To whom may a franchisee divulge trade secrets and other confidential information of Goldfish Swim School?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
We have developed certain trade secrets and other confidential information, including methods of business management, sales and promotion techniques, and know-how, knowledge of, and experience in, operating a Goldfish Swim School. We will provide our trade secrets and other confidential information to you during training, in the Confidential Brand Standards Manual and as a result of the assistance we furnish you during the term of the franchise. You may only use the trade secrets and other confidential information for the purpose of operating your franchised swim school. You may only divulge trade secrets and other confidential information to employees who must have access to it to operate the franchised swim school. You are responsible for enforcing the confidentiality provisions as to your employees.
Certain individuals with access to trade secrets or other confidential information, including your owners, shareholders, officers, directors, partners, members, if you are a corporation, limited liability company or other business entity, and your Designated Manager(s), on-site general manager if different from the Designated Manager, other managers of the Franchised Swim School, and executives are required to sign nondisclosure and non-competition agreements in a form the same as or similar to the Nondisclosure and Non-Competition Agreement attached to the Franchise Agreement. We will be a third-party beneficiary with the right to enforce those agreements. You must ensure that your employees with access to Confidential Information execute a Nondisclosure Agreement in the form similar to the form attached to the Franchise Agreement to prevent your employees from using or disclosing our Confidential Information after their employment terminates.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 51–52)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, franchisees may only share trade secrets and confidential information with employees who require access to it in order to operate the franchised swim school. The franchisee is responsible for ensuring that these employees maintain confidentiality.
Goldfish Swim School requires certain individuals with access to trade secrets or other confidential information to sign nondisclosure and non-competition agreements. These individuals include owners, shareholders, officers, directors, partners, members (if the franchisee is a corporation, limited liability company, or other business entity), designated managers, on-site general managers (if different from the designated manager), other managers of the franchised swim school, and executives. Goldfish Swim School is a third-party beneficiary of these agreements and has the right to enforce them.
Furthermore, franchisees must ensure that their employees with access to confidential information sign a Nondisclosure Agreement, similar to the one attached to the Franchise Agreement, to prevent them from using or disclosing confidential information after their employment ends. This is a common practice in franchising to protect the franchisor's proprietary information and maintain a competitive advantage.