What is the standard initial franchise fee for a Big Blue Swim School?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Tho
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School FDD, the standard initial franchise fee is $50,000. This fee is payable upon the execution of the Franchise Agreement. The FDD specifies that this initial franchise fee is non-refundable under any circumstances.
However, the initial franchise fee may differ if the franchisee has signed the agreement pursuant to a Development Rights Agreement and the agreement is for a second or subsequent Big Blue Swim School. In this case, the initial franchise fee is reduced to $40,000. Furthermore, any deposit paid under the Development Rights Agreement will be credited toward the initial franchise fee.
In the franchise industry, initial fees typically cover the franchisor's costs for granting the franchise, including training and support. The non-refundable nature of the fee is a common practice, reflecting the franchisor's investment in setting up the franchisee. Prospective franchisees should consider this non-refundable aspect carefully, as it represents a sunk cost from the outset.