Does the geographic restriction on operating a Competitive Business after termination of the Goldfish Swim School Franchise Agreement apply to other Goldfish Swim School locations?
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, the geographic restriction on operating a Competitive Business after the termination of the Franchise Agreement does apply to other Goldfish Swim School locations. Specifically, for a period of two years after the termination of the Franchise Agreement, the franchisee cannot engage in a Competitive Business within a 25-mile radius of either their former Goldfish Swim School location or any other Goldfish Swim School that existed at the time of termination. This restriction applies regardless of the reason for termination.
This non-compete clause ensures that former franchisees do not directly compete with existing Goldfish Swim School locations, protecting the brand's market share and goodwill. The restriction extends beyond the franchisee's own territory to prevent them from opening a competing business near any other Goldfish Swim School location.
This provision is fairly standard in franchising to protect the brand and other franchisees. A prospective franchisee should carefully consider the implications of this restriction, especially if they plan to remain in the same geographic area after leaving the Goldfish Swim School system. They should also seek legal counsel to fully understand the enforceability and scope of the non-compete agreement in their specific jurisdiction.