Does the definition of 'Confidential Information' for Goldfish Swim School include financial data?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- b) For the purposes of this Agreement "Confidential Information" means without limitation, business practices; copyrighted materials; trademarks; patents; applications; trade secrets; trade dress; instructional materials; descriptions of Goldfish's products and services; proposed products and services; computer software and hardware utilized by the System (as herein defined) and all information contained on such computer hardware and software; all data collected from customers and potential customers in connection with the Franchised Swim School; all Customer Personal Data; advertising materials; business plans; swim programs; swim curriculum and training manuals; employee compensation plans; identities of suppliers, customers and prospective customers; all specifications, sources of supply (or prospective sources) and all information pertaining to same (including wholesale pricing structures, contents of sourcing agreements and identity of suppliers), all procedures, systems, techniques and activities employed by Company or Franchisee in the offer and sale of products and/or services at or from the Franchised Swim School; prices and pricing policies; financial data; computer programs and software; floor plans; development schedules; development plans; systems; operations and procedures; the Company's Confidential Brand Standards Manual; Franchisee's final plans for construction, build-out, design, renovation, décor, equipment, signage, furniture, fixtures, and trade dress of the Franchised Swim School; and all other information provided to the Franchisee Parties from Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 FDD, Goldfish Swim School considers 'financial data' as part of its definition of 'Confidential Information.' This means that any financial information related to the Goldfish Swim School franchise is deemed confidential and must be protected by the franchisee. This includes data related to pricing policies.
As a Goldfish Swim School franchisee, you are obligated to maintain the confidentiality of this financial data, which includes prices and pricing policies. This obligation extends to business practices, copyrighted materials, trademarks, trade secrets, customer data, advertising materials, business plans, swim programs, training manuals, employee compensation plans, and supplier identities. The Franchise Agreement emphasizes the importance of this confidentiality, highlighting that access to this information creates a relationship of confidence and trust between the franchisee and Goldfish Swim School.
The broad scope of confidential information reflects the franchisor's interest in protecting its competitive advantage and proprietary systems. Franchisees should be aware that they are responsible for safeguarding a wide array of sensitive business information, not just traditional financial statements. This is a fairly standard practice in franchising, as franchisors need to protect their systems and methods of operation.
Failure to protect this confidential information could have legal and financial repercussions for a Goldfish Swim School franchisee. It is important to understand the full scope of what Goldfish Swim School considers confidential and to implement appropriate safeguards to protect this information.