Must the holders of a legal and beneficial interest in the Goldfish Swim School franchisee execute a non-disclosure and non-competition agreement?

According to the 2025 Goldfish Swim School Franchise Disclosure Document, Goldfish Swim School has the right to require any holder of a legal or beneficial interest in the franchisee to execute a non-disclosure and non-competition agreement. This also extends to any member of their immediate families or households, and any officer, director, executive, manager or member of the professional staff of the franchisee. The agreement would be in a form the same as or similar to the Parties and Company with respect to the Trade Secrets and other Confidential Information.

This requirement ensures that confidential information and trade secrets of Goldfish Swim School are protected. It also prevents individuals with inside knowledge of the franchise from using that information to compete against Goldfish Swim School, either during the term of the agreement or for a specified period after its termination. This is a fairly standard practice in franchising, especially for concepts that rely heavily on proprietary systems and information.

As a prospective franchisee, it's important to carefully review the non-disclosure and non-competition agreement to understand the specific restrictions and obligations it imposes. You should also consider how these restrictions might affect your future business activities, especially if you plan to be actively involved in the management of the Goldfish Swim School franchise. It would be prudent to seek legal counsel to fully understand the implications of these agreements before signing the franchise agreement.