What happens after the death or incapacity of a Goldfish Swim School franchise owner?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or Other Agreement | Summary |
|---|---|---|
| manager if different from the Designated Manager will complete the initial training program before assuming management of the franchised swim school; the transferee has agreed that its swim instructors, the Designated Manager, and the on-site general manager will have obtained CPR, life guard and first aid certifications; and the franchise location is remodeled to the then-current brand standards. | ||
| n. Franchisor's right of first refusal to acquire franchisee's franchised swim school | Section 19 | We may match an offer for your franchised swim school or an ownership interest you propose to sell. |
| o. Franchisor's option to purchase franchisee's franchised swim school | Section 17.4 | Except as described in (n) above, we do not have the right to purchase your franchised swim school; however, during the 30-day period after the termination or expiration of the Franchise Agreement, we have the right to purchase any assets of the franchised swim school for fair market value. |
| p. Death or disability of franchisee | Section 18.6 | After the death or incapacity of an owner of the franchise, his or her representative must transfer, subject to the terms of the Franchise Agreement, the individual's interest in the franchise within 180 days of death or incapacity or we may terminate the Franchise Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 54–64)
What This Means (2025 FDD)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, if a franchise owner dies or becomes incapacitated, their representative is required to transfer the owner's interest in the franchise within 180 days, subject to the terms outlined in the Franchise Agreement. If the transfer does not occur within this timeframe, Goldfish Swim School has the right to terminate the Franchise Agreement.
This provision is important for prospective franchisees to consider, as it dictates how their investment in a Goldfish Swim School franchise will be handled in the event of death or incapacity. The 180-day window provides a limited time for the owner's representative to find a qualified buyer and complete the transfer process. This may require the representative to act quickly to assess the value of the franchise, market it to potential buyers, and negotiate a sale agreement that meets Goldfish Swim School's approval.
The requirement for Goldfish Swim School's approval of the transfer ensures that any new owner meets the franchisor's standards and is capable of operating the franchise successfully. This helps to protect the brand and maintain the quality of services provided at the Goldfish Swim School location. Franchisees should carefully review the transfer provisions in the Franchise Agreement to understand the specific requirements and procedures for transferring the franchise in the event of death or incapacity. Understanding these requirements ahead of time can help ensure a smooth and efficient transfer process and protect the value of the franchise investment.