Does the non-compete agreement for Goldfish Swim School extend to influencing business associates to terminate relationships with other Goldfish Swim School locations?

According to the 2025 Goldfish Swim School FDD, the non-compete agreement extends to preventing individuals associated with a franchise from influencing business associates to terminate or modify their relationships with other Goldfish Swim School locations. Specifically, during the term of the individual's relationship with the franchisee and for two years after termination, the individual cannot solicit or attempt to influence any business associate or customer of the franchisee, the company, or any other Goldfish Swim School to compete against or terminate their business relationship. This restriction applies regardless of the reason for termination of the individual's relationship with the franchisee.

This provision means that a franchisee and certain related individuals (owners, staff, etc.) are restricted from actively trying to persuade business partners or customers to cease doing business with any Goldfish Swim School. This is designed to protect the entire Goldfish Swim School system from potential harm caused by franchisees or their associates who might try to undermine the business relationships of other locations. The term 'business associate' is not defined.

For a prospective franchisee, this clause highlights the importance of maintaining ethical business practices and ensuring that all staff members are aware of and adhere to these restrictions. Violating this non-compete provision could lead to legal repercussions and damage the goodwill associated with the Goldfish Swim School brand. Franchisees should ensure they understand the full scope of these restrictions and how they apply to their specific circumstances.