When does Goldfish Swim School assume liability with respect to the Lease?

According to the 2025 Goldfish Swim School Franchise Disclosure Document, Goldfish Swim School does not have any liability with respect to the lease unless and until they exercise their option to take assignment of the lease as described in the agreement. This means that the franchisee is solely responsible for the lease obligations until Goldfish Swim School decides to take over the lease.

This clause protects Goldfish Swim School from being held responsible for lease-related issues caused by the franchisee before Goldfish Swim School assumes control of the lease. It also gives Goldfish Swim School the option to take over a lease if a franchisee defaults or terminates their agreement, ensuring the location can continue operating as a Goldfish Swim School.

For a prospective franchisee, this means they should be aware that they are fully liable for the lease and its terms until Goldfish Swim School decides to exercise its option to take assignment of the lease. The franchisee should carefully review the lease terms and ensure they can meet all obligations. This also means that Goldfish Swim School has the option, but not the obligation, to assume the lease, which provides flexibility for the franchisor but places the initial and ongoing responsibility on the franchisee.