What happens if a Goldfish Swim School franchisee defaults on the lease of the Approved Location?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
3. Notice of Franchisee's Default.
- A. Landlord's Notice. Landlord shall provide GOLDFISH notice of any default under the Real Estate Lease. GOLDFISH shall have the option (but not obligation) to cure any default should Franchisee fail to cure the default within the period in which Franchisee has to cure the default. At the expiration of Franchisee's period in which Franchisee has to cure any default, G
5.3.11 a provision requiring Franchisee, at the expiration or termination of the lease, to completely de-identify the leased premises, including without limitation, filling in the pools, and removal of all plumbing and pump equipment, removal of all indicia of affiliation with Franchisor, and a full restoration of the leased premises to a "white box." Further, if Franchisee fails to perform such actions, Franchisor may enter the leased premises, without being liable for trespass or other damages as to landlord and perform such restoration actions to restore the leased premises to a "white box."
On or before the expiration or earlier termination of this Lease, Tenant's restoration of the Leased Premises shall be limited solely to the following, which shall be at Tenant's sole cost and expense: to (i) removal of the then existing pool coping, (i) filling the then existing in-ground pool to its original condition with compacted sand or granular backfill; (ii) removal of the then existing above-grade pool related equipment; and (iii) properly capping and sealing any below grade pipes related to the pool system (collectively, the "Pool Restoration Obligation").
- 16.2.1.7 abandons, fails or refuses to actively operate the Franchised Swim School for five (5) or more consecutive days (unless the Franchised Swim School has not been operational for a purpose approved by Franchisor), or, if first approved by Franchisor, fails to promptly relocate the Franchised Swim School following the expiration or termination of the lease for the Approved Location, the destruction or condemnation of the Approved Location or any other event rendering the Approved Location unusable;
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, if a franchisee defaults on their real estate lease, the landlord is required to notify Goldfish Swim School. Goldfish Swim School then has the option, but not the obligation, to cure the default if the franchisee fails to do so within the allotted cure period. If the lease expires or terminates, the franchisee must completely de-identify the leased premises, including filling in the pools, removing plumbing and pump equipment, and removing any signs of affiliation with Goldfish Swim School, restoring the premises to a "white box".
If the franchisee fails to restore the premises to a "white box" condition after the lease expires or terminates, Goldfish Swim School has the right to enter the premises and perform the restoration themselves, without being liable for trespass or other damages to the landlord. The franchisee is responsible for the costs associated with restoring the Leased Premises, limited to removing the pool coping, filling the in-ground pool with compacted sand or granular backfill to its original condition, removing above-grade pool equipment, and properly capping and sealing any below-grade pipes related to the pool system.
Furthermore, if the franchisee abandons, fails, or refuses to actively operate the Goldfish Swim School for five or more consecutive days without approval from Goldfish Swim School, or fails to promptly relocate the swim school after the lease expires or terminates due to events rendering the location unusable, it can be considered a cause for termination of the franchise agreement. This highlights the importance of maintaining active operation and addressing lease issues promptly to avoid potential termination of the franchise agreement.