For Goldfish Swim School franchises in Indiana, what is the geographic limitation of the post-term non-competition covenant?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Therefore, during the term of this Agreement, neither Developer nor any holder of a legal or beneficial interest in Developer (or any member of their immediate families or households), nor any officer, director, executive, manager or member of the professional staff of Developer, either directly or indirectly, for themselves, or through, on behalf of or in conjunction with any person, partnership, corporation, limited liability company or other business entity, shall:
(1) Divert or attempt to divert any business or customer of the Franchised Swim School to any Competitive Business, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks or the System; or
(2) Own an interest in, manage, operate, or perform services for any Competitive Business wherever located.
D.
Franchisor has the right to require any holder of a legal or beneficial interest in Developer (and any member of their immediate families or households), and any officer, director, executive, manager or member of the professional staff and all employees of Developer to execute a nondisclosure and non-competition agreement, in a form as required by Franchisor, upon execution of this Agreement or prior to each such person's affiliation with Developer.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
Based on the 2025 Goldfish Swim School Franchise Disclosure Document, there is no addendum that discusses specific geographic limitations regarding post-term non-competition covenants for franchisees in the state of Indiana within the provided excerpts. However, the document does state that during the term of the agreement, the franchisee cannot operate or provide services to a competitive business, regardless of its location.
Item 22 describes that Goldfish Swim School has the right to require any person with legal or beneficial interest in the Developer to execute a non-disclosure and non-competition agreement. This agreement is required upon execution of the agreement or prior to the person's affiliation with the Developer.
Prospective franchisees in Indiana should seek clarification from the franchisor regarding the specific geographic scope and duration of the post-term non-competition covenant. It would be prudent to consult with a legal professional to fully understand the implications of such a covenant in Indiana, as these can vary significantly based on state laws and the specifics of the franchise agreement.