Does the Goldfish Swim School Franchise Agreement include a General Release?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or Other Agreement | Summary |
|---|---|---|
| with current training and certification requirements; pay to us the renewal fee of $10,000; and sign a general release in a form the same as or similar to the General Release attached to the Franchise Agreement. | ||
| m. Conditions for franchisor approval of transfer | Section 18.2 | We will consent to a transfer if: we have not exercised our right of first refusal; all obligations owed to us are paid; you and the transferee have signed a general release in a form the same as or similar to the General Release attached to the Franchise Agreement; the prospective transferee meets our business and financial standards; the transferee and all persons owning any interest in the transferee sign the then current Franchise Agreement; you provide us with a copy of all contracts and agreements related to the transfer; you or the transferee pay a transfer fee of 50% of the then-current initial franchise fee; the transferee or the owners of transferee have agreed to be personally bound by all provisions of the Franchise Agreement; you have agreed to guarantee performance by the transferee, if requested by us; the transferee has obtained all necessary consents and approvals of third parties; you or all of your equity owners have signed a non-competition agreement in a form the same as or similar to the Nondisclosure and Non-Competition attached to the Franchise Agreement; the transferee has agreed that its Designated Manager or on-site general |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 54–64)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, the Franchise Agreement does include a General Release. Specifically, a franchisee must sign a general release under certain conditions to transfer their franchise. Goldfish Swim School requires that both the outgoing franchisee and the incoming transferee sign a general release "in a form the same as or similar to the General Release attached to the Franchise Agreement." This indicates that a standard General Release document is part of the franchise agreement.
Additionally, a franchisee must sign a general release to renew their franchise agreement with Goldfish Swim School. To renew, the franchisee must comply with current training and certification requirements, pay a renewal fee of $10,000, and sign a general release that is the same or similar to the General Release attached to the Franchise Agreement.
The inclusion of a general release is a fairly common practice in franchising. It protects Goldfish Swim School from potential liabilities or claims arising from the previous franchisee's operation of the business or from the renewal of the franchise agreement. Prospective franchisees should carefully review the terms of the General Release with a legal professional to understand the full scope of what they are releasing and ensure it is reasonable in its protections for Goldfish Swim School.