What businesses are excluded from the definition of 'Competitive Business' in the Goldfish Swim School Franchise Agreement?

According to Goldfish Swim School's 2025 Franchise Disclosure Document, a 'Competitive Business' is defined as any business offering swim instruction to children similar to that of Goldfish Swim School, or any business where the franchise's trade secrets or confidential information could be used to the disadvantage of the franchisor, its affiliates, or other franchisees. However, there are specific exceptions to this definition.

Specifically, the term 'Competitive Business' does not apply to two types of businesses. First, any business operated by the franchisee under a Franchise Agreement with Goldfish Swim School itself is excluded. This means a franchisee can operate multiple Goldfish Swim School locations without violating the non-compete clause. Second, the definition excludes any business operated by a publicly-held entity in which the franchisee owns less than a five percent (5%) legal or beneficial interest. This allows franchisees to invest in publicly traded companies that may have some competitive overlap with Goldfish Swim School, provided their ownership stake remains below the 5% threshold.

This definition and its exceptions are important for prospective franchisees to understand, as they outline the scope of activities that are considered competitive and therefore restricted under the Franchise Agreement. It allows franchisees to operate other Goldfish Swim School locations or invest in publicly held companies, but otherwise restricts involvement in businesses offering similar swim instruction or that could utilize Goldfish Swim School's confidential information.