How is an 'Approved Location' defined in the Goldfish Swim School Franchise Agreement?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
1. DEFINITIONS
Whenever used in this Agreement, the following words and terms have the following meanings:
- "Affiliate" means any business entity that controls, is controlled by, or is under common control with Franchisor;
- "Agreement" means this agreement entitled "Goldfish Swim School Franchising LLC Franchise Agreement" and all instruments supplemental hereto or in amendment or confirmation hereof;
- "Approved Location" means the site for the operation of the Franchised Swim School selected by Franchisee and accepted in writing by Franchisor;
- "Approved Supplier(s)" has the meaning given to such term in Section 13.1;
- "Area of Primary Responsibility" has the meaning given to such term in Section 2.5;
- "Brand Fund" has the meaning given to such term in Section 11.3;
- "Brand Fund Contribution" has the meaning given to such term in Section 11.3;
- "Competitive Business" means any business that offers (or grants franchises or licenses to others to operate a business that offers) swim instruction to children the same as or similar to those provided by Goldfish Swim Schools or in which Trade Secrets or other Confidential Information could be used to the disadvantage of Franchisor, any Affiliate or its other franchisees; provided, however, that the term "Competitive Business" shall not apply to (a) any business operated by Franchisee under a Franchise Agreement with Franchisor, or (b) any business operated by a publicly-held entity in which Franchisee owns less than a five percent (5%) legal or beneficial interest;
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, an 'Approved Location' is defined as the site selected by the franchisee for operating the Goldfish Swim School, which has been accepted in writing by Goldfish Swim School. The franchisee is responsible for identifying this location, but Goldfish Swim School retains the right to either accept or reject the proposed site.
Goldfish Swim School's decision to accept or reject a location is based on factors they deem appropriate. These factors include the condition of the premises, the demographics of the surrounding area (including the adolescent population size), proximity to other Goldfish Swim Schools or competitive businesses, lease requirements, traffic patterns, visibility, vehicular and pedestrian access, proximity to major roads, available parking, and overall suitability. Even if a proposed location falls within the franchisee's designated territory, Goldfish Swim School is not obligated to approve it.
If a franchisee fails to secure an approved location within 180 days after the effective date of the agreement, Goldfish Swim School has the right to terminate the agreement. In such a case, Goldfish Swim School will return 25% of the franchise fee to the franchisee, contingent upon receiving a general release of claims. Furthermore, the franchisee is restricted from using the approved location for any purpose other than operating a Goldfish Swim School, unless written approval is granted by Goldfish Swim School.