What are the requirements for maintaining supervision of a Goldfish Swim School following the death or incapacity of the franchisee?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
hereto. Franchisee hereby specifically consents to such disclosure by Franchisor and shall release and hold Franchisor harmless from and against any claim, loss or injury resulting from an inspection of Franchisor's records relating to the Franchised Swim School by an intended transferee identified by Franchisee.
18.5 For-Sale Advertising
Franchisee shall not, without prior written consent of Franchisor which shall not be unreasonably withheld, place in, on or upon the location of the Franchised Swim School, or in any communication media, any form of advertising relating to the sale of the Franchised Swim School or the rights granted hereunder.
18.6 Transfer by Death or Incapacity
18.6.1 Upon the death or Incapacity of Franchisee (if Franchisee is an individual) or any holder of a legal or beneficial interest in Franchisee (if Franchisee is a business entity), the appropriate representative of such person (whether administrator, personal representative or trustee) shall, within a reasonable time not exceeding one hundred eighty (180) days following such event, transfer such individual's interest in the Franchised Swim School or in Franchisee to a third party approved by Franchisor. Such transfers, including transfers by will or inheritance shall be subject to the conditions for assignments and transfers contained in this Agreement, unless prohibited by the laws of the state wherein Franchisee resided, with such choice of law provision being applicable only for this Section 18.6. During such one hundred eighty (180) day period, the Franchised Swim School must remain at all times under the primary management of a Designated Manager, an on-site general manager if different from the Designated Manager, and Control Person who otherwise meets Franchisor's management qualifications. Upon the death or Incapacity of the Control Person, Franchisee shall name a replacement Control Person within ten (10) days of such date of death or Incapacity and Franchisee and new Control Person shall comply with the terms of this Agreement and the Confidential Brand Standards Manual.
18.6.2 Following such a death or Incapacity of such person as described in this Section 18.6, if necessary in Franchisor's discretion, Franchisor shall have the right, but not the obligation, to assume operation of the Franchised Swim School until the deceased or incapacitated owner's interest is transferred to a third party approved by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, in the event of the death or incapacity of a franchisee or any holder of a legal or beneficial interest in the franchise, their representative must transfer the interest to a franchisor-approved third party within 180 days. During this 180-day period, the Goldfish Swim School must be under the primary management of a Designated Manager, an on-site general manager (if different from the Designated Manager), and a Control Person who meets Goldfish Swim School's management qualifications. If the Control Person dies or becomes incapacitated, a replacement Control Person must be named within ten days, and both the franchisee and the new Control Person must adhere to the franchise agreement and the Confidential Brand Standards Manual.
If necessary, Goldfish Swim School has the right, but not the obligation, to assume operation of the franchised swim school until the interest is transferred. If Goldfish Swim School assumes operation, they may charge a management fee, currently $600.00 per day, and be reimbursed for any expenses incurred, including travel and lodging.
Failure to maintain the Goldfish Swim School under the primary supervision of a Designated Manager and an on-site general manager (if different from the Designated Manager) during the 180-day period following the death or incapacity of the franchisee or any holder of a legal or beneficial interest in the franchisee is grounds for termination of the franchise agreement.