What is the duration of the non-solicitation period for Goldfish Swim School business associates or customers after the termination of the Franchise Agreement?

According to the 2025 Goldfish Swim School FDD, a franchisee is restricted from soliciting Goldfish Swim School's business associates or customers for a period of two years after the termination of the Franchise Agreement. This restriction applies regardless of the reason for the termination. This means that for two years post-termination, a former franchisee cannot attempt to persuade business associates or customers to discontinue or alter their relationship with Goldfish Swim School in a way that would create competition.

This non-solicitation clause is designed to protect Goldfish Swim School's existing relationships and goodwill. It prevents a former franchisee from leveraging their knowledge of the Goldfish Swim School system and customer base to unfairly compete against the franchise after leaving the system. This type of clause is common in franchise agreements to safeguard the brand's established market position.

For a prospective franchisee, this means they must be prepared to refrain from actively pursuing Goldfish Swim School's business associates or customers for two years if they leave the franchise system. This could impact their ability to immediately start a competing business or work for a competitor in a capacity that involves contacting those associates or customers. It is important to fully understand the scope of this restriction and how it might affect future business opportunities before signing the Franchise Agreement.