Why Big Blue Swim School is One of 2021's Best Franchise Bets

Big Blue Swim School*, one of the nation’s fastest-growing swim school franchises, is making a splash with new investors this year.

The Chicago-based brand currently has commitments for 122 schools across 20 states. By the end of 2021, it expects to have a total of 150 commitments.

Big Blue Swim School was founded in 2009 by national champion swimmer Chris DeJong. In 2017 Level 5 Capital Partners took a stake in the brand and began selling franchises. Last year alone, the brand signed 62 new franchises, including a 37-unit deal to expand the brand across the southeast, representing one of the largest financial commitments in the history of the aquatics industry at $87M.  

As the company eyes massive growth, Big Blue Swim Schools looks to be a strong investment for 2021 and beyond. 

A Critical Skill and Valuable Life Moment for Children

Big Blue’s product is not a tangible item; it’s an experience, a big life moment. More than that, it’s also an essential life skill every child needs. Parents do not want to outsource their child’s safety to an app. Even during a recession, families are refusing to skimp on one of life’s major milestones, learning to swim.

“Consumers can shop for products anywhere today. Just look at the growth of online retail during COVID,” said DeJong, who is also the brand’s president. “But parents realize life-skills like swimming can’t be outsourced in the same way. Learning to swim is a key milestone in life, and it can’t be delivered by Amazon.”

Big Blue is leveraging its strong brand, technology, real estate expertise and leadership support, coupled with its best-in-class consumer offerings, to position its franchise partners for long-term success. 

Record Franchise Growth in 2020

Between the pandemic, lockdowns and a recession, U.S. businesses were put to the test last year. But Big Blue saw record growth.

“Despite the pandemic, we continue seeing tremendous demand from parents who want to enroll their kids in swim lessons,” said DeJong. “Regardless of what is going on in the global economy, parents know water safety is an essential life-skill that has to be prioritized.” 

The brand’s leadership expects that momentum to continue. 

“As the pace of COVID-19 vaccinations increases, we believe there is enormous pent-up demand as more families plan their beach and lake vacations, heightening the importance of quality swim lessons,” said Scott Sanders, CEO of Big Blue Swim School. 

Within the first three months of 2021, Big Blue acquired a swim school with two locations in Northern Virginia that are owned by Tom Dolan, a two-time Olympic champion. This acquisition allowed them to immediately expand their presence in the market as Level 5 is building additional stores across Virginia. Recently, the brand also signed leases for new locations in O'Fallon, Missouri; Fairfax, Virginia and Pembroke Pines, Florida. 

This year, Big Blue will celebrate the opening of new pools in Centennial, Colorado, just outside Denver and Chantilly, Virginia. 

Why The Swim School Segment Is Poised for Growth

According to Sanders, parents today are looking for ways to improve the quality of swim education they received at run-down rec centers or facilities not specifically designed for swimming.

That’s because just as the rest of the consumer world has changed — more technology; increased consumer demand for service specialization; easy, customer-friendly experience — so has the world of childhood swim education.

“As a parent, this is the swim education you wished you had. It’s a luxury experience,” said Sanders. “The water is 91 degrees. The space is clean. Parents have a special viewing area where they watch children or catch up on work. And because of the level of training your child receives, you’re going to see your child improve within a few lessons.”

Big Blue is betting even something as simple as a scheduling app can make a huge difference in a busy parent’s life. And so far, that bet is paying off.

“There are a few reasons I like Big Blue, but the app is a huge one,” said Madison Meyers, a mom of two swimmers attending lessons at the brand’s Johns Creek, Georgia location. “It is just so easy to log on and see when the lesson is and see if I need to change their lesson and sign up for makeup, or when I need to miss a lesson.”

The brand’s facilities have also proven a major draw for parents.

“I like how clean the facilities are, particularly this year,” said Meyers “They have really taken a lot of great precautions in regards to COVID. I see them wiping down chairs, and you can’t go into a changing room unless it's been cleaned, which is obviously a big concern nowadays. I like how everyone is protected right from the start.”

