Can a Goldfish Swim School franchisee use any credit card vendor they choose?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall, at its expense, lease or purchase the necessary equipment and/or software and shall have arrangements in place with Visa, MasterCard, American Express and such other credit card issuers as Franchisor may designate, from time to time, to enable the Franchised Swim School to accept such methods of payment from its customers.
Franchisee shall also accept debit cards, stored value gift cards or other non-cash payment systems specified by Franchisor to enable customers to purchase authorized products and services.
Franchisee shall obtain all necessary hardware and/or software used in connection with these non-cash payment systems.
At all times, Franchisee shall maintain credit card relationships with the credit and debit card issuers or sponsors, check or credit verification services, financial center services, and electronic funds transfer systems (together, "Credit Card Vendors") that Franchisor designates as mandatory.
The term Credit Card Vendors includes among other things, companies that provide services for electronic payment, such as near field communication vendors (for example, "Apple Pay" and "Google Wallet").
Franchisee may not use any Credit Card Vendors that Franchisor has not approved in writing or for which Franchisor has revoked approval.
Franchisor has the right to modify the requirements and designate additional approved or required methods of payment and vendors for processing such payments, and to revoke approval of any such service provider.
Franchisee must sign a Gift Card Participation Agreement if required to designate a vendor or to establish procedures for administering the gift card program.
Franchisee must comply with Franchisor's credit card policies, including minimum purchase requirements for a customer's use of a credit card as prescribed in the Confidential Brand Standards Manual.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, franchisees do not have complete autonomy in selecting credit card vendors. Goldfish Swim School mandates that franchisees must use only those credit card vendors that the franchisor has approved in writing. Furthermore, Goldfish Swim School retains the authority to modify these requirements, designate additional approved vendors, or revoke approval of any service provider.
This means a prospective Goldfish Swim School franchisee must use the credit card processing services that the franchisor mandates. The franchisee is responsible for the costs associated with leasing or purchasing the necessary equipment and software to accommodate these payment methods. They must also establish arrangements with Visa, MasterCard, American Express, and any other credit card issuers that Goldfish Swim School designates.
This policy ensures uniformity and potentially allows Goldfish Swim School to negotiate favorable rates or integrate payment processing with its broader technology systems. However, it also means that franchisees cannot shop around for potentially lower rates or use existing relationships with other vendors. Franchisees must also adhere to Goldfish Swim School's credit card policies, including any minimum purchase requirements for credit card use, as detailed in the Confidential Brand Standards Manual.
This requirement extends beyond traditional credit card processors to include services for electronic payments, such as near field communication vendors like Apple Pay and Google Wallet. Franchisees are obligated to sign a Gift Card Participation Agreement if required, designating a vendor or establishing procedures for administering the gift card program. Compliance with these stipulations is essential for maintaining alignment with Goldfish Swim School's operational standards.