What costs related to injunctive relief is a terminated Goldfish Swim School franchisee responsible for?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.1.5 pay to Franchisor all costs and expenses, including reasonable attorneys' fees, incurred by Franchisor subsequent to the termination or expiration of the Franchise in obtaining injunctive or other relief for the enforcement of any provisions of 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, a franchisee is responsible for specific costs if Goldfish Swim School seeks injunctive relief to enforce the franchise agreement after termination. Injunctive relief is a court order that requires a party to do or cease doing a specific action.
Specifically, the franchisee must pay all costs and expenses, including reasonable attorneys' fees, that Goldfish Swim School incurs to obtain injunctive or other relief to enforce any provisions of the Franchise Agreement after the franchise has been terminated or expired. This means that if a franchisee violates the terms of the agreement after termination, and Goldfish Swim School has to go to court to stop them, the franchisee will be responsible for covering Goldfish Swim School's legal bills.
This provision highlights the importance of adhering to the terms of the franchise agreement, even after termination. Failure to do so can result in significant financial liabilities for the former franchisee. It is common in franchising for the franchisee to be responsible for the franchisor's legal costs in such enforcement actions, as it aims to deter breaches of contract and protect the franchisor's brand and system standards.