What factors does Goldfish Swim School consider when determining the boundaries of the designated area?
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 FDD, the company considers several factors when determining the boundaries of a franchisee's designated area. These factors include the general population, the population size of children under 12 years old, proximity to competitors, proximity to other franchisees, and natural, physical, or political boundaries. The designated area is described and depicted in a map attached to or included in the Franchise Agreement.
This designated area is important because the Franchise Agreement licenses the franchisee to operate one Goldfish Swim School at a specific site within that area. Franchisees must obtain permission from Goldfish Swim School before relocating their swim school. 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 Goldfish Swim School system with a physical location in the franchisee's designated area.
It is important to note that franchisees receive no minimum territory, and the continuation of 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 the franchise agreement. Franchisees should carefully review the map and description of their designated area in Exhibit 10 of the Franchise Agreement to fully understand their territorial rights and restrictions.