What happens if Goldfish Swim School does not accept a proposed site?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
shall have the right to request any additional materials or information it desires with respect to the proposed location and Franchisee shall provide such information immediately. Within a reasonable time (usually thirty [30] days) following the receipt of both:
(a) preliminary site acceptance, and (b) any additional materials from Franchisee requested by Franchisor with respect to the proposed location, Franchisor shall provide final acceptance or rejection of such proposed location. If Franchisor accepts such selection, the site shall be designated as the Approved Location. If Franchisor does not accept of such selection, Franchisee shall select and notify Franchisor of new sites until Franchisor accepts a site for the Franchised Swim School. Franchisor shall provide Franchisee with general guidelines to assist Franchisee in selecting a site suitable for the Approved Location. Franchisee shall ensure that any proposed site meets the then-current Standards and Specifications, including, without limitation demographic criteria, proximity to other existing or potential future Goldfish Swim School locations, proximity to Franchisor's designated location for a location within the Designated Area, parking availability, ceiling heights, composition of the structure, size, composition and location of water lines, size and location of sewer lines, location and capacity of electrical service, location and size of gas service, fire suppression requirements, and soil conditions necessary for the construction of a pool.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, if Goldfish Swim School does not accept a proposed site, the franchisee must continue to select and notify Goldfish Swim School of new sites until Goldfish Swim School accepts a site for the Franchised Swim School. Goldfish Swim School will provide general guidelines to assist the franchisee in selecting a suitable site. The franchisee must ensure that any proposed site meets the then-current Standards and Specifications. These include demographic criteria, proximity to other existing or potential future Goldfish Swim School locations, proximity to Goldfish Swim School's designated location for a location within the Designated Area, parking availability, ceiling heights, composition of the structure, size, composition and location of water lines, size and location of sewer lines, location and capacity of electrical service, location and size of gas service, fire suppression requirements, and soil conditions necessary for the construction of a pool.
If the franchisee fails to select a site accepted by Goldfish Swim School within 180 days after the effective date of the agreement (the "Site Selection Period"), Goldfish Swim School has the right to terminate the agreement. If the agreement is terminated, Goldfish Swim School will return 25% of the franchise fee paid by the franchisee. This refund is contingent upon Goldfish Swim School's receipt of a general release from the franchisee, releasing any and all claims against Goldfish Swim School, its affiliates, and their officers, directors, shareholders, managers, and members.
This clause highlights the importance of site selection in the Goldfish Swim School franchise process. Franchisees should carefully consider Goldfish Swim School's site criteria and guidelines to avoid potential delays or termination of the franchise agreement. The franchisee bears the risk of finding an acceptable location within the given timeframe. The return of only 25% of the franchise fee upon termination due to site selection failure means the franchisee could lose a substantial portion of their initial investment, underscoring the need for thorough due diligence and proactive site selection efforts.