In the context of the Goldfish Swim School Area Development Agreement, what is the significance of the 'Commencement Date'?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| This | Area | Development | Agreement | ("Agreement") | is | entered | into | as | of | the |
|---|---|---|---|---|---|---|---|---|---|---|
| day of, 20 ("Commencement Date"), by and between GOLDFISH | ||||||||||
| SWIM SCHOOL FRANCHISING, LLC | ("Franchisor," "us" or "we"), a Michigan limited | |||||||||
| liability company, with its principal place of business located at 2701 Industrial Row Drive, | ||||||||||
| Troy, Michigan 48084, and ("Developer") with its principal place | ||||||||||
| of business located at and its Principals (as defined herein | ||||||||||
| below). |
- E.
Unless sooner terminated as provided herein, this Agreement shall commence on the Commencement Date and continue until the expiration of the Term.
This Agreement shall automatically expire on the date specified in Section 3.A. as the opening date for the last Swim school to be opened.
- F.
Upon any termination or expiration of this Agreement, (i) Developer shall not develop additional Swim schools in the Territory pursuant to this Agreement; provided, however, that Developer may complete development of and/or operate Swim schools under then-existing Franchise Agreements signed by us, subject to the Terms and conditions thereof; and (ii) we may develop, or authorize others to develop, Swim schools in the Territory.
- G.
The rights granted under this Agreement are limited to the right to develop and operate Swim schools located in the Territory, and do not include (i) any right to sell products or services identified by the Trademarks at any Location or through any other channel or method of distribution, including without limitation, the internet, world wide web or other existing or future form of electronic commerce, other than at Swim schools within the Territory; (ii) any right to sell products and services identified by the Trademarks to any person or entity for resale or further distribution; or (iii) any right to exclude, control or impose conditions on our development or operation of franchised, company or affiliate-owned Swim schools at any time or at any Location outside the Territory.
Term - the duration of this Agreement commencing on the Commencement Date and continuing until the date specified on the Development Schedule for the last Franchised swim school to be opened.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, the Commencement Date marks the beginning of the Area Development Agreement's term. The agreement starts on the Commencement Date and continues until the date specified in the Development Schedule for the opening of the last franchised swim school. This means the agreement's duration is directly tied to the developer's schedule for opening new Goldfish Swim School locations within their designated territory.
The Area Development Agreement outlines the developer's rights and obligations during this term, including the right to develop and operate Goldfish Swim School locations within the specified territory. However, these rights are limited and do not include the right to sell products or services outside of the swim schools or to control the franchisor's development of other locations outside the territory. Upon termination or expiration of the agreement, the developer loses the right to develop additional swim schools, although they may continue to operate those already under existing franchise agreements.
In essence, the Commencement Date sets the clock ticking for the developer to meet the obligations outlined in the Development Schedule. Failing to adhere to this schedule can lead to the termination of the agreement and the loss of rights to develop further Goldfish Swim School locations. Therefore, the Commencement Date is a critical milestone that triggers the developer's responsibilities and the timeline for fulfilling their development commitments.