If requested by Goldfish Swim School, what must I provide regarding non-disclosure and non-competition agreements?

According to the 2025 Goldfish Swim School FDD, if requested by Goldfish Swim School, you must obtain non-disclosure and confidentiality agreements and covenants not to compete from yourself, your Principal Owners, officers, directors, shareholders, partners, members, and managers (if any), and other key employees. These agreements must be in a form satisfactory to Goldfish Swim School. This requirement ensures that all parties with access to Goldfish Swim School's trade secrets and confidential information are legally bound to protect it. The definition of "trade secrets" is broad, covering technical and non-technical data, formulas, patterns, compilations, programs, devices, methods, techniques, drawings, processes, financial data, financial plans, product plans, passwords, and lists of customers or suppliers. This information is critical to Goldfish Swim School's competitive advantage.

The FDD emphasizes the importance of maintaining the absolute confidentiality of proprietary information both during and after the term of the franchise agreement. Franchisees and related parties are prohibited from disclosing, copying, reproducing, selling, or using any such information in any other business or in any manner not specifically authorized by Goldfish Swim School in writing. This underscores the franchisor's commitment to safeguarding its intellectual property and proprietary systems.

By requiring these agreements, Goldfish Swim School aims to prevent unauthorized use or disclosure of its trade secrets and confidential information, which could harm its competitive position and the overall integrity of the franchise system. Prospective franchisees should carefully review the specific terms and conditions of these agreements to understand their obligations and restrictions regarding confidentiality and non-competition. It is also important to understand the potential costs associated with defending against any claims of breach of these agreements, as the franchisee may be required to indemnify Goldfish Swim School for any losses and expenses incurred.