Does the Goldfish Swim School Franchise Agreement establish a fiduciary relationship between the parties?

According to the 2025 Goldfish Swim School Franchise Disclosure Document, the Franchise Agreement does not establish a fiduciary relationship between the parties. The agreement states that Goldfish Swim School is free to act in its own self-interest without any obligation to act reasonably or to consider the impact on the franchisee, unless specifically provided otherwise in the agreement or required by statute or regulation. This means that Goldfish Swim School is not legally obligated to prioritize the franchisee's interests above its own in most situations.

This lack of a fiduciary duty is a significant point for prospective franchisees to understand. In a typical franchise relationship, the franchisor and franchisee are independent parties, and the franchisor's decisions are not necessarily made with the franchisee's best interests in mind. Goldfish Swim School retains the right to make decisions that benefit the brand as a whole, even if those decisions may not directly benefit individual franchisees.

However, the agreement does specify that unless otherwise specifically provided, Goldfish Swim School is free to act in its own self-interest without any obligation to act reasonably, to consider the impact on the franchisee or to act subject to any other standard of care limiting Goldfish Swim School's right, except as may be provided by statute or regulation. This indicates that while a fiduciary relationship is not established, there may be specific instances outlined in the agreement or required by law where Goldfish Swim School's actions are subject to certain standards of care or reasonableness. Prospective franchisees should carefully review the entire Franchise Agreement and any applicable state laws to fully understand their rights and obligations.