Where can I find information about confidentiality obligations for a Goldfish Swim School franchise?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (9) Developer and Principal Owners, and Developer's officers, directors, shareholders, partners, members and managers, (if any) acknowledge that their respective entire knowledge of the operation of a Goldfish Swim School® Swim school and the System, including without limitation the knowledge or know-how regarding the specifications, standards and operating procedures of the services and activities, is derived from information we disclose to you and that certain information is proprietary, confidential, and constitutes our trade secrets.
The Term "trade secrets" refers to information in any form (including, but not limited to, technical or non-technical data, formulas, patterns, compilations, programs, devices, methods, techniques, drawings, processes, financial data, financial plans, product plans, passwords, lists of actual or potential customers or suppliers) related to or used in Goldfish Swim Schools that is not commonly known by or available to the public and that information: (a) derives economic value, actual or potential, from not being generally known to, and not being readily ascertained by proper means by, other persons who can obtain economic value from its disclosure or use; and (b) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
You and your Principal Owners, officers, directors, shareholders, partners, members, and managers (if any), jointly and severally, agree that at all times during and after the Term of this Agreement, you will maintain the absolute confidentiality of all such proprietary information and will not disclose, copy, reproduce, sell or use any such information in any other business or in any manner not specifically authorized or approved in advance in writing by us.
We require that you obtain nondisclosure and confidentiality agreements and covenants not to compete in a form satisfactory to us from the individuals listed in the first sentence of this paragraph and other key employees.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, details regarding confidentiality obligations can be found in Item 22, which discusses contracts. Specifically, it mentions that the Developer, Principal Owners, and their respective officers, directors, shareholders, partners, members, and managers acknowledge that their knowledge of the Goldfish Swim School system is derived from confidential information disclosed by the franchisor. This information is considered proprietary and constitutes trade secrets. Franchisees are obligated to maintain the absolute confidentiality of this information during and after the term of the agreement.
The FDD defines "trade secrets" as any information related to Goldfish Swim Schools that is not publicly known and provides economic value due to its secrecy. This includes technical and non-technical data, formulas, patterns, compilations, programs, methods, financial data, customer lists, and more. To protect this information, Goldfish Swim School requires franchisees to obtain nondisclosure and confidentiality agreements, as well as covenants not to compete, from key individuals and employees.
This means that as a Goldfish Swim School franchisee, you, your owners, and key staff will be legally bound to protect the franchisor's confidential information and trade secrets. This includes not disclosing, copying, reproducing, selling, or using the information in any unauthorized manner. Failure to comply with these confidentiality obligations could result in legal action and financial penalties. Prospective franchisees should carefully review the Nondisclosure and Non-Competition Agreement (Exhibit 2) attached to the Franchise Agreement to fully understand the scope of these obligations.