Are Goldfish Swim School franchisees required to indemnify for violations of industry standards?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ee for our expenses in so acting and interest at one and one-half percent (1.5%) per month from the date acquired, shall be payable by Developer upon notice.
13. INDEMNIFICATION
A. Developer and each Principal will, at all times and at your sole cost and expense, indemnify and hold harmless, to the fullest extent permitted by law, Our Indemnitees from all "Losses and Expenses" incurred in connection with any Action, suit, proceeding, claim, demand, investigation or inquiry (formal or informal), or any settlement thereof (whether or not a formal proceeding or Action has been instituted or reduced to judgment) which actually or allegedly, directly or indirectly, arises out of, is a result of, is based upon, is a result of, or is related in any way to any of the following:
- (1) The infringement, alleged infringement, or any other violation or alleged violation by Developer or any Principal of any
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, franchisees are required to indemnify Goldfish Swim School and related parties. Specifically, the franchisee must indemnify the franchisor from Losses and Expenses incurred due to any action, suit, proceeding, or claim that directly or indirectly arises from a violation of any industry standard. This means the franchisee is financially responsible for legal and other costs if their actions related to the Goldfish Swim School business operations violate industry standards.
This indemnification clause places a significant financial burden on the Goldfish Swim School franchisee. If a claim arises from an alleged violation of industry standards, the franchisee is responsible for covering the franchisor's associated losses and expenses. This could include legal fees, settlement costs, and other related expenses, even if the claim is ultimately unsuccessful.
It is important for prospective Goldfish Swim School franchisees to fully understand the scope of this indemnification provision. They should consult with legal counsel to assess the potential risks and liabilities associated with this clause. Franchisees should also ensure they have adequate insurance coverage to protect themselves against potential claims related to violations of industry standards. This type of clause is relatively common in franchise agreements, but the specific terms and potential financial impact can vary significantly.