What must the Goldfish Swim School Developer agree to regarding the new area development agreement?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Developer shall develop, open, commence operation of and continuously operate pursuant to the respective Franchise Agreements the minimum number of Swim schools in the Territory, pursuant to the Development Schedule as described in Attachment 1 to the Area Development Agreement.
- B. Each Swim school and the cumulative number of Swim schools indicated in the Development Schedule shall be OPEN AND OPERATING by the date(s) specified therein. Developer shall select a Location that we approve consistent with the applicable Franchise Agreement so that each and every Swim school is OPEN AND OPERATING pursuant to the Development Schedule. Our consent to any Location or execution of a Franchise Agreement shall not waive, extend or modify the Development Schedule. Unless otherwise agreed and approved by us, the Swim schools shall refer to Goldfish Swim School® Swim schools operating pursuant to the System.
If the Developer shall close any Location, whether voluntarily or involuntarily, and whether as a result of the loss of possession of the premises, by fire or other casualty, or otherwise, the Developer shall locate and secure a suitable alternative Location or premises approved by us within six (6) months from the loss of possession of the original site, and shall be open for business at the new Location not more than twelve (12) months following the closing of the prior Location, while at the same time maintaining the Development Schedule. If a suitable alternative Location is not secured and opened as hereinabove described or if Developer does not comply with the Development Schedule, this Agreement and the right of the Developer to develop additional Locations under this Agreement shall terminate. The opening of a Location in replacement of another Location under this paragraph shall not satisfy the Developer's obligation to open Locations under this Section 3 of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, a developer entering into an area development agreement must adhere to several key obligations. The developer is responsible for developing, opening, operating, and continuously running the minimum number of Goldfish Swim School locations within their designated territory, following the development schedule outlined in the Area Development Agreement. Each swim school must be open and operating by the dates specified in the schedule.
The developer is responsible for selecting locations that Goldfish Swim School approves, ensuring each location meets the operational standards and timelines of the development schedule. Securing Goldfish Swim School's consent for a location or executing a Franchise Agreement does not alter or extend the development schedule. Unless Goldfish Swim School agrees otherwise, all swim schools must operate under the Goldfish Swim School system.
If a location closes, the developer must find and secure an alternative location approved by Goldfish Swim School within six months and reopen within twelve months, all while maintaining the original development schedule. Failure to comply with the development schedule or secure a replacement location can result in the termination of the Area Development Agreement and the loss of rights to develop further locations. The opening of a replacement location does not count towards fulfilling the developer's obligations under the development schedule.