What are the consequences of not adhering to the standards and specifications for approved supplies for a Goldfish Swim School franchise, as described in Item 8, and how might this affect the franchisee's obligations as listed in Item 9?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase all of your supplies ("Approved Supplies") including without limitation your furniture, fixtures, equipment, including computer equipment, inventory, and signage under specifications in the Goldfish Swim School Confidential Brand Standards Manual ("Confidential Brand Standards Manual") and through suppliers approved by us ("Approved Suppliers"). You will be required to use Approved Suppliers to perform certain services on your behalf in connection with your Franchised Swim School. We communicate our standards and specifications to you when we evaluate your proposed location for the franchised swim school during training, before you conduct your initial advertising expense, during on-site opening assistance, during periodic visits to your franchise location and through the Confidential Brand Standards Manual (including periodic bulletins). We will periodically issue new standards and specifications (if any) through written notices. We have created standards and specifications for the development of your franchised swim school. We have required vendors and suppliers as identified in the Confidential Brand Standards Manual and we reserve the right to designate required additional vendors or suppliers, or revoke the approval of suppliers as we determine in our discretion from time to time in the future, and will provide you notice through the Confidential Brand Standards Manual.
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, franchisees must adhere to the standards and specifications outlined in the Confidential Brand Standards Manual when purchasing supplies. These supplies, referred to as "Approved Supplies," include furniture, fixtures, computer equipment, inventory, and signage, and must be purchased from suppliers approved by Goldfish Swim School. The franchisor communicates these standards during location evaluation, training, initial advertising, on-site assistance, and periodic visits, as well as through the manual and written notices. Goldfish Swim School can periodically issue new standards, designate additional vendors, or revoke supplier approvals.
Failure to comply with these standards could lead to several consequences. The franchise agreement stipulates that franchisees must strictly comply with all requirements, specifications, standards, operating procedures, and rules set forth in the agreement, the Confidential Brand Standards Manual, and other communications from the franchisor. Non-compliance can result in the franchisor intervening in customer complaints and potentially terminating the franchise agreement if the franchisee does not maintain high standards of quality and service.
Furthermore, Goldfish Swim School has the right to change or modify the System, including the adoption of new equipment, inventory, supplies, or marketing techniques. Franchisees are obligated to accept and use these changes, making necessary expenditures at their own cost. This includes improvements or modifications required by law or regulation. The franchisor may also enter into system-wide supply contracts, requiring franchisees in a specific geographic area to purchase from designated suppliers, impacting the franchisee's choice of vendors and potentially their costs. Franchisees must also abide by any uniform or dress code requirements stated in the Confidential Brand Standards Manual, purchasing uniforms from approved suppliers or those meeting the franchisor's specifications.