What actions related to the transfer of control or assignment of the Goldfish Swim School franchise are prohibited?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
The rights and duties of Franchisee as set forth in this Agreement, and the Franchise herein granted, are personal to Franchisee (or its owners), and Franchisor has entered into this Agreement in reliance upon Franchisee's personal or collective skill and financial ability. Accordingly, neither Franchisee nor any holder of a legal or beneficial interest in Franchisee may sell, assign, convey, give away, pledge, mortgage, sublicense or otherwise transfer, whether by operation of law or otherwise, any interest in this Agreement, the Franchise granted hereby, the Approved Location used in operating the Franchised Swim School, its assets or any part or all of the ownership interest in Franchisee without the prior written approval of Franchisor. Any purported transfer without such approval shall be null and void and shall constitute a material breach of this Agreement. If Franchisee is in compliance with this Agreement, Franchisor's consent to such transfer shall be conditioned upon the satisfaction of the following requirements:
18.2.1 Franchisee has complied with the requirements set forth in Section 19;
18.2.2 all obligations owed to Franchisor, and all other outstanding obligations relating to the Franchised Swim School, are fully paid and satisfied;
18.2.3 Franchisee (and any transferring owners, if Franchisee is a business entity) has executed a general release, in a form the same as or similar to the General Release attached as Exhibit 1, of any and all claims against Franchisor, including its officers, directors, shareholders, managers, members, partners, owners, employees and agents (in their corporate and individual capacities), including, without limitation, claims arising under federal, state or local laws, rules or ordinances, and any other matters incident to the termination of this Agreement or to the transfer of Franchisee's interest herein or to the transfer of Franchisee's ownership of all or any part of the Franchise; provided, however, that if a general release is prohibited, Franchisee shall give the maximum release allowed by law;
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, a franchisee is restricted from transferring any interest in the Franchise Agreement without prior written approval from Goldfish Swim School. This includes selling, assigning, conveying, giving away, pledging, mortgaging, sublicensing, or otherwise transferring any interest in the agreement. This restriction applies whether the transfer is done by the franchisee, any holder of legal or beneficial interest, or through operation of law.
Specifically, the franchise agreement, the franchise itself, the approved location, the assets of the swim school, or any part of the ownership interest in the franchisee cannot be transferred without Goldfish Swim School's consent. Any transfer attempted without this approval is considered null and void, constituting a material breach of the agreement.
If a franchisee is in compliance with the agreement and seeks to transfer the franchise, Goldfish Swim School's consent is conditional. The franchisee must meet specific requirements, including compliance with Section 19 of the agreement, full payment of all obligations owed to Goldfish Swim School, and execution of a general release of claims against Goldfish Swim School. This ensures that Goldfish Swim School maintains control over who operates a Goldfish Swim School franchise and that the brand's standards and reputation are upheld.