factual

Does the Goldfish Swim School non-compete agreement prevent an individual from soliciting business associates or customers of other Goldfish Swim School locations?

Goldfish_Swim_School Franchise · 2025 FDD

Answer from 2025 FDD Document

  • c) During the term of Individual's relationship with Franchisee and for a period of two (2) years thereafter, regardless of the cause of termination, Individual shall not, directly or indirectly, solicit or otherwise attempt to induce or influence business associate or

customer of Franchisee, Company or any other Goldfish Swim School to compete against, or terminate or modify his, her or its business relationship with, Franchisee, Company or any other Goldfish Swim School.

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

What This Means (2025 FDD)

According to the 2025 Goldfish Swim School Franchise Disclosure Document, the non-compete agreement does address the solicitation of business associates or customers of other Goldfish Swim School locations. Specifically, during the term of an individual's relationship with a franchisee and for two years after, the individual is prohibited from soliciting or attempting to influence any business associate or customer of the franchisee, the company, or any other Goldfish Swim School. This restriction aims to prevent unfair competition and protect the business relationships established within the Goldfish Swim School franchise system.

This provision means that a franchisee, or anyone associated with a Goldfish Swim School, cannot actively try to lure away customers or business partners from other Goldfish Swim School locations. This restriction applies not only during the active franchise agreement but also extends for a period of two years after the agreement terminates, regardless of the reason for termination. The term 'business associate' is not defined.

For a prospective franchisee, this non-solicitation clause is an important consideration. It ensures that franchisees are protected from direct competition from former employees or other franchisees within the Goldfish Swim School system. However, it also means that franchisees and their staff must be careful not to engage in any activities that could be interpreted as soliciting customers or business associates from other locations, even after their relationship with the franchise ends.

This type of non-solicitation agreement is common in franchising to protect the brand's integrity and the investment of individual franchisees. Goldfish Swim School aims to maintain a collaborative environment where franchisees can grow their businesses without fear of internal poaching or interference.

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.