What form must be executed by the Goldfish Swim School franchisee and each of their Principal Owners?

According to the 2025 Goldfish Swim School FDD, the franchisee and each of their Principal Owners must execute a form of guaranty. This requirement ensures that both the business entity (the franchisee) and the individuals with significant ownership stakes (Principal Owners) are held accountable for fulfilling the obligations outlined in the Area Development Agreement.

The Principal Owners are defined in Attachment 2 of the agreement as those who have record and beneficial ownership of, and the right to vote their respective interests (collectively one hundred percent (100%)) of your equity interests or the securities or partnership interest of any person or entity designated by us which owns or controls a direct or indirect interest in your equity interests of the Developer.

By signing the guaranty, the franchisee and Principal Owners personally guarantee the performance of the franchisee's duties under the Area Development Agreement. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and recourse in case of default or non-compliance. Prospective franchisees should carefully review the form of guaranty and understand the full extent of their obligations before signing the Area Development Agreement.