Does Goldfish Swim School have the right of first refusal to acquire a Goldfish Swim School franchised swim school?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or Other Agreement | Summary |
|---|---|---|
| manager if different from the Designated Manager will complete the initial training program before assuming management of the franchised swim school; the transferee has agreed that its swim instructors, the Designated Manager, and the on-site general manager will have obtained CPR, life guard and first aid certifications; and the franchise location is remodeled to the then-current brand standards. | ||
| n. Franchisor's right of first refusal to acquire franchisee's franchised swim school | Section 19 | We may match an offer for your franchised swim school or an ownership interest you propose to sell. |
| o. Franchisor's option to purchase franchisee's franchised swim school | Section 17.4 | Except as described in (n) above, we do not have the right to purchase your franchised swim school; however, during the 30-day period after the termination or expiration of the Franchise Agreement, we have the right to purchase any assets of the franchised swim school for fair market value. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 54–64)
What This Means (2025 FDD)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, Goldfish Swim School does have a right of first refusal. Specifically, Goldfish Swim School has the right to match any offer a franchisee receives for their franchised swim school or for an ownership interest the franchisee proposes to sell.
This right of first refusal means that if a Goldfish Swim School franchisee wants to sell their business, they must first offer Goldfish Swim School the opportunity to buy it on the same terms as any other potential buyer. This gives Goldfish Swim School the ability to control who enters the system and maintain brand consistency.
However, Goldfish Swim School does not have an option to purchase the franchise from a franchisee, except in specific circumstances. During the 30-day period after the termination or expiration of the Franchise Agreement, Goldfish Swim School has the right to purchase any assets of the franchised swim school for fair market value.