Can Goldfish Swim School require franchisees to purchase from the franchisor or an affiliate?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
5.4.7 purchase all supplies and inventory necessary for the operation of the Franchised Swim School consistent with the Confidential Brand Standards Manual;
5.4.3 ensure or employ an Approved Supplier (the Franchisee's Project Manager or Owner's Representative) to ensure that the location is suitable for the operation of a Goldfish Swim School, including, without limitation, proper ceiling heights, composition of the structure, size, composition and location of water lines, size and location of sewer lines, location and capacity of electrical service, location and size of gas service, fire suppression requirements, and soil conditions necessary for the construction of a pool and submit to Franchisor a completed site submission checklist in the form provided by Franchisor;
Franchisor has the right to change or modify the System from time to time including, without limitation, the adoption and use of new or modified Marks or copyrighted materials, the presentation of the Marks, and computer hardware, software, required equipment, inventory, supplies, signs or sales and marketing techniques, certification requirements, modifications to the Confidential Brand Standards Manual, the offered products and services, the building and premises of the Franchised Swim School (including the trade dress, décor, and color schemes), and the adoption of new administrative forms and methods of reporting and payment of any monies owed to Franchisor (including electronic means of reporting and payment). Within 30 days after receipt of written notice from Franchisor, Franchisee shall begin selling any newly authorized products and services and cease selling products and services that are no longer authorized. Franchisee shall accept and use any such changes in, or additions to, the System as if they were a part of this Agreement as of the Effective Date. Franchisee shall make such expenditures as such changes, additions or modifications in the System as Franchisor may require at Franchisee's sole cost and expense.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, franchisees must purchase all supplies and inventory necessary for operating their franchise consistent with the brand standards. Additionally, franchisees must use an Approved Supplier project manager/owner's representative to ensure the location is suitable for a Goldfish Swim School.
Goldfish Swim School has the right to modify the system from time to time. This includes changes to computer hardware, software, required equipment, inventory, supplies, and signs. Franchisees must begin selling any newly authorized products and services within 30 days of written notice from Goldfish Swim School and cease selling products and services that are no longer authorized.
These stipulations are common in franchising, as they allow Goldfish Swim School to maintain quality control and brand consistency across all locations. However, it's important for prospective franchisees to understand that these requirements can impact their operating costs and limit their flexibility in choosing suppliers. Franchisees bear the costs for changes or upgrades to the system that Goldfish Swim School may require.