If Goldfish Swim School prosecutes a Confidentiality and Non-Disclosure Agreement, what is the developer's obligation?

According to Goldfish Swim School's 2025 Franchise Disclosure Document, if Goldfish Swim School prosecutes a Confidentiality and Non-Disclosure Agreement and Covenant Not to Compete, the developer is obligated to indemnify and hold Goldfish Swim School harmless from any and all losses and expenses as provided in the agreement. This means the developer would be responsible for covering any costs or damages that Goldfish Swim School incurs as a result of the developer's breach of the agreement.

This obligation extends to protecting Goldfish Swim School from losses and expenses related to the enforcement of the confidentiality and non-disclosure agreement. This could include legal fees, court costs, and any damages awarded to Goldfish Swim School if the developer violates the agreement. The developer's responsibility to indemnify Goldfish Swim School is a significant one, as it could potentially involve substantial financial liabilities depending on the nature and extent of the breach.

This requirement is fairly standard in franchising, as franchisors need to protect their trade secrets, systems, and brand reputation. Franchise agreements typically include clauses that hold franchisees accountable for any damages or losses the franchisor incurs due to the franchisee's actions or failure to comply with the agreement. Prospective Goldfish Swim School developers should carefully review the terms of the Confidentiality and Non-Disclosure Agreement and Covenant Not to Compete to fully understand the scope of their indemnification obligations.