What is the significance of the date the transfer request is sent to Big Blue Swim School?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) on both the date you send us the transfer request and the transfer's proposed effective date: (i) the transferee and its direct and indirect owners have the necessary business experience, aptitude, and financial resources to operate the School, (ii) the transferee otherwise is qualified under our then-existing standards for the approval of new franchisees or of existing franchisees interested in acquiring additional franchises (including the transferee and its affiliates are in substantial operational compliance, at the time of the application, under all other franchise agreements for BIG BLUE Swim Schools to which they then are parties with us), and (iii) the transferee and its owners are not restricted by another agreement (whether or not with us) from purchasing the School or the ownership interest in you or the Entity that owns a controlling ownership interest in you;
- (b) on both the date you send us the transfer request and the transfer's proposed effective date, you have paid all required Royalties, Software License Fees, Brand Fund contributions, MSC Fees, and other amounts owed to us and our affiliates relating to this Agreement and the School, have submitted all required reports and statements, and are not in breach of any provision of this Agreement or another agreement with us or our affiliates relating to the School;
- (c) on both the date you send us the transfer request and the transfer's proposed effective date, neither the transferee nor any of its direct or indirect owners or affiliates operates, has an ownership interest in, or performs services for a Competitive Business;
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, the date the transfer request is sent is critical because several conditions must be met on that date for the transfer to be approved. Specifically, both on the date the transfer request is sent to Big Blue Swim School and on the proposed effective date of the transfer, the following must be true:
First, the potential new owner (transferee) must demonstrate they have the necessary business experience, skills, and financial resources to successfully run the Big Blue Swim School. They also need to meet the then-current standards that Big Blue Swim School has in place for approving new franchisees or existing franchisees who want to expand. This includes being in substantial compliance with any other Big Blue Swim School franchise agreements they may have. Additionally, the transferee and their owners can't be restricted by any other agreements that would prevent them from purchasing the Big Blue Swim School.
Second, the current owner (you) must be in good financial standing with Big Blue Swim School. This means all royalties, software license fees, brand fund contributions, MSC fees, and any other amounts owed to Big Blue Swim School and its affiliates must be paid. All required reports and statements must be submitted, and you cannot be in breach of the current franchise agreement or any other agreements with Big Blue Swim School or its affiliates related to the school.
Third, neither the potential new owner (transferee) nor any of their direct or indirect owners or affiliates can be involved in operating, owning, or providing services to a competing business. These conditions highlight the importance of careful planning and preparation when considering a transfer of a Big Blue Swim School franchise. Franchisees must ensure both their own compliance and the transferee's qualifications are in order before submitting the transfer request to avoid delays or potential disapproval.