Is Goldfish Swim School liable for any act or omission of the Developer?

According to the 2025 Goldfish Swim School Franchise Disclosure Document, Goldfish Swim School does not assume liability for the actions of the developer. Specifically, Goldfish Swim School will not be held liable for agreements, representations, or warranties made by the developer that are not expressly authorized in the agreement. Furthermore, Goldfish Swim School is not obligated for damages to any person or property that arise from the developer's operation of the franchised swim schools.

This indicates that as a developer, you assume significant responsibility for your actions and operations. It is crucial to understand the scope of your obligations and liabilities as outlined in the agreement. This includes ensuring that all agreements, representations, and warranties you make are expressly authorized by Goldfish Swim School to avoid potential legal issues.

This allocation of liability is a common practice in franchising, where franchisees or developers typically bear the responsibility for their day-to-day operations and any liabilities arising from them. However, prospective developers should carefully review the franchise agreement and consult with legal counsel to fully understand their obligations and potential risks. It is important to secure adequate insurance coverage to protect against potential liabilities and to implement sound business practices to minimize risks associated with operating the Goldfish Swim School.

In summary, the FDD clarifies that Goldfish Swim School aims to maintain an arm's-length relationship with its developers regarding liability. Developers should be aware that they are primarily responsible for their own actions and the operation of their franchised locations.