What legend must each Security bear regarding Transfers for a Goldfish Swim School Developer?

According to the 2025 Goldfish Swim School FDD, each Security issued after the date of the agreement must comply with Section 7.A.(7). The developer is prohibited from removing or allowing the removal of the legend described in Section 7.A.(7) from any Security or its partnership agreement. Additionally, the developer cannot issue any Security that does not have this legend endorsed upon it.

This requirement ensures that any transfer of ownership or equity in the Goldfish Swim School franchise is done in accordance with the franchisor's stipulations and that all parties involved are aware of the restrictions and obligations associated with the franchise agreement. This protects the franchisor's interests by maintaining control over who becomes involved in the franchise and ensuring compliance with the franchise agreement's terms.

For a prospective Goldfish Swim School franchisee, this means that any stock, partnership interest, or other equity or voting interest issued in the development entity must carry a specific legend as dictated by Section 7.A.(7) of the franchise agreement. This legend likely outlines the restrictions on transfer, the franchisor's rights, and other important terms related to ownership changes. It is crucial for franchisees to understand the implications of this legend and ensure that all securities issued comply with this requirement to avoid potential breaches of the franchise agreement.