How does Goldfish Swim School define the 'designated area' within the Franchise Agreement?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement licenses you to operate one Franchised Swim School at a specific site within the designated area. Territorial rights are granted under the Franchise Agreement include a "designated area," which is described below. The designated area that you receive will be described and depicted in a map attached to or included in the Franchise Agreement. You will operate one swim school in your designated area and must receive our permission before relocating. We determine the boundaries of the area based on a variety of factors, including general population, population size of children under the age of 12 years, proximity to competitors, proximity to other franchisees and natural, physical or political boundaries. As long as you are not in default under the Franchise Agreement, we will not establish other franchised or company-owned swim schools using the System with a physical location in your designated area. You receive no minimum territory. Continuation of your territorial exclusivity is not dependent upon achieving certain sales volume, market penetration, or other contingency. The territory may only be altered at the renewal of your franchise agreement. You will receive an exclusive territory.
Source: Item 12 — TERRITORY (FDD pages 42–44)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, the designated area is a specific geographic area where the franchisee is authorized to operate their swim school. This area is defined by boundary streets, highways, or other recognizable demarcations and is depicted on a map or written description attached to the Area Development Agreement. The boundaries of the designated area are determined by Goldfish Swim School based on factors such as general population, the population size of children under 12, proximity to competitors and other franchisees, and natural, physical, or political boundaries.
Goldfish Swim School grants franchisees an exclusive territory within this designated area, meaning that as long as the franchisee is not in default under the Franchise Agreement, Goldfish Swim School will not establish other franchised or company-owned swim schools using the same system within that physical location. However, franchisees receive no minimum territory, and the continuation of territorial exclusivity is not dependent on achieving certain sales volumes or market penetration. The territory can only be altered upon renewal of the franchise agreement.
Exhibit 10 to the Franchise Agreement, also known as the Location Exhibit, includes the street address or a detailed description of the approved location, as well as a map of the designated area or area of primary responsibility. If the approved location is not available when the agreement is executed, the address will be inserted into Exhibit 10 once it is determined, and Goldfish Swim School will then determine and insert the description of the area of primary responsibility into the same exhibit. The franchisee is expected to operate the Goldfish Swim School within this designated area of primary responsibility, subject to Goldfish Swim School's rights as outlined in the agreement.