What happens if a general release is prohibited for a Goldfish Swim School Developer?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Developer (and any transferring owners, if Developer is a business entity) has executed a general release, in a form as required by Franchisor, of any and all claims against Franchisor, including its officers, directors, shareholders, managers, members, partners, owners, employees and agents (in their corporate and individual capacities), including, without limitation, claims arising under federal, state or local laws, rules or ordinances, and any other matters incident to the termination of this Agreement or to the transfer of Developer's interest herein or to the transfer of Developer's ownership of all or any part of the development rights; provided, however, that if a general release is prohibited, Developer shall give the maximum release allowed by law;
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, a developer (and any transferring owners, if the developer is a business entity) typically must execute a general release of all claims against Goldfish Swim School as a condition of transfer. This release covers any claims against the franchisor, its officers, directors, shareholders, managers, members, partners, owners, employees, and agents, including claims arising under federal, state, or local laws.
However, if a general release is prohibited by law, the developer is required to provide the maximum release allowed by law. This means that the developer must still release as many claims as legally possible, even if a complete release is not permitted.
This condition ensures that Goldfish Swim School is protected from potential legal liabilities when a developer transfers their interest. Prospective developers should be aware of this requirement and understand the legal limitations on releases in their specific jurisdiction. It is advisable to consult with a legal professional to fully understand the implications of this clause and the extent to which a release can be enforced in their state.