Besides activities expressly forbidden, what other activities can Goldfish Swim School engage in?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
2.7.1 establish, own or operate, and license others to establish, own or operate, Goldfish Swim Schools with a physical location outside of the Area of Primary Responsibility as Franchisor deems appropriate;
2.7.2 establish, own or operate, and license others to establish, own or operate other non-swim lesson based businesses under other systems using the same or other trademarks at locations inside and outside of the Area of Primary Responsibility;
2.7.3 purchase or otherwise acquire the assets or controlling ownership of one (1) or more businesses identical or similar to the Franchised Swim School (and/or acquire franchise, license and/or similar agreements for such businesses), some or all of which may be located anywhere, including within the Area of Primary Responsibility. If Franchisor purchases or acquires franchises or licenses, Franchisor may, in its sole discretion, act as franchisor or licensor with respect to such franchisees or licensees wherever located, pursuant to the individual franchise or license agreement(s) between Franchisor and such franchisee(s) or licensee(s). If Franchisor purchases or acquires such businesses within the Area of Primary Responsibility which are not franchised or licensed, Franchisor may, in its sole discretion:
- 2.7.3.1 offer to sell any such businesses to Franchisee or to any third party at the business's fair market value to be operated as a Goldfish Swim School; or
- 2.7.3.2 offer Franchisee the opportunity to operate such business(s) in partnership with Franchisor (or an Affiliate) under the business(s) existing trade name or a different trade name.
2.7.4 be acquired (regardless of the form of transaction) by any business, even if the other business operates, franchises and/or licenses Competitive Businesses within the Area of Primary Responsibility;
2.7.5 provide the services and sell the products authorized for Goldfish Swim Schools using the Marks or other trademarks, service marks and commercial symbols through an alternate channel of distribution other than a Franchised Swim School situated within the Area of Primary Responsibility including without limitation, such alternative channels of distribution as the internet/worldwide web; any other form of electronic commerce; "800" or similar toll-free telephone numbers; retail outlets or stores; mail order; catalogs; television sales (including "infomercials"); or any other channel of distribution whatsoever except for a Franchised Swim School, on such terms and conditions as Franchisor deems appropriate; and
- 2.7.6 engage in any activities not expressly forbidden by this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, Goldfish Swim School can engage in any activities not expressly forbidden by the Franchise Agreement. This means that if a specific activity isn't explicitly prohibited in the agreement, Goldfish Swim School retains the right to pursue it.
Goldfish Swim School can establish, own, or operate Goldfish Swim Schools outside of a franchisee's primary territory as they deem appropriate. They can also establish, own, or operate non-swim lesson based businesses under different systems and trademarks, both inside and outside the franchisee's area. This gives Goldfish Swim School the flexibility to diversify its business ventures beyond the core swim lesson model and expand its reach geographically.
Furthermore, Goldfish Swim School has the option to purchase or acquire businesses similar to the franchised swim school, even those located within a franchisee's primary area. They can then choose to either sell these acquired businesses to the franchisee or a third party, or operate them in partnership with the franchisee. Goldfish Swim School can also be acquired by another business, even if that business operates competitive businesses within the franchisee's primary territory. This clause protects the franchisor in the event of a merger or acquisition.
Goldfish Swim School can also provide services and sell products authorized for Goldfish Swim Schools through alternative channels of distribution other than franchised swim schools, such as the internet, retail outlets, or mail order. This allows Goldfish Swim School to tap into different markets and revenue streams without being limited to the traditional brick-and-mortar franchise model. These activities provide Goldfish Swim School with significant latitude in how they operate and expand their business, as long as they don't violate any explicit terms of the Franchise Agreement.