Who is responsible for the annual maintenance and repairs of the Computer System at a Goldfish Swim School franchise?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Any required expenditure for changes or upgrades to the System shall be in addition to expenditures for repairs and maintenance as required in Section 13.2. Franchisee shall be required to make any and all improvements or modifications whenever such are required by law, regulation, agency decision or court order.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Goldfish Swim School franchisees are responsible for expenditures related to changes or upgrades to the system, including computer systems. The franchisee bears the sole cost and expense for these changes, additions, or modifications required by Goldfish Swim School. These expenses are in addition to the general repairs and maintenance outlined in Section 13.2 of the franchise agreement. This means that if Goldfish Swim School updates its required computer hardware or software, the franchisee must pay for those updates.
This requirement has significant financial implications for prospective franchisees. Unlike some franchise systems where the franchisor covers certain technology upgrades, Goldfish Swim School places the full financial burden on the franchisee. This could involve substantial, unplanned costs if the system requires frequent or expensive updates. Franchisees need to factor in these potential technology-related expenses when assessing the overall cost of investment and ongoing operational costs.
Furthermore, the franchisee must adopt and use any changes or additions to the system as if they were part of the original agreement. This gives Goldfish Swim School considerable control over the technology used within the franchise and ensures uniformity across all locations. However, it also means franchisees have limited say in technology decisions and must comply with any mandated changes, regardless of their individual preferences or existing systems. Franchisees should clarify the typical frequency and cost of computer system upgrades with Goldfish Swim School to better prepare for these expenses.