factual

What are the requirements for non-disclosure and non-competition agreements for individuals affiliated with a Goldfish Swim School franchise?

Goldfish_Swim_School Franchise · 2025 FDD

Answer from 2025 FDD Document

7.4 Nondisclosure and Non-Competition Agreements with Certain Individuals

Franchisor has the right to require any holder of a legal or beneficial interest in Franchisee (and any member of their immediate families or households), and any officer, director, executive, manager or member of the professional staff of Franchisee to execute a nondisclosure and non-competition agreement, in a form the same as or similar to the

2. Confidentiality/Non-Disclosure

  • a) The Franchisee Parties shall not communicate, divulge, or permit access to (or use for the benefit of) any other person, firm, association, or corporation, with the sole exception of Franchisee, now or at any time in the future, any Trade Secrets or other Confidential Information. At all times from the date of this Agreement, the Franchisee Parties must take all steps reasonably necessary and/or requested by Company to ensure that the Confidential Information and Trade Secrets are kept confidential and secured pursuant to the terms of this Agreement. The Franchisee Parties must comply with all applicable policies, procedures and practices that Company has established and may establish from time to time with regard to the Confidential Information and Trade Secrets, and Individual must also comply with all applicable policies, procedures and practices that Franchisee has established and may establish from time to time with regard to the Confidential Information and Trade Secrets.
  • b) The Franchisee Parties' obligations under paragraph 2(a) of this Agreement shall continue in effect i) after termination of Individual's relationship with Franchisee, regardless of the reason or reasons for termination, and whether such termination is voluntary or involuntary, and ii) after the termination of the Franchise Agreement between Franchisee and the Company, regardless of the reason or reasons for termination and whether

such termination is voluntary or involuntary. Company is entitled to communicate the Franchisee Parties' obligations under this Agreement to any future customer or employer to the extent deemed necessary by Company for protection of its rights hereunder and regardless of whether the Franchisee Parties or any of their respective affiliates or assigns becomes an investor, partner, joint venturer, broker, distributor or the like in a Goldfish Swim School.

3. Non-Competition – Individual Owner

  • a) During the term of Individual's relationship with Franchisee and for a period of two (2) years after the expiration or termination of Individual's relationship with Franchisee, regardless of the cause of expiration or termination, Individual shall not, directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, divert or attempt to divert any business or customer of Franchisee to any Competitive Business, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Company's service mark "Goldfish Swim School®" and such other trade names, trademarks, service marks, trade dress, designs, graphics, logos, emblems, insignia, fascia, slogans, drawings and other commercial symbols as Company designates to be used in connection with Goldfish Swim Schools or Company's uniform standards, methods, procedures and specifications for the establishment and operation of Goldfish Swim Schools.

  • b) During the term of Individual's relationship with Franchisee, Individual shall not, directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, carry on, be engaged in or take part in, render services to, operate, or own or share in the earnings of any Competitive Business anywhere within the United States without the express written consent of Company, and for a period of two (2) years thereafter, regardless of the cause of termination, Individual shall not, directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, carry on, be engaged in or take part in, render services to, operate, or own or share in the earnings of any Competitive Business (a) within a twenty-five (25) mile radius of the location of Franchisee's Franchised Swim School or within Franchisee's territory as provided in the Franchise Agreement (whichever is greater), or (b) within a twenty-five (25) mile radius of the location of any other Goldfish Swim School in existence at the time of termination or expiration, without the express written consent of Company.

Source: Item 23 — RECEIPTS (FDD pages 77–389)

What This Means (2025 FDD)

According to the 2025 Goldfish Swim School FDD, the franchisor has the right to require any holder of legal or beneficial interest in the franchisee, including their immediate family or household members, as well as any officer, director, executive, manager, or member of the professional staff, to execute a non-disclosure and non-competition agreement. This agreement aims to protect Goldfish Swim School's trade secrets and confidential information.

The non-disclosure component of the agreement ensures that these individuals do not disclose or use any trade secrets or confidential information, taking necessary steps to keep such information secure, even after their relationship with the franchisee ends. Goldfish Swim School can communicate these obligations to any future customer or employer of these individuals to protect its rights.

The non-competition aspect restricts individuals from engaging in any competitive business during their relationship with the franchisee and for two years after its termination. This includes not diverting business or customers from the Goldfish Swim School. After the relationship ends, individuals are restricted from involvement with a competitive business within a 25-mile radius of the franchisee's swim school or any other Goldfish Swim School, unless they obtain express written consent from the company. These restrictions apply across the United States during the term of the relationship.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.