Does Goldfish Swim School have the right to increase the minimum liability protection requirement in the future?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
s including inventory, furniture, fixtures, equipment, supplies and other property used in the operation of the Franchised Swim School and all tenants improvements and betterments on a 100% replacement cost basis without coinsurance. Franchisee's property insurance policy shall include coverage for fire, vandalism and malicious mischief and must have coverage limits of at least full replacement cost;
- 15.1.2 workers' compensation insurance that complies with the statutory requirements of the state in which the Franchised Swim School is located and employer liability coverage with a minimum limit of FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) or, if higher, the statutory minimum limit as required by state law;
- 15.1.3 comprehensive general liability insurance against claims for bodily and personal injury, death and property damage caused by, or occurring in conjunction with, the operation of the Franchised Swim School, or Franchisee's conduct of business pursuant to this
Agreement, with a minimum liability coverage of ONE MILLION DOLLARS ($1,000,000.00) per occurrence and TWO MILLION DOLLARS ($2,000,000.00) in the aggregate or, if higher, the statutory minimum limit required by state law, including professional liability for non-bodily injury and sexual molestation and child abuse coverage. Such coverage shall also include contractual liability insurance for the indemnification obligations of this agreement; Franchisor shall be named as an additional named insured on a primary and noncontributory basis;
- 15.1.4 business interruption insurance in amounts and with terms acceptable to Franchisor including loss of income and extra expense on a 12-month actual loss sustained basis without coinsurance;
- 15.1.5 automobile liability insurance for owned or hired and non-owned auto, with a combined single limit of at least ONE MILLION DOLLARS ($1,000,000.00) or, if higher, the statutory minimum limit required by state law;
- 15.1.6 an umbrella with a minimum limit amount of $2,000,000;
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, franchisees are required to maintain comprehensive general liability insurance. This insurance must cover claims for bodily and personal injury, death, and property damage related to the operation of the swim school or the franchisee's business conduct under the Franchise Agreement. The minimum liability coverage required is ONE MILLION DOLLARS ($1,000,000.00) per occurrence and TWO MILLION DOLLARS ($2,000,000.00) in the aggregate, unless a higher statutory minimum is required by state law. The coverage must also include professional liability for non-bodily injury, as well as sexual molestation and child abuse coverage. Goldfish Swim School must be named as an additional insured on a primary and noncontributory basis, and the policy must include contractual liability insurance for the indemnification obligations outlined in the agreement.
While the FDD specifies the initial minimum liability coverage, it also indicates that these requirements are subject to change. Goldfish Swim School retains the right to modify the System from time to time, which includes modifications to the Confidential Brand Standards Manual. Since insurance requirements are typically detailed in the Brand Standards Manual, Goldfish Swim School could potentially increase the minimum liability coverage required in the future. Franchisees are obligated to comply with all requirements, specifications, standards, operating procedures, and rules set forth in the Franchise Agreement, the Confidential Brand Standards Manual, or other communications from Goldfish Swim School.
Therefore, prospective franchisees should be aware that the initial insurance requirements are not necessarily fixed. Goldfish Swim School has the discretion to increase these requirements as part of ongoing modifications to the System and the Brand Standards Manual. Franchisees are responsible for meeting any new insurance requirements at their sole cost and expense. It is important for potential franchisees to factor in the possibility of increased insurance costs when evaluating the financial feasibility of a Goldfish Swim School franchise.