factual

Can Goldfish Swim School modify or discontinue system-wide supply contracts?

Goldfish_Swim_School Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor may, in the exercise of its business judgment, enter into supply contracts either for all Swim Schools or a subset of Swim Schools situated within one or more geographic region(s) (each, a "system-wide supply contract"). Franchisor may enter into system-wide supply contracts with one or more vendors or products, services or equipment that all Franchised Swim Schools in a geographic area will be required to purchase, use or sell. If Franchisor does so, then immediately upon notification to Franchisee, Franchisee and all other franchised swim schools in the geographic area must purchase the specified product, service or equipment only from the designated supplier. However, if at the time of the notification to Franchisee, Franchisee is already a party to a non-terminable supply contract with another vendor or supplier for the product, service or equipment, then Franchisee's obligation to purchase from the designated supplier under the system-wide supply contract will not begin until the scheduled expiration (or earlier termination) of the pre-existing contract. Franchisor makes no representation that Franchisor will enter into any system-wide supply contracts or other exclusive supply arrangements or, if Franchisor does so, that Franchisee would not otherwise be able to purchase the same products and/or services at a lower price from another supplier. Franchisor may add to, modify, substitute or discontinue system-wide supply contracts or exclusive supply arrangements in the exercise of Franchisor's business judgment.

Source: Item 23 — RECEIPTS (FDD pages 77–389)

What This Means (2025 FDD)

According to the 2025 Goldfish Swim School FDD, Goldfish Swim School has the authority to modify, substitute, or discontinue system-wide supply contracts or exclusive supply arrangements. This is based on the franchisor's business judgment.

For a prospective franchisee, this means that the suppliers you are required to use for products, services, or equipment can change during the term of your franchise agreement. Goldfish Swim School does not guarantee that it will enter into any system-wide supply contracts or exclusive supply arrangements. Even if such contracts are established, Goldfish Swim School does not guarantee franchisees would not be able to find the same products or services at a lower price from another supplier.

However, if a franchisee already has a non-terminable supply contract with another vendor or supplier when Goldfish Swim School implements a system-wide supply contract, the franchisee's obligation to purchase from the designated supplier will not begin until the pre-existing contract expires or is terminated earlier. This provides some protection for franchisees who have existing supply agreements in place.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.