Who at Goldfish Swim School can be required to execute a nondisclosure and non-competition agreement?

According to Goldfish Swim School's 2025 Franchise Disclosure Document, the franchisor has the right to require certain individuals to sign a nondisclosure and non-competition agreement. These individuals include any holder of a legal or beneficial interest in the franchisee, as well as members of their immediate families or households. Additionally, any officer, director, executive, manager, or member of the professional staff of the franchisee may also be required to execute such an agreement.

This provision allows Goldfish Swim School to protect its confidential information, trade secrets, and business interests by preventing key individuals associated with the franchise from disclosing sensitive information or competing with the franchise during and after their involvement. The agreement aims to maintain the integrity of the Goldfish Swim School system and prevent unfair competition.

For a prospective franchisee, this means that not only the franchisee themselves but also other individuals closely connected to the business, such as family members with an ownership stake or key employees, may be subject to these agreements. Franchisees should carefully review the terms of these agreements and ensure that all affected parties understand their obligations. It is also important to consider the potential impact on hiring and staffing decisions, as certain candidates may be unwilling to sign such agreements.

This requirement is fairly standard in the franchise industry, as franchisors typically seek to protect their brand, operational methods, and customer relationships. However, the specific scope and terms of the nondisclosure and non-competition agreements can vary, so it is crucial for franchisees to understand the restrictions and obligations they and their associated parties are undertaking.