What individuals associated with a Goldfish Swim School franchise may be required to sign a non-disclosure or non-competition agreement?

According to the 2025 Goldfish Swim School FDD, the franchisor has the right to require certain individuals to sign non-disclosure and non-competition agreements. These individuals include any holder of a legal or beneficial interest in the franchisee, as well as members of their immediate families or households. Additionally, the franchisor may require any officer, director, executive, manager, or member of the professional staff of the franchisee to sign such agreements. These agreements are intended to protect the franchisor's confidential information and trade secrets.

These non-disclosure and non-competition agreements are typically standard form agreements, similar to the one attached as Exhibit 2 in the FDD or as provided in the Confidential Brand Standards Manual. The agreements aim to prevent individuals associated with the Goldfish Swim School franchise from engaging in activities that could harm the brand or unfairly compete with the franchisor. This is a common practice in franchising to safeguard the franchisor's business interests and maintain brand consistency.

For a prospective franchisee, this means that not only will the franchisee be subject to non-compete and non-disclosure agreements, but also certain related parties and employees. It is important to carefully review the terms of these agreements and understand the restrictions they impose. Franchisees should also ensure that all individuals who may be required to sign these agreements are aware of their obligations and are willing to comply with them. This requirement helps Goldfish Swim School maintain its competitive edge and protect its proprietary information.