Does the Goldfish Swim School franchise agreement include a Nondisclosure and Non-Competition Agreement?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
7.4 Nondisclosure and Non-Competition Agreements with Certain Individuals
Franchisor has the right to require any holder of a legal or beneficial interest in Franchisee (and any member of their immediate families or households), and any officer, director, executive, manager or member of the professional staff of Franchisee to execute a nondisclosure and non-competition agreement, in a form the same as or similar to the
- 17.2.3 In furtherance of this Section, Franchisor has the right to require certain individuals to execute standard form nondisclosure or non-competition agreements in a form the same as or similar to the Nondisclosure and Non-Competition Agreement attached as Exhibit 2 or as provided to Franchisee in the Confidential Brand Standards Manual.
17.2 Post-Termination Covenant Not to Compete
- 17.2.1 Franchisee acknowledges that the restrictive covenants contained in this Section and in Section 7 are fair and reasonable and are justifiably required for purposes including, but not limited to, the following:
- 17.2.1.1 to protect the Trade Secrets and other Confidential Information of Franchisor;
- 17.2.1.2 to induce Franchisor to grant a Franchise to Franchisee; and
- 17.2.1.3 to protect Franchisor against its costs in training Franchisee and its officers, directors, executives, professional staff, Designated Managers, and on-site general manager if different from the Designated Manager.
- 17.2.2 Except as otherwise approved in writing by Franchisor, neither Franchisee, nor any holder of a legal or beneficial interest in Franchisee, nor any officer, director, executive, Designated Manager, on-site general manager if different from the Designated Manager, or member of the professional management staff of Franchisee, shall, for a period of two (2) years after the expiration or termination of this Agreement, regardless of the cause of termination, either directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity:
- 17.2.2.1 own an interest in, manage, operate or provide services to any Competitive Business located or operating (a) within a twenty-five (25) mile radius of the Approved Location or within the Area of Primary Responsibility (whichever is greater), or (b) within a twenty-five (25) mile radius of the location of any other Goldfish Swim School in existence at the time of termination or expiration; or
- 17.2.2.2 solicit or otherwise attempt to induce or influence any customer or other business associate of Franchisor to terminate or modify his, her or its business relationship with Franchisor or to compete against Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, the franchise agreement includes both nondisclosure and non-competition agreements. Goldfish Swim School has the right to require any holder of legal or beneficial interest in the franchisee, their immediate families, and any officer, director, executive, manager, or member of the professional staff to execute a nondisclosure and non-competition agreement. This agreement will be in a form similar to the Nondisclosure and Non-Competition Agreement attached as Exhibit 2 or as provided in the Confidential Brand Standards Manual.
The franchise agreement states that franchisees acknowledge that the restrictive covenants are fair and reasonably required to protect Goldfish Swim School's trade secrets and confidential information, to induce the franchisor to grant a franchise, and to protect the franchisor against the costs of training the franchisee and its staff.
During the term of the Franchise Agreement and for two years after the expiration or termination of the agreement, the franchisee is restricted from engaging in any competitive business activities. This includes owning, managing, operating, or providing services to a competitive business within a 25-mile radius of the approved location or the Area of Primary Responsibility, or within a 25-mile radius of any other Goldfish Swim School. Franchisees are also prohibited from soliciting or attempting to influence any customer or business associate of the franchisor to terminate or modify their relationship with Goldfish Swim School.