fees, providing transparency for prospective franchisees.
Prospective franchisees should carefully review Item 6 in the FDD to understand all potential fees and their implications on their investment and operating costs. Understanding these fees is crucial for accurate financial planning and assessing the overall profitability of a Big Blue Swim School franchise.