What is the geographic area restriction on operating a Competitive Business after termination of the Goldfish Swim School franchise, based on the franchisee's territory?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- b) During the term of the Franchise Agreement, Franchisee shall not, directly or indirectly, for itself or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, carry on, be engaged in or take part in, render services to, operate, or own or share in the earnings of any Competitive Business anywhere within the United States without the express written consent of Company, and for a period of two (2) years thereafter, regardless of the cause of termination, Franchisee shall not, directly or indirectly, for itself or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, carry on, be engaged in or take part in, render services to, operate, or own or share in the earnings of any Competitive Business (a) within a twenty-five (25) mile radius of the location of Franchisee's Franchised Swim School or within Franchisee's territory as provided in the Franchise Agreement (whichever is greater), or (b) within a twenty-five (25) mile radius of the location of any other Goldfish Swim School in existence at the time of termination or expiration, without the express written consent of Company.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, both the franchisee and certain individuals associated with the franchisee are restricted from engaging in any Competitive Business after the termination of the Franchise Agreement. This restriction lasts for two years, regardless of the reason for termination.
The geographic scope of this restriction includes two possibilities: a 25-mile radius of the franchisee's Goldfish Swim School location, or the franchisee's territory as defined in the Franchise Agreement, whichever area is larger. Additionally, the restriction extends to a 25-mile radius of any other Goldfish Swim School that existed at the time of termination or expiration of the agreement. To engage in a Competitive Business within these restricted areas, the franchisee must obtain express written consent from Goldfish Swim School.
This non-compete clause is designed to protect Goldfish Swim School's trade secrets, confidential information, and investment in franchisee training. It also prevents former franchisees from unfairly leveraging the brand's goodwill and customer relationships to the detriment of the franchisor and other franchisees. Franchisees should carefully consider these restrictions and their potential impact on future business opportunities before entering into a franchise agreement with Goldfish Swim School.