When does the term of the Big Blue Swim School Development Rights Agreement expire?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| v. Choice of forum | 22.H of Franchise Agreement | Subject to arbitration requirements, litigation must be (with limited exception) in courts closest to where we (or then-current franchisor), have our principal business address when the action is commenced (it currently is in Atlanta, Georgia) (subject to applicable state law). |
| w. Choice of law | 22.G of Franchise Agreement 14(a) of SaaS Agreement | Federal law and Georgia law apply under Franchise Agreement (subject to applicable state law). |
| Georgia law governs SaaS Agreement (subject to applicable state law). | ||
| Provision | Section in Development Rights Agreement | Summary |
| a. Length of the franchise term | 6 | Term expires on date when final BIG BLUE Swim School under Schedule opens for business or is scheduled to open for business (whichever is earlier). |
| b. Renewal or extension of the | Not applicable | You have no right to renew or extend development rights. |
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 term of the Development Rights Agreement expires on the date when the final Big Blue Swim School under the development schedule opens for business or is scheduled to open for business, whichever occurs earlier. This means a prospective franchisee's rights to develop new Big Blue Swim School locations in their designated territory will cease once the last school they are obligated to open is operational or ready to open.
This expiration condition is significant for potential developers as it ties the duration of their development rights directly to their performance in opening new locations according to the agreed-upon schedule. If a developer completes their schedule ahead of time, their rights expire then. Conversely, any delays in meeting the schedule could impact the overall value and potential of their investment, as they would lose the ability to further expand in their territory beyond the already established schools.
It is important to note that the Development Rights Agreement does not offer any renewal or extension options. This contrasts with the standard Franchise Agreement, which allows for a 10-year renewal under certain conditions, including being in good standing, requesting a business review, and paying a $5,000 successor franchise fee. The absence of a renewal option for development rights underscores the importance of adhering to the development schedule and maximizing the territory's potential within the initial agreement term.
Prospective franchisees should carefully consider the development schedule outlined in their agreement and assess their ability to meet those deadlines. Understanding the implications of the expiration date is crucial for making informed decisions about the scale of their investment and the pace of their expansion plans with Big Blue Swim School.