Does the Goldfish Swim School franchisee have the right to assign the Real Estate Lease to Goldfish Swim School at any time?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Termination of Franchise Agreement. Upon termination or expiration without renewal of the Franchise Agreement, GOLDFISH shall have the option to accept the assignment of the Real Estate Lease pursuant to this Agreement by giving the notice prescribed
first refusal or otherwise, such assignment to become effective upon the occurrence of either of
the following:
by this Conditional Assignment of Lease, in which case it is agreed the Real Estate Lease shall remain in effect as to GOLDFISH.
- B. Termination of Real Estate Lease. Upon termination of the Real Estate Lease as to Franchisee or termination of Franchisee's possession rights under the Real Estate Lease, whether by Franchisee's default under the Real Estate Lease or otherwise, GOLDFISH shall have the option to accept the assignment of the Real Estate Lease pursuant to this Agreement by giving the notice prescribed by this Conditional Assignment of Lease, in which case it is agreed the Real Estate Lease shall remain in effect as to GOLDFISH.
- C. Franchisee Right to Assign. At Franchisee's discretion, Franchisee may assign the Real Estate Lease to GOLDFISH, and GOLDFISH may accept such assignment, at any time.
GOLDFISH has no liability whatsoever with respect to the Lease unless and until GOLDFISH exercises its option to take assignment of the Lease as described in this Agreement.
GOLDFISH may assign its rights hereunder to an affiliate of GOLDFISH, who may take assignment of such rights prior to any GOLDFISH's acceptance of assignment of the Real Estate Lease.
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- Effect of Assignment. Upon GOLDFISH's exercise of its option to take the above-described assignment:
- A. Franchisee shall be relieved from any further liability under the provisions of the Real Estate Lease and the Real Estate Lease shall be terminated as to Franchisee; provided; however, that Franchisee shall remain liable for any amounts owing, or any other default occurring, prior to the effective date of assignment.
- B. GOLDFISH shall succeed to all of Franchisee's rights, options, and obligations under the Real Estate Lease commencing with the effective date of the assignment and shall have the right to transfer or assign the Real Estate Lease to another GOLDFISH® Franchisee without the need to seek consent from the Landlord. GOLDFISH's transfer to another GOLDFISH® Franchisee relieves GOLDFISH from any further liability under the Real Estate Lease.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, a franchisee has the discretion to assign the Real Estate Lease to Goldfish Swim School at any time, and Goldfish Swim School may accept such assignment.
This means that a Goldfish Swim School franchisee is not obligated to continue with their lease agreement and can transfer it to Goldfish Swim School if they choose. This provides flexibility for the franchisee if they encounter financial difficulties or wish to exit the business before the lease term expires. Goldfish Swim School's acceptance of the assignment is not guaranteed, but the option is available to the franchisee.
Upon Goldfish Swim School's acceptance of the assignment, the franchisee is relieved from further liability under the Real Estate Lease, provided they have fulfilled all obligations up to the assignment date. Goldfish Swim School then assumes all rights, options, and obligations under the lease and can transfer or assign the lease to another Goldfish Swim School franchisee without needing the landlord's consent. This clause protects the franchisee from long-term lease obligations if they decide to transfer the business back to Goldfish Swim School.