Under what conditions is the Rider applicable to the Big Blue Swim School Franchise Agreement?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
riod a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship.
THE FOLLOWING PAGES IN THIS EXHIBIT ARE STATE-SPECIFIC RIDERS TO THE FRANCHISE AGREEMENT
RIDER TO THE BIG BLUE SWIM SCHOOL FRANCHISING, LLC FRANCHISE AGREEMENT FOR USE IN CALIFORNIA
| THIS RIDER is made by and between BIG BLUE SWIM SCHOOL FRANCHISING, |
|---|
| LLC, an Illinois limited liability company whose principal business address is 112 Krog Street |
| NE, Suite D-135, Atlanta, Georgia 30307 ("we," "us," or "our"), and, |
| a(n) ("you" or "your"). |
| 1. |
| BACKGROUND. We and you are parties to that certain Franchise Agreement |
| dated (the "Franchise Agreement"). This Rider is annexed to and |
| forms part of the Franchise Agreement. This Rider is being signed because (a) the offer or sale of |
| the franchise for the BIG BLUE Swim School you will operate under the Franchise Agreement |
| was made in the State of California and you are a California resident, and/or (b) the BIG BLUE |
| Swim School will operate in California. |
| 2. |
| FEES. The following language is added to the end of Section 5.A. of the Franchise |
| Agreement: |
Despite the payment provisions above, we will defer your payment of the initial franchise fee until we have fulfilled all our initial obligations to you under this Agreement and you have commenced doing business. You must pay us the initial franchise fee on the day you open the BIG BLUE Swim School for business.
- The following language is added to the end of the Franchise Agreement:
For franchisees operating outlets located in California, the California Franchise Investment Law and the California Franchise Relations Act will apply regardless of the choice of law or dispute resolution venue stated elsewhere. Any language in the Franchise Agreement or any amendment thereto or any agreement to the contrary is superseded by this condition.
The Franchise Agreement contains a covenant not to compete which extends beyond the termination of the franchise. A contract that restrains a former franchisee from engaging in a lawful trade or business is to that extent void under California Business and Professions Code Section 16600.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise
IN WITNESS WHEREOF, the parties have executed and delivered this Rider, to be effective as of the date set forth next to our signature below.
| Year ending December 31: | Amount | |
|---|---|---|
| 2025 | $ | 83,277 |
RIDER TO THE BIG BLUE SWIM SCHOOL FRANCHISING, LLC FRANCHISE AGREEMENT FOR USE IN ILLINOIS
| Thereafter | 2,018,346 | |---|---| | Total | $2,431,072 | 3. WAIVER OF PUNITIVE AND EXEMPLARY DAMAGES AND JURY TRIAL. The following language is added to the end of Sections 22.I. and 22.J. of the Franchise Agreement:
HOWEVER, THIS WAIVER SHALL NOT APPLY TO THE EXTENT PROHIBITED BY SECTION 705/41 OF THE ILLINOIS FRANCHISE DISCLOSURE ACT OF 1987 OR ILLINOIS REGULATIONS AT SECTION 260.609.
- ILLINOIS FRANCHISE DISCLOSURE ACT. The following language is added as new Section 27 of the Franchise Agreement:
27.
Source: Item 23 — RECEIPTS (FDD pages 76–278)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, the Rider to the Franchise Agreement is applicable under specific conditions related to the franchisee's location or activities. For franchisees operating a Big Blue Swim School in California, or if the offer or sale of the franchise was made in California and the franchisee is a California resident, a specific rider applies. This ensures that the California Franchise Investment Law and the California Franchise Relations Act take precedence, superseding any conflicting terms in the Franchise Agreement.
Similarly, for franchisees operating in Maryland or if any franchise offer or sales activity occurred in Maryland, a different rider is applicable. This rider modifies specific sections of the Franchise Agreement to comply with Maryland franchise laws, including provisions related to governing law, consent to jurisdiction, and limitation of claims under the Maryland Franchise Registration and Disclosure Law. Another rider is applicable if the Big Blue Swim School will be located in Minnesota, or if any of the franchise offer or sales activity occurred in Minnesota.
These riders are designed to ensure that the Big Blue Swim School franchise agreements comply with specific state laws, providing additional protections and clarifying rights for franchisees in those states. It is important for prospective franchisees to carefully review the rider applicable to their specific location or circumstances, as these riders can significantly alter the terms of the standard Franchise Agreement. Each rider is executed and delivered by both Big Blue Swim School Franchising, LLC and the franchisee, becoming effective as of the date specified in the document.