If Goldfish Swim School franchisees are required to purchase uniforms, from whom must they be purchased?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
If required by Franchisor, any such items or services shall be purchased only from "Approved Suppliers" that Franchisor designates or approves (which might include, or be limited to, Franchisor or an Affiliate). Franchisor will from time to time provide you with a list of the Approved Suppliers. Franchisee shall not offer for sale, sell or provide through the Franchised Swim School or from the Approved Location any products or services that Franchisor has not approved. Franchisee shall not sell products or services on a wholesale basis, using its best efforts to ensure that is sales of products or services are to the end user customer. Franchisor may, in the exercise of its business judgment, enter into supply contracts either for all Swim Schools or a subset of Swim Schools situated within one or more geographic region(s) (each, a "system-wide supply contract"). Franchisor may enter into system-wide supply contracts with one or more vendors or products, services or equipment that all Franchised Swim Schools in a geographic area will be required to purchase, use or sell. If Franchisor does so, then immediately upon notification to Franchisee, Franchisee and all other franchised swim schools in the geographic area must purchase the specified product, service or equipment only from the designated supplier. However, if at the time of the notification to Franchisee, Franchisee is already a party to a non-terminable supply contract with another vendor or supplier for the product, service or equipment, then Franchisee's obligation to purchase from the designated supplier under the system-wide supply contract will not begin until the scheduled expiration (or earlier termination) of the pre-existing contract. Franchisor makes no representation that Franchisor will enter into any system-wide supply contracts or other exclusive supply arrangements or, if Franchisor does so, that Franchisee would not otherwise be able to purchase the same products and/or services at a lower price from another supplier. Franchisor may add to, modify, substitute or discontinue system-wide supply contracts or exclusive supply arrangements in the exercise of Franchisor's business judgment.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, franchisees may be required to purchase certain items from "Approved Suppliers" designated or approved by the franchisor, which may include the franchisor itself or an affiliate. Goldfish Swim School will provide a list of these Approved Suppliers to the franchisee. Franchisees must purchase specified products, services, or equipment only from the designated supplier if Goldfish Swim School enters into system-wide supply contracts for a geographic area. However, if the franchisee already has a non-terminable supply contract with another vendor at the time of notification, the obligation to purchase from the designated supplier will begin upon the expiration or termination of the pre-existing contract. Goldfish Swim School retains the right to modify or discontinue these supply contracts.
This means that as a Goldfish Swim School franchisee, you might be obligated to buy uniforms or other supplies from specific vendors chosen by the franchisor. This ensures consistency across all franchise locations and allows Goldfish Swim School to maintain quality control. However, it also means you might not be able to shop around for the best prices, as you're restricted to the approved supplier list.
It's important to note that Goldfish Swim School does not guarantee that these system-wide supply contracts will offer the lowest prices. Therefore, franchisees should be aware that they might not always get the most competitive deals on supplies. Before signing the franchise agreement, prospective franchisees should inquire about the typical items that must be purchased from approved suppliers and the process for suggesting new suppliers if they find better options.
Overall, while the approved supplier system ensures uniformity and quality, it also limits the franchisee's autonomy in purchasing decisions and could potentially lead to higher costs. Franchisees should carefully consider these factors and discuss any concerns with existing franchisees during their due diligence process.