Is a Goldfish Swim School franchisee prohibited from influencing a business associate to terminate their relationship with another Goldfish Swim School?

According to the 2025 Goldfish Swim School Franchise Disclosure Document, a franchisee is indeed prohibited from influencing a business associate or customer to terminate their relationship with Goldfish Swim School. Specifically, during the term of the Franchise Agreement and for two years after termination, a franchisee cannot directly or indirectly solicit or attempt to influence any business associate or customer of the franchisee, the company, or any other Goldfish Swim School to compete against, terminate, or modify their business relationship. This restriction applies regardless of the reason for termination of the franchise agreement.

This provision is designed to protect Goldfish Swim School's business relationships and goodwill. It prevents franchisees from leveraging their knowledge and connections gained during their time with the franchise to harm the system, either during the franchise term or for a period after they leave the system. This type of restriction is common in franchising to maintain stability and prevent unfair competition.

For a prospective franchisee, this means that upon exiting the Goldfish Swim School system, they must be careful not to disrupt existing relationships between the company, other franchisees, and their business associates or customers. Violating this clause could lead to legal repercussions and financial penalties. It is important to understand the scope and duration of this restriction before entering into a franchise agreement with Goldfish Swim School.