What factors may Goldfish Swim School consider when conditioning the approval of a supplier?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
these Approved Supplies. If required by Franchisor, any such items or services shall be purchased only from "Approved Suppliers" that Franchisor designates or approves (which might include, or be limited to, Franchisor or an Affiliate). Franchisor will from time to time provide you with a list of the Approved Suppliers. Franchisee shall not offer for sale, sell or provide through the Franchised Swim School or from the Approved Location any products or services that Franchisor has not approved. Franchisee shall not sell products or services on a wholesale basis, using its best efforts to ensure that is sales of products or services are to the end user customer. Franchisor may, in the exercise of its business judgment, enter into supply contracts either for all Swim Schools or a subset of Swim Schools situated within one or more geographic region(s) (each, a "system-wide supply contract"). Franchisor may enter into system-wide supply contracts with one or more vendors or products, services or equipment that all Franchised Swim Schools in a geographic area will be required to purchase, use or sell. If Franchisor does so, then immediately upon notification to Franchisee, Franchisee and all other franchised swim schools in the geographic area must purchase the specified product, service or equipment only from the designated supplier. However, if at the time of the notification to Franchisee, Franchisee is already a party to a non-terminable supply contract with another vendor or supplier for the product, service or equipment, then Franchisee's obligation to purchase from the designated supplier under the system-wide supply contract will not begin until the scheduled expiration (or earlier termination) of the pre-existing contract. Franchisor makes no representation that Franchisor will enter into any system-wide supply contracts or other exclusive supply arrangements or, if Franchisor does so, that Franchisee would not otherwise be able to purchase the same products and/or services at a lower price from another supplier. Franchisor may add to, modify, substitute or discontinue system-wide supply contracts or exclusive supply arrangements in the exercise of Franchisor's business judgment.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, franchisees may be required to purchase certain items or services from suppliers that Goldfish Swim School designates or approves. These Approved Suppliers might include Goldfish Swim School itself or one of its affiliates. Goldfish Swim School will provide franchisees with a list of these Approved Suppliers. Franchisees are prohibited from selling or providing any products or services through the Goldfish Swim School that have not been approved by the franchisor.
Goldfish Swim School may enter into system-wide supply contracts with vendors for products, services, or equipment that all franchised swim schools in a specific geographic area will be required to purchase, use, or sell. If such a contract is established, franchisees in the designated area must purchase from the specified supplier immediately upon notification. However, if a franchisee already has a non-terminable supply contract with another vendor for the same product, service, or equipment at the time of notification, the obligation to purchase from the designated supplier will not begin until the pre-existing contract expires or is terminated.
Goldfish Swim School retains the right to add to, modify, substitute, or discontinue system-wide supply contracts or exclusive supply arrangements based on its business judgment. The FDD states that Goldfish Swim School makes no representation that it will enter into any system-wide supply contracts or exclusive supply arrangements, or that franchisees would not otherwise be able to purchase the same products or services at a lower price from another supplier. This implies that franchisees should be prepared to adapt to changes in required suppliers and should not assume they will always receive the lowest possible price.