Under what circumstances can a Big Blue Swim School franchisee terminate the Franchise Agreement?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| 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. | ||
| i. Franchisee’s obligations on | 20 of Franchise | Obligations include paying outstanding amounts |
| termination/nonrenewal | Agreement | |
| (plus, if applicable, liquidated damages); complete | ||
| de-identification; returning confidential | ||
| information; destroying (at your own cost) | ||
| branded materials and proprietary items; assigning | ||
| telephone and telecopy numbers and directory | ||
| listings; and assigning or cancelling any website | ||
| or other online presence or electronic media | ||
| associating you with us or the Marks (also see (o) | ||
| and (r) below); we have the right to control de- | ||
| identification process if you do not voluntarily | ||
| take required action; we have the right to assume | ||
| School’s management while deciding whether to | ||
| buy School’s assets. |
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, a franchisee can terminate the Franchise Agreement under specific conditions, primarily if Big Blue Swim School breaches the agreement and fails to correct the issue within the given cure period after receiving notice from the franchisee, subject to state law. The franchisee does not have the right to terminate the agreement without cause. Additionally, a Big Blue Swim School franchisee has the right to terminate the Franchise Agreement immediately upon written notice if the cost to repair damage to the school from a fire or other casualty exceeds a certain damage threshold.
Big Blue Swim School outlines specific obligations the franchisee must meet upon termination or nonrenewal of the Franchise Agreement. These include paying all outstanding amounts, which may include liquidated damages, completing de-identification of the premises, returning confidential information, and destroying branded materials at the franchisee's own cost. The franchisee must also assign telephone and telecopy numbers and directory listings, as well as assign or cancel any website or other online presence associating them with Big Blue Swim School.
It is important for prospective franchisees to understand these termination conditions, as they dictate the circumstances under which they can end the agreement without penalty. Franchisees should also be aware of their obligations upon termination, which involve significant actions and potential costs to disassociate from the Big Blue Swim School brand. Understanding these terms is crucial for making an informed decision about investing in a Big Blue Swim School franchise.