Does Goldfish Swim School have the power to hire or fire a Developer's employees?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall not have the power to hire or fire Developer's employees.
Developer expressly agrees, and will never contend otherwise, that Franchisor's authority under this Agreement to certify certain of Developer's employees for qualification to perform certain functions for Developer does not directly or indirectly vest in Franchisor the power to hire, fire, or control such employee.
Developer acknowledges and agrees, and will never contend otherwise, that Developer alone will exercise day-to-day control over all operations, activities and elements of the development and operation of the Franchised Swim Schools developed hereunder and that under no circumstance shall Franchisor do so or be deemed to do so.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, Goldfish Swim School does not have the authority to hire or fire a Developer's employees. The FDD states that the Developer is solely responsible for their employees, who are not considered employees of Goldfish Swim School Franchising, LLC. This means the Developer has full control over staffing decisions.
This arrangement protects Goldfish Swim School from potential liabilities related to the Developer's employees, such as insurance, taxes, and withholdings. It also reinforces the independent contractor relationship between the Developer and Goldfish Swim School. The Developer is responsible for the day-to-day control over all operations, activities, and elements of the development and operation of the Franchised Swim Schools.
While Goldfish Swim School may certify certain of the Developer's employees for specific functions, this certification does not give Goldfish Swim School the power to hire, fire, or control those employees. The Developer retains full authority over employment matters. This is a common arrangement in franchising, where franchisees operate independently while adhering to the franchisor's system standards.
This delineation of responsibilities is further emphasized by the fact that the Developer alone exercises day-to-day control over the Swim School's operations. The standards and requirements set forth by Goldfish Swim School are in place to ensure consistency and quality within the franchise system, but they do not imply control over the Developer's employees or daily operations.