Does Goldfish Swim School guarantee any lease agreement on behalf of the franchisee?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall execute a lease for, or a binding agreement to purchase within the Site Selection Period, the Approved Location, the terms of which must have been previously approved by Franchisor in writing. Franchisor shall not unreasonably withhold its acceptance. If Franchisee leases the Approved Location, Franchisee shall control or have options to control the Approved Location for the operation of the Franchised Swim School for the Term of this Agreement. Franchisor's review of a lease or purchase agreement, or any advice or recommendation offered by Franchisor, shall not constitute a representation or guarantee that Franchisee will succeed at the Approved Location nor constitute an expression of Franchisor's opinion regarding the terms of such lease or purchase agreement. Franchisor will not guarantee any lease agreement on behalf of Franchisee. Franchisee acknowledges and agrees that Franchisee shall solely rely on its review of any such lease.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, Goldfish Swim School will not guarantee any lease agreement on behalf of the franchisee. While Goldfish Swim School must approve the terms of the lease in writing, this review does not constitute a guarantee of the franchisee's success at the location, nor does it represent an opinion on the lease terms. The franchisee acknowledges that they are solely responsible for reviewing the lease.
This means that prospective Goldfish Swim School franchisees must conduct their own due diligence when securing a location and negotiating lease terms. They cannot rely on Goldfish Swim School to ensure the suitability or financial viability of the lease. This is a standard practice in franchising, as the franchisee typically bears the responsibility for their own business's financial obligations.
It is important for potential franchisees to seek legal and financial advice when reviewing lease agreements to fully understand their obligations and potential risks. This includes carefully examining factors such as rent, lease duration, renewal options, and any potential liabilities associated with the property.