factual

What actions are Goldfish Swim School franchisees prohibited from taking with Customer Data?

Goldfish_Swim_School Franchise · 2025 FDD

Answer from 2025 FDD Document

  • a) During the term of the Franchise Agreement and for a period of two (2) years after the expiration or termination of the Franchise Agreement, regardless of the cause of expiration or termination, Franchisee shall not, directly or indirectly, for itself or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, divert or attempt to divert any business or customer of Franchisee to any Competitive Business, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Company's service mark "Goldfish Swim School®" and such other trade names, trademarks, service marks, trade dress, designs, graphics, logos, emblems, insignia, fascia, slogans, drawings and other commercial symbols as Company designates to be used in connection with Goldfish Swim Schools or Company's uniform standards, methods, procedures and specifications for the establishment and operation of Goldfish Swim Schools.

  • b) For the purposes of this Agreement "Confidential Information" means without limitation, business practices; copyrighted materials; trademarks; patents; applications; trade secrets; trade dress; instructional materials; descriptions of Goldfish's products and services; proposed products and services; computer software and hardware utilized by the System (as herein defined) and all information contained on such computer hardware and software; all data collected from customers and potential customers in connection with the Franchised Swim School; all Customer Personal Data; advertising materials; business plans; swim programs; swim curriculum and training manuals; employee compensation plans; identities of suppliers, customers and prospective customers; all specifications, sources of supply (or prospective sources) and all information pertaining to same (including wholesale pricing structures, contents of sourcing agreements and identity of suppliers), all procedures, systems, techniques and activities employed by Company or Franchisee in the offer and sale of products and/or services at or from the Franchised Swim School; prices and pricing policies; financial data; computer programs and software; floor plans; development schedules; development plans; systems; operations and procedures; the Company's Confidential Brand Standards Manual; Franchisee's final plans for construction, build-out, design, renovation, décor, equipment, signage, furniture, fixtures, and trade dress of the Franchised Swim School; and all other information provided to the Franchisee Parties from Franchisor.

  • c) For purposes of this Agreement, "Customer Personal Data" means data that may be reasonably linked or linkable to natural persons to whom the Franchised Swim School provides goods or services or who are associated with a business entity to which the Franchised Swim School provides goods or services, including not limited to such natural person's name, birthdate, contact information, payment card information, transaction history, and other personal and other information as may be further set forth and defined in the Company's Confidential Brand Standards Manual.

Source: Item 23 — RECEIPTS (FDD pages 77–389)

What This Means (2025 FDD)

According to the 2025 Goldfish Swim School FDD, franchisees face several restrictions regarding customer data, classified as "Confidential Information" and "Customer Personal Data." These restrictions are in place both during the term of the Franchise Agreement and for a specified period after termination. Franchisees are prohibited from using customer data to engage in competitive business activities or to solicit customers away from the Goldfish Swim School system.

Specifically, franchisees cannot directly or indirectly divert or attempt to divert any business or customer of the franchise to a competitive business. This includes any action that could be injurious or prejudicial to the goodwill associated with the Goldfish Swim School brand. After the franchise agreement terminates, the franchisee must cease using all confidential information, including customer data, and return all materials containing such information to the franchisor.

These restrictions are designed to protect the Goldfish Swim School's customer relationships, brand reputation, and competitive advantage. Franchisees should be aware that violating these non-compete and confidentiality clauses could result in legal action and financial penalties. The definition of "Customer Personal Data" is broad, encompassing any data that can be linked to customers, including names, contact information, and transaction history, so franchisees must handle this information with utmost care and in compliance with the franchisor's standards.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.