What precautions must a Goldfish Swim School franchisee take to ensure employee confidentiality?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall take all necessary precautions to ensure that any employee to whom Franchisee discloses Confidential Information only to the extent necessary for such employee to carry out the employee's job duties maintains the Confidential Information in confidence and comply with the confidentiality provisions of this Agreement.
Franchisee shall obtain from all persons and business entities to whom Confidential Information is disclosed, or who otherwise receives or process Confidential Information, an executed Confidentiality and Non-Disclosure Agreement and Covenant Not to Compete or a Confidentiality and Non-Disclosure Agreement, as applicable, in the form as provided in the Confidential Brand Standards Manual.
Franchisee shall enforce this Section as to its owners, officers, directors, members, managers, employees, agents and representatives and shall be liable to Franchisor for any unauthorized disclosure or use of Trade Secrets or other Confidential Information by any of them.
Franchisee shall vigorously and vigilantly prosecute to the fullest extent permitted by law breaches of any Confidentiality and Non-Disclosure Agreement and Covenant Not to Compete or Confidentiality and Non-Disclosure Agreement, as applicable, executed by any of the persons and business entities to whom Franchisee has disclosed Confidential Information or who have otherwise received or processed Confidential Information.
Franchisee acknowledges Franchisor's right, to be exercised as Franchisor alone determines, to enforce for itself the terms of such executed Confidentiality and Non-Disclosure Agreement and Covenant Not to Compete or Confidentiality and Non-Disclosure Agreement.
If the substantive provisions of the Confidentiality and Non-Disclosure Agreement and Covenant Not to Compete have been breached by a person or business entity employed, engaged or otherwise serving the Franchised Swim School who has not executed a Confidentiality and Non-Disclosure Agreement and Covenant Not to Compete or Confidentiality and Non-Disclosure Agreement, Franchisee shall nevertheless vigorously and vigilantly prosecute such conduct to the fullest extent permitted by law.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, franchisees must take several precautions to ensure employee confidentiality. Franchisees must ensure that any employee to whom they disclose confidential information maintains that information in confidence and complies with the confidentiality provisions outlined in the Franchise Agreement. This disclosure should only occur to the extent necessary for the employee to perform their job duties.
To formalize these confidentiality obligations, Goldfish Swim School franchisees are required to obtain executed Confidentiality and Non-Disclosure Agreements (or Confidentiality and Non-Disclosure Agreements and Covenants Not to Compete, as applicable) from all individuals and business entities to whom Confidential Information is disclosed or who otherwise receive or process it. The specific form of these agreements is provided in the Confidential Brand Standards Manual. Franchisees must also adopt and implement all reasonable procedures prescribed by Goldfish Swim School to prevent unauthorized use or disclosure of trade secrets and other confidential information, including keeping such information in a secure place accessible only to the Designated Manager or on-site general manager when not in use.
Furthermore, the franchisee is responsible for enforcing these confidentiality provisions among their owners, officers, directors, members, managers, employees, agents, and representatives. The franchisee is liable to Goldfish Swim School for any unauthorized disclosure or use of trade secrets or other confidential information by any of these parties. The franchisee must also vigorously prosecute any breaches of the Confidentiality and Non-Disclosure Agreements to the fullest extent permitted by law. Even if an individual who has not signed such an agreement breaches the confidentiality provisions, the franchisee is still obligated to prosecute such conduct vigorously. These measures ensure that Goldfish Swim School's confidential information is protected at all levels of the franchise operation.