For how long after the termination of an individual's relationship with a Goldfish Swim School franchisee is the individual prohibited from diverting business or customers to a competitive business?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
2(a) of this Agreement shall continue in effect i) after termination of Individual's relationship with Franchisee, regardless of the reason or reasons for termination, and whether such termination is voluntary or involuntary, and ii) after the termination of the Franchise Agreement between Franchisee and the Company, regardless of the reason or reasons for termination and whether
such termination is voluntary or involuntary. Company is entitled to communicate the Franchisee Parties' obligations under this Agreement to any future customer or employer to the extent deemed necessary by Company for protection of its rights hereunder and regardless of whether the Franchisee Parties or any of their respective affiliates or assigns becomes an investor, partner, joint venturer, broker, distributor or the like in a Goldfish Swim School.
3. Non-Competition – Individual Owner
- a) During the term of Individual's relationship with Franchisee and for a period of two (2) years after the expiration or termination of Individual's relationship with Franchisee, regardless of the cause of expiration or 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, divert or attempt to divert any business or customer of Franchisee to any Competitive Business, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Company's service mark "Goldfish Swim School®" and such other trade names, trademarks, service marks, trade dress, designs, graphics, logos, emblems, insignia, fascia, sloga
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 is restricted from diverting business or customers to a competitive business for a period of two years after the termination of their relationship with a Goldfish Swim School franchisee. This restriction applies regardless of the reason for termination, whether it is voluntary or involuntary.
This non-compete obligation means that for two years post-termination, the individual cannot directly or indirectly attempt to take away any business or customers from the Goldfish Swim School franchise. This includes actions that could harm the goodwill associated with the Goldfish Swim School brand, its service marks, trade names, trademarks, and other commercial symbols.
Furthermore, during this two-year period, the individual is also prohibited from soliciting or attempting to influence any business associate or customer of the franchisee, the company, or any other Goldfish Swim School to compete against or terminate their relationship with the franchise. This is a broad restriction designed to protect the franchise's customer base and business relationships.
This clause is significant for anyone considering working for a Goldfish Swim School franchisee, as it limits their ability to work in a competing business for two years after their relationship with the franchisee ends. Prospective employees should carefully consider this restriction before accepting a position with a Goldfish Swim School franchise.