Under what grounds can a Big Blue Swim School franchisee terminate the franchise agreement?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) you (or your Approved Affiliate) reject a Qualified Site for the first BIG BLUE Swim School to be constructed and developed within the Territory pursuant to this DRA; or
- (c) the First Franchise Agreement or another franchise agreement between us and you (or your Approved Affiliate) for a BIG BLUE Swim School is terminated by us in compliance with its terms or by you (or your Approved Affiliate) for any (or no) reason; or
- (d) we have delivered a formal written notice of default to you (or your Approved Affiliate) under the First Franchise Agreement or another franchise agreement between us and you (or your Approved Affiliate) for a BIG BLUE Swim School, and you (or your Approved Affiliate) fail to cure that default within the required timeframe; or
- (e) you (or your Approved Affiliate), without our prior written approval, cease operating any BIG BLUE Swim School.
No portion of the Development Fee is refundable upon termination of this DRA or under any other circumstances (except as provided in Section 8(c) below). If we terminate this DRA solely because you fail to satisfy any deadline under the Schedule or reject a Qualified Site for the first BIG BLUE Swim School to be constructed and developed in the Territory pursuant to this DRA, we will keep the full Development Fee but otherwise will not seek to recover damages from you due solely to such failures.
Termination of this DRA under any of clauses (a) through (e) above is not deemed to be the termination of any franchise rights because this DRA grants you no separate franchise rights. Franchise rights arise only under franchise agreements signed directly with us. While you will lose all further rights to develop BIG BLUE Swim Schools within the Territory if this DRA is terminated, termination of this DRA does not affect any franchise rights previously granted under any then-effective individual franchise agreements.
Source: Item 23 — RECEIPTS (FDD pages 76–278)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, a franchisee (or their Approved Affiliate) can terminate the Development Rights Agreement (DRA) under specific circumstances. These circumstances include rejecting a Qualified Site for the first Big Blue Swim School to be constructed and developed within the Territory. Additionally, the franchisee can terminate the DRA if the First Franchise Agreement or another franchise agreement between Big Blue Swim School and the franchisee is terminated by either party, regardless of the reason.
Another ground for termination arises if Big Blue Swim School delivers a formal written notice of default to the franchisee under the First Franchise Agreement or another franchise agreement, and the franchisee fails to cure that default within the required timeframe. Furthermore, the franchisee can terminate the DRA if they cease operating any Big Blue Swim School without prior written approval from the franchisor.
It is important to note that the termination of the DRA under these clauses does not automatically terminate any existing franchise rights granted under individual franchise agreements. However, the franchisee will lose all further rights to develop additional Big Blue Swim Schools within the Territory if the DRA is terminated. The FDD specifies that no portion of the Development Fee is refundable upon termination of the DRA, except as provided in Section 8(c) of the agreement.