What kind of investigation should a prospective Goldfish Swim School franchisee conduct before entering into the agreement?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ded, in whole or in part, except by a writing signed by you and us.
K. You and each of your Principal Owners shall execute the form of guaranty at the end of this Agreement.
L. You further acknowledge that you have conducted an independent investigation of the business franchised pursuant to this Agreement and recognize the business venture contemplated by this Agreement involves the normal business risks associated with beginning a new business. As part of such investigation, you acknowledge that you had ample opportunity to consult with advisors of your own choosing about the potential benefits and risks of entering into this agreement. You acknowledge that you are entering into this Agreement based upon your own investigation and not as a result of any representations about us made by shareholders, members, officers, directors, employees, agents, representatives, independent contractors, or franchisees which are contrary to the terms set forth in this Agreement or any franchise disclosure document required or permitted to be given to Franchise Owner pursuant to applicable law.
M. You acknowledge that the only financial performance information we furnished is set forth in Item 19 of the Franchise Disclosure Document; that no, officer, director, member, employee, agent, representative or independent contractor of ours is authorized to furnish you with any other financial performance information; that if they nevertheless do, you will not rely on any such financial performance information given to you by any such individual; and that if any such individual attempts to or actually does give you any such financial performance information in contravention of this provision, you will immediately communicate such activity to us.
N. You represent that you have been urged to consult with your own advisors with respect to the legal, financial and other aspects of this Agreement, the business franchised hereby and the prospects for that business. You represent that you have either consulted with such advisors or has deliberately declined to do so.
O. You represent that all information set forth in any and all applications, financial statements and submissions to us is true, complete and accurate in all respects, and you acknowledge that we are relying upon the truthfulness, completeness and accuracy of such information.
P. You acknowledge that before executing this Agreement, you had the opportunity to contact all of our existing franchisees.
Q.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, a prospective franchisee must conduct an independent investigation of the business opportunity. This investigation should focus on the prospects for establishing swim schools within the designated territory. The FDD emphasizes that the success of the venture is subject to business and economic risks and will largely depend on the franchisee's and their management's efforts. Goldfish Swim School explicitly disclaims making any guarantees or warranties, whether express or implied, regarding potential gross sales, profits, earnings, or the overall financial success of the swim schools developed within the territory, except as provided in the Franchise Disclosure Document itself.
This independent investigation should include consulting with advisors of the franchisee's choosing to assess the potential benefits and risks associated with entering into the franchise agreement. Goldfish Swim School states that the franchisee acknowledges they are entering into the agreement based on their own due diligence and not as a result of any unauthorized representations made by the franchisor's shareholders, members, officers, directors, employees, agents, representatives, independent contractors, or franchisees that contradict the terms outlined in the agreement or the franchise disclosure document.
Prospective franchisees should be wary of any financial performance information not explicitly provided in Item 19 of the Franchise Disclosure Document. Goldfish Swim School clarifies that no officer, director, member, employee, agent, representative, or independent contractor is authorized to provide any other financial performance information. If such information is provided, the franchisee is advised not to rely on it. This reinforces the importance of relying on verified information and conducting thorough due diligence through independent sources and advisors.