Who is prohibited from engaging in competitive business activities related to a Goldfish Swim School franchise?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or Other Agreement | Summary |
|---|---|---|
| q. Non-competition covenants during the term of the franchise | Section 7.3 | Subject to any applicable state law, you, your owners (and members of their families and households) and your officers, directors, executives, managers, professional staff and employees are prohibited from: attempting to divert any business or customer of the franchised swim school to a competitive business or causing injury or prejudice to the Marks or the System; owning or working for a competitive business. |
| r. Non-competition covenants after the franchise is terminated or expires | Section 17.2 | Subject to any applicable state law, for 2 years after the termination or expiration of the Franchise Agreement, you, your owners (and members of their families and households) and your officers, directors, executives, managers or professional staff are prohibited from: owning or working for a competitive business operating within 25 miles of the franchise location or within the area of primary responsibility (whichever is greater), or within 25 miles of any other Goldfish Swim School; or soliciting or influencing any of our customers or business associates to compete with us or terminate their relationship with us. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 54–64)
What This Means (2025 FDD)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, several parties are restricted from engaging in competitive business activities during the term of the franchise agreement. These include the franchisee, their owners (along with members of their families and households), and the franchisee's officers, directors, executives, managers, professional staff, and employees. These individuals and entities are prohibited from attempting to divert business or customers away from the Goldfish Swim School franchise, causing harm to the Goldfish Swim School's trademarks or overall system, or owning/working for a competing business.
After the termination or expiration of the franchise agreement, the restrictions continue for a period of two years, subject to applicable state laws. During this post-term period, the franchisee, their owners (including family and household members), officers, directors, executives, managers, and professional staff are prohibited from owning or working for a competitive business operating within 25 miles of the former Goldfish Swim School location or within the area of primary responsibility (whichever is greater). The non-compete zone also extends to within 25 miles of any other Goldfish Swim School location. Furthermore, these parties are barred from soliciting or influencing any Goldfish Swim School customers or business associates to compete with Goldfish Swim School or terminate their relationship with the company.
These non-competition covenants are standard in franchising to protect the brand and prevent franchisees from using the franchisor's knowledge and resources to directly compete, either during the franchise term or immediately afterward. Prospective Goldfish Swim School franchisees should carefully review these restrictions and understand their scope, particularly the geographic limitations and the duration of the post-term non-compete obligations, as these could significantly impact their future business opportunities if they decide to exit the Goldfish Swim School system.