What is the geographic scope of the non-compete restriction for a Goldfish Swim School franchisee after termination or expiration of the franchise agreement?
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, after the expiration or termination of the franchise agreement, a franchisee is restricted from engaging in any competitive business. 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 around the franchisee's Goldfish Swim School location or the franchisee's defined territory, whichever area is larger. Additionally, the non-compete also extends to a 25-mile radius of any other existing Goldfish Swim School at the time of termination or expiration. The franchisee must obtain express written consent from Goldfish Swim School to engage in a competitive business within these restricted areas.
This non-compete clause is designed to protect Goldfish Swim School's market and trade secrets. It prevents former franchisees from using the knowledge and customer relationships gained during their franchise term to unfairly compete with existing Goldfish Swim School locations. Prospective franchisees 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.