What right does Goldfish Swim School have regarding nondisclosure and non-competition agreements with individuals associated with the franchisee?

According to the 2025 Goldfish Swim School FDD, Goldfish Swim School has the right to require certain individuals associated with the franchisee to sign nondisclosure and non-competition agreements. These individuals include anyone holding a legal or beneficial interest in the franchisee, their immediate family or household members, and any officer, director, executive, manager, or member of the professional staff of the franchisee.

The nondisclosure agreements ensure that these individuals protect Goldfish Swim School's trade secrets and confidential information, both during their relationship with the franchisee and even after termination of that relationship or the franchise agreement itself. Goldfish Swim School can communicate these obligations to future employers or customers of these individuals to protect its rights.

The non-competition agreements prevent these individuals from engaging in any competitive business activities that could harm the Goldfish Swim School brand. This includes soliciting customers, diverting business, or working for a competing business within a specified radius of a Goldfish Swim School location. These restrictions apply during the term of their relationship with the franchisee and for a period of two years after termination. Goldfish Swim School can enforce these agreements to protect its market share and brand reputation.