Why Landlords Love Big Blue Swim School

Since its founding in 2009, swim school franchise Big Blue Swim School has signed agreements for 131 new units in markets across the country, making it one of the fastest-growing players in the fragmented $3 billion per year swim school industry. This is partly due to the fact that landlords love Big Blue Swim School’s stable investment, recession-resistant service offering, and strong consumer demand.

As prime real estate opens up due to the pandemic and the rise of e-commerce, Big Blue’s mutually beneficial relationship with landlords is helping franchise partners secure exceptional locations across the country.

The Role of Real Estate in Big Blue Swim School

Real estate plays an important role in Big Blue’s franchising model. While competitors in the swim school space typically connect new franchise owners to local real estate brokers who source secondary or industrial-style locations, Big Blue has a sizable team dedicated to real estate, site selection, and construction. The team uses market knowledge and data-driven real estate assessment methodology to identify prime real estate in trade areas across the country fitting the brand’s member profile.

Brookfield Properties, a global real estate services company based in New York, recently partnered with Big Blue Swim School as the landlord for an upcoming store in Pembroke Pines, Florida.

“We are always looking to add destination brands to our shopping centers,” said Michael Cohen, director of leasing at Brookfield Properties. “We were working with Nate Minnis at Level 5 Capital Partners, and he brought to our attention that Big Blue Swim School was looking to grow in certain markets. The more we looked into the franchise opportunity, the brand and the leadership team, the more we saw the potential benefits Big Blue could bring within our investment model.”

From there, the Brookfield Properties and Big Blue teams looked to identify top sites across the country. An available site in a retail shopping center in Pembroke Pines was at the top of the list.

How Big Blue Swim School Benefits Landlords

As the growing online marketplace makes it increasingly difficult for commercial retailers to bring foot traffic to their facilities, Big Blue offers a particularly attractive solution for landlords, as the model is essentially unaffected by online shopping trends. That value proposition helps Big Blue negotiate and secure premier locations so franchise partners are well-positioned for high traffic.

“Our goal is to continue adding entertainment and destination locations to our shopping center, and Big Blue perfectly fits the bill,” said Cohen. “The mall is a very family-oriented shopping center, with several children’s retailers, so our focus is mainly on driving foot traffic. Big Blue offers an incredible opportunity to add amenities that will continue to bring families back to the property on a weekly or monthly basis and likely increase business across the other stores in the center.”

These factors explain why more and more landlords like Cohen are willing to support the buildout of a swimming pool, which creates an easier process for franchise partners.

“The demand has evolved over time,” said Scott Sanders, CEO of Big Blue. “At the very beginning, some landlords were reluctant about building pools because it can be relatively expensive. However, as traditional brick-and-mortar retail has come under pressure, the response has changed considerably. The concept of a high-quality, beautiful, and clean space where children come to learn to swim has resonated very well with landlords.”

Big Blue Swim School’s Recession-Resistant Model

The move to e-commerce, which has accelerated over recent years and is now exacerbated by the COVID-19 pandemic, has forced several big-box retailers into systemwide closures. Big Blue offers landlords an attractive and recession-resistant tenant that can fill those vacancies.

“Landlords have learned tenants selling hard goods or food are higher-risk, and could easily lead to an unexpected vacancy,” said Sanders. “Big Blue is unique from a landlord perspective. Even during the COVID-19 pandemic, parents are still engaged with us and eager to get back as soon as possible. Parents can choose to skip a discretionary meal, or postpone buying a new piece of furniture, but they are very reluctant to walk away from swim lessons, because they teach a vital life skill.”

In addition to benefiting the landlord, this has also enabled Big Blue to source opportunities for space that did not previously exist and has created the ability to grow the brand more quickly across a wider variety of cities and locations.

Overall, Cohen says working with Big Blue has been an ideal experience. “The negotiation process was straightforward, and the team operated with high integrity,” he said. “Negotiations can be drawn out and cumbersome, but Big Blue kept the process very professional and smooth. This is our first deal with a swim school, and we are proud to partner with Big Blue in bringing something unique and fresh to the table while promoting health and safety for children in the communities we service.”

Multi-unit franchise opportunities are available for qualified candidates looking for their next big opportunity, and veterans can receive a 10 percent discount on the $80,000 franchise fee. The total investment necessary to begin operation of a new Big Blue Swim School is $2,334,223 to $3,641,998 (refer to item 7 in FDD) To learn more or inquire about Big Blue Swim School, visit https://www.bigblueswimschool.com/franchising/.