Big Blue Swim School

112 Krog Street NE, Suite D-135

[email protected]

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Big Blue Swim School Franchising, LLC is an Illinois limited liability company. Their principal business address is 4207 N. Western Avenue, Chicago, Illinois 60618. They have offered franchises and development rights for BIG BLUE Swim Schools since September 2018.

We grant franchises to develop and operate a swim school concept identified by the Marks (defined below) that currently provides, following a proprietary curriculum, swim lessons and skills in approximately 90-degree water to children ranging in age from newborn to 10 years old (the “Swim School Concept”). We call these swim schools “BIG BLUE Swim Schools.” In this disclosure document, we refer to your BIG BLUE Swim School as the “School.” BIG BLUE Swim Schools operate under trademarks, service marks, and other commercial symbols we periodically designate, including “BIG BLUE SWIM SCHOOL®” (the “Marks”), and the mandatory and suggested specifications, standards, operating procedures, and rules we periodically specify for BIG BLUE Swim Schools (“Brand Standards”). Your School must offer the services and products we specify. The definition of “Swim School Concept” expressly excludes a swim-related business, whether or not operated under the Marks, whose core activities are anything other than providing swim lessons and skills in approximately 90-degree water to children ranging in age from newborn to 10 years old, including, for example, competitive swimming in lower-temperature water, coaching and video analysis, laps, and wave pools. We have unrestricted rights over anything that is not encompassed within the definition of “Swim School Concept.” We also may grant multi-unit development rights to qualified franchisees, which then may develop a specific number of BIG BLUE Swim Schools within a defined temtory according to a pre-determined development schedule. Those franchisees may open and operate their BIG BLUE Swim Schools directly or through “Controlled Affiliates.” Our Development Rights Rider to Franchise Agreement is Exhibit C. Franchisees signing our Development Rights Rider must sign our then-current form of Franchise Agreement for each additional BIG BLUE Swim School they develop under that Development Rights Rider. While that form may differ substantially and materially year to year from the first Franchise Agreement they sign for their first BIG BLUE Swim School to be developed (our current version of Franchise Agreement is disclosed in this disclosure document), we will reduce the initial franchise fee for the 3''‘* and each successive BIG BEUE Swim School you commit to develop under the Development Rights Rider. We also commit to charge during the initial franchise term for each BIG BLUE Swim School you develop under the Development Rights Rider the same Royalty, Brand Fund contribution. Software License Fee, Local Marketing Spending Requirement, and minimum required Market Introduction Program expense we reserve the right to charge you under the first Franchise Agreement you sign. However, if you and your Controlled Affiliates are not, when the next franchise agreement is signed, in full compliance with the Development Rights Rider and all other franchise agreements then in effect with us for BIG BLUE Swim Schools, then we reserve the right to charge, without modification, the Royalty, Brand Fund contribution. Software License Fee, Local Marketing Spending Requirement, and minimum required Market Introduction Program expense specified under our then-current form of franchise agreement. We have offered franchises and development rights for BIG BLUE Swim Schools since September 2018. We have no other business activities and have not offered franchises in other lines of business. We have never operated a BIG BLUE Swim School (although one of our affiliates has owned and operated BIG BLUE Swim Schools since April 2012). Your School will offer services and products to the general public throughout the year. The market for swim schools is developing. You will face competition from other swim schools. Including swim schools associated with national or regional franchise chains, local school districts, park districts, country clubs, private instructors, summer camps, YMCAs, and other local organizations that provide swimming lessons. Some competitors currently are larger and have better name recognition than “BIG BLUE Swim School.” Other BIG BLUE Swim Schools located outside your area of protection, but which market and advertise in your market, also might compete with your School. Most states and local jurisdictions have enacted laws, rules, and regulations that might particularly impact the operation of swim schools, including those: (a) requiring a CPR, lifeguard, and first-aid or other certification; (b) establishing general standards, specifications, and requirements for constructing, designing, and maintaining the business premises, including pool construction requirements; (c) regulating matters affecting customer health, safety, and welfare, such as pool-water-testing requirements, ongoing water treatment, and maintenance of water quality, teacher/student ratios, and background checks for employees who will be in contact with children; (d) regulating accommodations for disabled persons, including commercial pool-lift regulations; and (e) requiring you to meet air quality standards, including caps on emissions from indoor pools. You must comply with these laws and with laws applying generally to all businesses. You should investigate these laws and regulations when evaluating your franchise acquisition.