Under what conditions can Big Blue Swim School terminate the Development Rights Agreement?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to terminate the DRA if you do not satisfy any deadline under the DRA.
If you (or your Approved Affiliate) reject a Qualified Site (defined in Item 11 above) for a BIG BLUE Swim School to be constructed and developed within the Territory and do not correct that failure by accepting the Qualified Site within 10 days after we deliver written notice of default, then we have the right to establish and operate, or grant to another franchisee the right to establish and operate, a BIG BLUE Swim School at that Qualified Site and to sign a lease for that Qualified Site (together, the "Qualified Site Lease Rights").
Source: Item 12 — TERRITORY (FDD pages 51–55)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, Big Blue Swim School has the right to terminate the Development Rights Agreement (DRA) if the franchisee fails to meet any deadline specified within the DRA. This means that if a franchisee does not adhere to the agreed-upon schedule for signing leases, franchise agreements, SaaS agreements, or opening new Big Blue Swim School locations, Big Blue Swim School can terminate the DRA.
Additionally, if a franchisee rejects a Qualified Site for a Big Blue Swim School within their territory and does not rectify this by accepting the site within 10 days after receiving written notice of default from Big Blue Swim School, the franchisor reserves the right to terminate the DRA. This allows Big Blue Swim School to proceed with establishing a location at the Qualified Site, either independently or through another franchisee, even if the original franchisee is not otherwise in default of the development schedule.
These conditions highlight the importance of adhering to the development schedule and promptly addressing any issues related to site selection. A prospective franchisee should carefully review the DRA to fully understand the specific deadlines and obligations, as failure to meet these requirements could result in the termination of their development rights.