Does the Goldfish Swim School agreement require the Developer to conduct an independent investigation of the business?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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You further acknowledge that you have conducted an independent investigation of the business franchised pursuant to this Agreement and recognize the business venture contemplated by this Agreement involves the normal business risks associated with beginning a new business.
As part of such investigation, you acknowledge that you had ample opportunity to consult with advisors of your own choosing about the potential benefits and risks of entering into this agreement.
You acknowledge that you are entering into this Agreement based upon your own investigation and not as a result of any representations about us made by shareholders, members, officers, directors, employees, agents, representatives, independent contractors, or franchisees which are contrary to the terms set forth in this Agreement or any franchise disclosure document required or permitted to be given to Franchise Owner pursuant to applicable law.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
Yes, according to the 2025 Goldfish Swim School Franchise Disclosure Document, the agreement requires that the Developer conduct an independent investigation of the business. The agreement states that the Developer acknowledges conducting this investigation and understands the business venture involves normal business risks.
Specifically, the agreement emphasizes that the Developer should recognize the risks associated with starting a new business. It also confirms that the Developer had the opportunity to consult with advisors regarding the potential benefits and risks before entering the agreement. This suggests that Goldfish Swim School encourages prospective developers to seek professional advice to fully understand the implications of the franchise agreement.
Furthermore, the agreement stipulates that the Developer is entering into the agreement based on their own investigation and not due to any representations made by the franchisor's shareholders, members, officers, directors, employees, agents, representatives, independent contractors, or franchisees that contradict the terms outlined in the agreement or any franchise disclosure document. This clause aims to protect Goldfish Swim School from liability based on external representations not included in official documents, reinforcing the importance of the franchisee's independent due diligence.