If a Goldfish Swim School developer pleads guilty to a felony, how does that affect their agreement?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
(12) Developer represents, warrants and covenants to us that neither Developer, nor any individual or entity owning directly or indirectly any interest of Developer (if Developer is a business entity) has been convicted of any crime, including without limitation, child abuse or neglect, criminal sexual conduct, or any other crime involving the well-being of children, embezzlement or other crimes of fraud, a crime involving moral turpitude or any other crime or offense that we reasonably believe is likely to adversely affect the Trademarks, the System or the goodwill associated therewith (whether in the Territory or elsewhere) or our interest therein.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, a developer's criminal history can impact their agreement. Specifically, the developer represents and warrants that neither they nor any individual or entity owning an interest in the developer has been convicted of certain crimes. These include child abuse or neglect, criminal sexual conduct, crimes involving the well-being of children, embezzlement, crimes of fraud, crimes involving moral turpitude, or any other crime that Goldfish Swim School reasonably believes is likely to adversely affect the Trademarks, the System, or the associated goodwill.
This representation is crucial because a conviction for any of these crimes could be grounds for concern for Goldfish Swim School. The franchisor aims to protect its brand reputation and the safety of its customers, particularly children. A developer's involvement in such activities could reflect poorly on the Goldfish Swim School system and undermine customer trust.
Therefore, if a Goldfish Swim School developer or an individual with an interest in the developing entity is convicted of such a crime, it could potentially lead to a breach of the development agreement. Goldfish Swim School would likely take action to protect its interests, which might include terminating the agreement. Prospective developers should be aware of this clause and ensure that they and their associates meet these standards to avoid potential conflicts with the franchisor.