What happens if the Franchise Agreement for a Goldfish Swim School is terminated?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
17.1 Actions to be Taken
Except as otherwise provided herein, upon termination or expiration, this Agreement and all rights granted hereunder to Franchisee shall terminate and Franchisee shall:
- 17.1.1 immediately cease to operate the Franchised Swim School and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor;
- 17.1.2 cease to use the Trade Secrets, Confidential Information, the System and the Marks including, without limitation, all signs, slogans, symbols, logos, advertising materials, stationery, forms and any other items which display or are associated with the Marks;
- 17.1.3 take such action as may be necessary to cancel or assign to Franchisor, at Franchisor's option, any assumed name or equivalent registration filed with state, city or county authorities which contains the name "Goldfish Swim School®" or any other Mark, and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement;
- 17.1.4 pay all sums owing to Franchisor and any Affiliate. In the event of termination for any default of Franchisee, such sums shall include, but not be limited to, all damages, costs and expenses, including reasonable attorneys' fees with respect to litigation, arbitration, appellate or bankruptcy proceedings, unpaid Royalty Fees, loss of future Royalty Fee payments incurred by Franchisor as result of any early termination of this Agreement, and any other amounts due to Franchisor or any Affiliate;
- 17.1.5 pay to Franchisor all costs and expenses, including reasonable attorneys' fees, incurred by Franchisor subsequent to the termination or expiration of the Franchise in obtaining injunctive or other relief for the enforcement of any provisions of this Agreement;
- 17.1.6 immediately return to Franchisor the Confidential Brand Standards Manual, Trade Secrets and all other Confidential Information including records, files, instructions, brochures, agreements, disclosure statements and any and all other materials provided by Franchisor to Franchisee relating to the operation of the Franchised Swim School (all of which are acknowledged to be Franchisor's property);
- 17.1.7 assign, pursuant to the Telephone Number Assignment form attached to this Agreement as Exhibit 8, all telephone listings and numbers for the Franchised Swim School to Franchisor and shall notify the telephone company and all listing agencies of the termination or expiration of Franchisee's right to use any telephone numbers or facsimile numbers associated
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, several actions must be taken by the franchisee upon termination or expiration of the Franchise Agreement. The franchisee must immediately cease operating the Goldfish Swim School and cannot represent themselves as a current or former franchisee. They must also stop using any of Goldfish Swim School's trade secrets, confidential information, the System, and the Marks, including all related signage and advertising materials.
Additionally, the franchisee is obligated to take necessary actions to cancel or assign any assumed names containing "Goldfish Swim School®" or any other Mark to the franchisor. Notification and evidence of compliance must be provided to Goldfish Swim School within 30 days of termination or expiration. All sums owed to Goldfish Swim School and its affiliates must be paid, including damages, costs, attorney's fees, unpaid royalty fees, and loss of future royalty fee payments resulting from early termination. The franchisee is also responsible for covering all costs and expenses incurred by Goldfish Swim School in obtaining relief for enforcement of any agreement provisions.
The franchisee must return the Confidential Brand Standards Manual, trade secrets, and all other confidential information to Goldfish Swim School. Furthermore, the franchisee must assign all telephone listings and numbers for the Goldfish Swim School to the franchisor, notifying the telephone company and listing agencies of the termination of their right to use these numbers.
Moreover, for a period of two years after termination, the franchisee is restricted from engaging in any competitive business within a 25-mile radius of their former Goldfish Swim School location or any other existing Goldfish Swim School, and they cannot solicit or induce customers or business associates to compete against Goldfish Swim School. These non-compete and non-solicitation clauses are designed to protect Goldfish Swim School's market position and brand reputation after a franchise agreement ends.