A Fragmented Market Creates Opportunities

Because the swim education market is fragmented, with no single leading brand, Big Blue has a big opportunity. 

“There is no one clear leader in the industry and the market for this type of childhood education remains underserved,” said Sanders. “Even in top-tier cities, there is often not a professional swim school with highly trained swim instructors in it. If a specialized swim school does exist, they certainly don’t have an ever-improving and ever-evolving swim curriculum that we do. One that’s repeatable in all the stores.”

Sanders says this puts Big Blue in a position to lead the industry. “We believe there's a significant scale advantage to being the first major school into most of the markets,” he said. “As we get our stores built out, and there are 50, 100, 200 Big Blue Swim Schools around the country, it's going to be difficult for others to compete against us. And by looking at the numbers of new schools we’ve already signed, we’re well-positioned to do just that.”

Why Franchise Partners Are Getting On Board Big Blue

With a solid business plan and strong strategy for success, seasoned franchise investors are taking notice of Big Blue Swim School’s strategy. But there’s more: They share the brand’s commitment to being a positive force in the world. 

For instance, Wendy Skaalerud and her husband Erik, who are opening a franchise in Colorado this Spring, say they liked both the financial opportunity and the people they are working with. 

No strangers to the franchise industry, the pair have worked together for 20 years as business consultants, with a niche helping franchise partners. In 2010, they decided to invest in a franchise themselves, becoming the first OrangeTheory franchise partners in their area. 

After they sold OrangeTheory in 2018, the Skaaleruds immediately began looking for their next franchise, and they knew they wanted to stay within the health and fitness industry. Big Blue Swim School had what they wanted. 

“We wanted something that was going to make a positive impact in our community,” said Skaalerud, a mom of two teenagers. “So a concept that is all about safety for children was really attractive to us.”

But the couple wanted to work with the right partners, who were aligned with their personalities and had a solid game plan. “The Big Blue people really are wonderful, and they match our philosophy and our perspective on integrity,” she said. “The business model is solid, too, creating a sense of confidence and comfort. It was really important to sign on with a group with deep enough pockets to maintain this kind of growth, and at the same time build a support infrastructure for franchise partners. They’ve done a phenomenal job. ”

Why Big Blue's Leadership Team is More Excited Than Ever 

As the leadership team looks toward the rest of the year, Scott Thompson, Big Blue’s chief development officer, said their excitement is building.

“We’re well-positioned for this year and beyond,” said Thompson. “We did not take on debt, we did not over-leverage ourselves; we were patient on where we put the schools, we didn't force franchise partners to take leases that weren't necessarily the best for the brand,” he said.

That means in addition to big pent-up demand from investors, the brand is also benefiting from a rare spike in available prime real estate locations. 

“As COVID-19 gets under control we're seeing sites that we've identified suddenly open up,” said Thompson. “And landlords want us to fill them.”

Thompson says Big Blue’s development team relies on a data-driven approach for site selection. It analyzes demographics, traffic patterns and other metrics to strategically choose locations that will appeal to busy parents. 

Additionally, the real estate team is leveraging the Amazon Effect to its advantage. As traditional brick-and-mortar retailers competing against online competition and changing consumer preferences move their operations online, a glut of empty retail space has opened. 

Big Blue Swim Schools are particularly desirable as tenants because the core product is an experience, not a physical product that can be replaced by an online competitor. Because the swims schools are willing to put considerable investment in their properties, commercial landlords feel they’ve found a long-term, stable partner. 

Ultimately, in times of changing consumer preferences and economic uncertainty, Big Blue Swim School offers a strong opportunity for investors to build a long-term, multi-generational business with a community-building and child-focused mission. 

The Big Blue Swim School Franchise Investment 

According to the brand’s development team, multi-unit franchise opportunities are available for qualified candidates, and veterans can receive a 10% discount on the $80,000 franchise fee. The total investment necessary to begin operation of a new Big Blue Swim School is $2,329,223 to $3,636,998 (refer to item 7 in FDD).

To learn more or inquire about Big Blue Swim School, visit https://www.bigblueswimschool.com/franchising/.

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