What rights does Goldfish Swim School reserve that are not expressly granted in the Franchise Agreement?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve all rights not expressly granted in the Franchise Agreement or Area Development Agreement. For example, we or our affiliates may own, operate or authorize others to own or operate a Goldfish Swim School® outside your designated area and may operate other kinds of businesses under other marks within your designated area. We and our affiliates may conduct or authorize others to conduct any form of business at any location selling any type of product or service not offered under the Trademarks. We reserve the right to establish other channels of distribution for the sale of services and products including, without limitation, Internet sales or other direct marketing sales using our principal trademark or any trademarks other than our principal trademark. These activities may compete with your franchised swim school. We will not compensate you for any sales made in your area through an alternate channel of distribution. Unless you are advertising cooperatively with another franchisee, you may not advertise in any media primarily circulated within another franchisee's area of primary responsibility. With these reservations, you may face competition from other franchisees, from outlets that we own or from other channels of distribution or competitive brands that we control.
Source: Item 12 — TERRITORY (FDD pages 42–44)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, Goldfish Swim School retains all rights not explicitly granted to the franchisee in the Franchise Agreement or Area Development Agreement. This reservation of rights has several practical implications for franchisees. Goldfish Swim School or its affiliates can operate or authorize others to operate Goldfish Swim School locations outside the franchisee's designated area. They can also operate other types of businesses under different trademarks within the franchisee's area, potentially creating competition. Goldfish Swim School and its affiliates can conduct any form of business at any location, selling any type of product or service not offered under the Goldfish Swim School trademarks.
Goldfish Swim School reserves the right to establish other channels of distribution for services and products, including internet sales or other direct marketing sales, using their principal trademark or any other trademarks. These activities may compete with the franchisee's swim school, and the franchisee will not be compensated for any sales made in their area through these alternate channels. Unless advertising cooperatively with another franchisee, a franchisee cannot advertise in media primarily circulated within another franchisee's area of primary responsibility.
In addition, Goldfish Swim School maintains control over its internet presence. Goldfish Swim School retains the sole right to advertise or use the Goldfish Swim School marks on the internet, including websites, domain names, and search engine optimization. Goldfish Swim School also has independent access to the franchisee's computer system and data and can retrieve and use this data as they deem necessary, without contractual limitations. These reserved rights highlight the importance of understanding the scope and limitations of the rights granted to franchisees in the Franchise Agreement and Area Development Agreement.