During an individual's relationship with a Goldfish Swim School franchisee, can the individual be involved with a competitive business anywhere in the United States?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- b) During the term of Individual's relationship with Franchisee, Individual shall not, directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, carry on, be engaged in or take part in, render services to, operate, or own or share in the earnings of any Competitive Business anywhere within the United States without the express written consent of Company, and for a period of two (2) years thereafter, regardless of the cause of termination, Individual shall not, directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, carry on, be engaged in or take part in, render services to, operate, or own or share in the earnings of any Competitive Business (a) within a twenty-five (25) mile radius of the location of Franchisee's Franchised Swim School or within Franchisee's territory as provided in the Franchise Agreement (whichever is greater), or (b) within a twenty-five (25) mile radius of the location of any other Goldfish Swim School in existence at the time of termination or expiration, without the express written consent of Company.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, an individual with a relationship with a franchisee is restricted from involvement with competitive businesses. During the term of their relationship with the franchisee, the individual cannot engage in, render services to, operate, or own any Competitive Business anywhere in the United States without express written consent from Goldfish Swim School. This restriction applies to any involvement, direct or indirect, whether for themselves or in conjunction with any other entity.
Following the termination of the relationship with the franchisee, the individual is further restricted for a period of two years. During this time, they cannot engage in a Competitive Business within a 25-mile radius of the franchisee's swim school or within the franchisee's designated territory, whichever is greater. Additionally, they are prohibited from involvement within a 25-mile radius of any other Goldfish Swim School existing at the time of termination, again without the company's express written consent.
These non-competition clauses are designed to protect Goldfish Swim School's market position, trade secrets, and customer relationships. The definition of "Competitive Business" includes any business offering swim instruction to children similar to that of Goldfish Swim Schools, or any business where the company's trade secrets could be used to its disadvantage. Prospective franchisees should carefully consider these restrictions and how they might impact future business opportunities for themselves and related individuals.