What does the Goldfish Swim School agreement say about the economic value derived from Trade Secrets?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
For the purposes of this Agreement, a "Trade Secret" is information in any form (including, but not limited to, materials and techniques, technical or non-technical data, formulas, patterns, compilations, programs, devices, methods, techniques, drawings, processes,
financial data, financial plans, product plans, passwords, lists of actual or potential customers or suppliers) related to or used in Goldfish Swim Schools that is not commonly known by or available to the public and that information: (i) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, a Trade Secret is defined as information related to Goldfish Swim Schools that is not publicly known. This information derives economic value, whether actual or potential, from not being generally known or easily ascertainable by others who could profit from its disclosure or use. The information must also be subject to reasonable efforts to maintain its secrecy.
This definition means that the value of Goldfish Swim School's trade secrets lies in their confidentiality and the competitive advantage they provide. If this information were to become public knowledge, its economic value would diminish or disappear entirely. Therefore, Goldfish Swim School takes measures to protect this information.
For a prospective franchisee, this highlights the importance of maintaining the confidentiality of the franchisor's proprietary information. Failure to do so could result in legal and financial repercussions, as well as damage the Goldfish Swim School brand and system.