Under what conditions can a Big Blue Swim School franchisee terminate the Franchise Agreement?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| c. Requirements for franchisee | 18 of Franchise | You (i) timely request and conduct a business |
|---|---|---|
| to renew or extend | Agreement | |
| review, (ii) formally notify us of your desire to | ||
| acquire a successor franchise at least 3 months | ||
| before the franchise term ends, (iii) substantially | ||
| complied with contractual obligations and | ||
| operated School in substantial compliance with | ||
| Brand Standards, (iv) continue complying | ||
| substantially with contractual obligations between | ||
| time you notify us of your desire to acquire a | ||
| successor franchise and the end of the franchise | ||
| term, (v) retain right to occupy School at its | ||
| original site, (vi) remodel/upgrade School, (vii) | ||
| sign our then-current form of franchise agreement | ||
| and release (if applicable state law allows), and | ||
| (viii) pay $5,000 successor franchise fee. Terms | ||
| of our new franchise agreement that you sign for | ||
| successor franchise may differ materially from | ||
| any and all terms contained in your original | ||
| expiring Franchise Agreement (including higher | ||
| fees), although the Area of Protection will remain | ||
| the same during the successor-franchiseterm. | ||
| 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. |
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. Subject to state laws, a franchisee can terminate the agreement if Big Blue Swim School breaches the Franchise Agreement and fails to correct the default within the given cure period after receiving notice from the franchisee. However, the franchisee is not allowed to terminate the agreement without cause.
Additionally, a Big Blue Swim School franchisee has the right to terminate the Franchise Agreement immediately by providing written notice if the cost to repair damage to the school resulting from a fire or other casualty exceeds a certain damage threshold. The FDD does not specify the exact threshold, but it stipulates that this right is contingent upon the extent of the damage.
It is important for prospective Big Blue Swim School franchisees to understand these termination conditions, as they outline the circumstances under which they can legally end the franchise agreement. Franchisees should consult with legal counsel to fully understand their rights and obligations regarding termination, as state laws can vary and may impact the enforceability of certain provisions.