Under the DRA, what agreement will govern the operation of each Big Blue Swim School location?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
me), you agree within the time period we specify (but no later than the deadline on the Schedule) to sign (or cause your Approved Affiliate to sign) a separate franchise agreement (and related documents) for that BIG BLUE Swim School. If you (or your Approved Affiliate) fail to do so, or cannot obtain lawful possession of the proposed site, we have the right to withdraw our acceptance of the proposed site and exercise any of our other rights under this DRA.
After you and your owners (or your Approved Affiliate and its owners) sign the franchise agreement (and related documents) and SaaS Agreement for a BIG BLUE Swim School, their terms and conditions will control the construction, development, and operation of the BIG BLUE Swim School (except that the required opening deadline is governed exclusively by the Schedule in this DRA, except as expressly provided in Section 2(d) above).
- (f) In addition to our rights with respect to proposed BIG BLUE Swim School sites, we have the right to delay the construction, development, and/or opening of additional BIG BLUE Swim Schools within the Territory for the time period we deem best if at any time we believe that such delay is in the best interests of the brand or the franchise network, including for reasons related to lack of sites that meet our criteria, supply chain issues, or our assessment in our sole judgment that you (or your Approved Affiliate) are not yet operationally, managerially, or otherwise prepared (no matter the reason) for the construction, development, opening, and/or operation of the additional BIG BLUE Swim School in full compliance with our standards and specifications. We have the right to delay additional development and/or a BIG BLUE Swim School's opening for the time period we deem best as long as the delay will not in our reasonable opinion cause you to breach your development obligations under the Schedule (unless we are willing to extend the Schedule proportionately to account for the delay).
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Source: Item 23 — RECEIPTS (FDD pages 76–278)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School FDD, each Big Blue Swim School location developed under the Development Rights Agreement (DRA) will be governed by a separate franchise agreement. The specific terms and conditions of this franchise agreement, along with related documents and a SaaS Agreement, will dictate the construction, development, and operation of each swim school. However, the opening deadline for each location is governed exclusively by the schedule outlined in the DRA, with limited exceptions as provided in Section 2(d) of the DRA.
Big Blue Swim School requires that franchisees (or their Approved Affiliates) sign leases, franchise agreements, and SaaS Agreements to maintain their rights under the DRA. If a franchisee has gained lawful possession of a site but has not yet signed a franchise agreement, they must sign a separate franchise agreement (and related documents) within a specified time period. Failure to do so gives Big Blue Swim School the right to withdraw acceptance of the proposed site.
It is important to note that the franchise agreement signed for each Big Blue Swim School under the DRA will be Big Blue Swim School's then-current form of franchise agreement. The terms of this agreement may differ significantly from any initial franchise agreement the franchisee may have signed. However, certain key financial obligations, such as the Royalty, Brand Fund contribution, Software License Fee, Local Marketing Spending Requirement, and minimum required Market Introduction Program expense, will remain consistent with Big Blue Swim School's then-current form of franchise agreement.