Regarding the Goldfish Swim School agreement, what dates are relevant to the Developer?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
er Location under this paragraph shall not satisfy the Developer's obligation to open Locations under this Section 3 of this Agreement.
- C. We make no representation or warranty as to the number of Swim schools that can be operated in the Territory. Developer assumes all cost, liability, expense, risk and responsibility for locating, obtaining, and developing Locations for Swim schools, and for constructing and equipping Swim schools at such Locations. Developer shall obtain our approval to each Location (including, without limitation, the Trademarks which shall be used to identify the Swim school at the Location to the public) pursuant to the time frames set forth in the applicable Franchise Agreement so that Developer maintains compliance with the Development Schedule, including submission of our then-existing Location selection criteria and procedures including:
- (1) selecting a real estate professional ("Real Estate Broker") that has been selected by Developer for site selection for the next Goldfish Swim School to be developed under this Agreement, which Real Estate Broker is subject to approval of Franchisor in its sole discretion no later than eight (8) months prior to the Occupancy Contract Date set forth in the Development Schedule (the "Broker Engagement Date"). Developer acknowledges and agrees that Franchisor reserves the right to designate to Developer a preferred Real Estate Broker to be used by Developer in connection with its location search for its next Goldfish Swim School location. After approval of said Real Estate Broker, the Developer covenants and agrees that the Developer shall, and shall cause its Real Estate Broker to, complete and actively participate in any and all site selection update requests of the Franchisor, including completing any and all forms or documents requested by Franchisor on the timelines requested by Franchisor and actively participating in any requested teleconference updates requested by Franchisor;
- (2) timely submission of all Development Materials to us; and
- (3) with respect to each Swim school to be developed hereunder, completion of one (1) Location visit by us at our sole cost and expense, if we require.
- (4) You must not be in default of this Agreement, any Franchise Agreement entered into pursuant to this Agreement or any other agreement between you and any of your affiliates and us or any of our affiliates. You must have satisfied on a timely basis all monetary and material obligations under the Franchise Agreements for all existing Swim schools.
Time is of the essence.
- D. Within a reasonable time (usually fifteen [15] days) following receipt of all Development Materials and completion of any such visit, we shall consent to or reject such Location. Our failure to consent shall constitute rejection of such Location. Promptly after our consent is obtained, but prior to commencing construction at such Location, Developer shall execute a Franchise Agreement and pay the Franchise Fee.
- E. Neither our (i) consent to, nor (ii) assistance in the selection of, any Location shall constitute our representation or warranty that a Swim school operated at such Site will be profitable or meet any financial projection.
F. We shall have the right to review and consent to the Occupancy Contract prior to the execution thereof, which consent shall not be unreasonably withheld. A copy of the proposed Occupancy Contract shall be provided to us within thirty (30) days of the date of our consent. The Occupancy Contract shall be executed by all necessary parties within thirty (30) days following our consent thereto. Developer shall furnish us a complete copy of the executed Occupancy Contract within the (10) days after execution. Unless it conveys to Developer fee simple title to the Location, the landlord shall consent to the Conditional Assignment of Lease, attached as Exhibit 6 to the Franchise Agreement, consistent with the Terms of the Franchise Agreement. Landlord and Developer shall not amend the Occupancy Contract in any way which is inconsistent with the provisions of the Franchise Agreement or the Conditional Assignment of Lease.
G.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, several dates are critical for the Developer under the Area Development Agreement. The agreement commences on the Commencement Date and continues until the Term expires. The agreement automatically expires on the opening date specified in Section 3.A for the last swim school to be opened. The Developer must select a real estate professional no later than eight months prior to the Occupancy Contract Date outlined in the Development Schedule; this date is referred to as the Broker Engagement Date.
The Development Schedule in Attachment 1 of the Area Development Agreement specifies the dates by which each swim school must be open and operating. If a location closes, the Developer has six months to secure a suitable alternative location and twelve months to open for business at the new location, all while maintaining the original Development Schedule.
These dates are crucial because failure to meet the Development Schedule can lead to termination of the Area Development Agreement and the loss of rights to develop additional Goldfish Swim School locations. The Developer must also deliver any notice of default under the Occupancy Contract that threatens termination immediately. Therefore, adhering to these timelines and obligations is essential for the Developer to maintain their rights and successfully develop Goldfish Swim School locations within the designated territory.