Are utility deposits for a Big Blue Swim School franchise always refundable?

According to Big Blue Swim School's 2025 Franchise Disclosure Document, whether utility deposits are refundable depends on the policies of the local utility companies. Item 7 includes a line item for utility upgrades and tap fees, with an estimated cost ranging from $0 to $100,000. Footnote 9 clarifies that new customers of local utilities typically must pay deposits for services like electric, telephone, gas, and water. However, the amount and refundability of these deposits are determined by the local utilities themselves.

This means a prospective Big Blue Swim School franchisee should not assume that utility deposits will be returned. The FDD also notes that, except for security and utility deposits paid to landlords and utility companies (based on their business practices), no expenditure in the table is refundable. Franchisees need to investigate the specific policies of utility providers in their chosen location to understand the potential costs and refund policies for these deposits. Additionally, franchisees might be required to pay a fee to access or upgrade access to the municipality or county's water and/or sewer system, and should investigate whether a water tap fee assessment is required for their location.

Given the wide range in estimated costs for utility upgrades and tap fees ($0 to $100,000), it is crucial for prospective franchisees to conduct thorough due diligence on these expenses. Understanding the specific requirements and policies of local utility companies can significantly impact the initial investment and ongoing operational costs for a Big Blue Swim School franchise. This also highlights the importance of carefully selecting a location, as the costs associated with utility connections and deposits can vary substantially depending on the municipality and available infrastructure.