Which section of Exhibit C to the Goldfish Swim School Disclosure Document covers the failure to open a Goldfish Swim School?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
5.7 Failure to Open
Should Franchisee fail to commence operations of the Approved Location for the Franchised Swim School within the Development Period, Franchisor has the right to terminate this Agreement. If this Agreement is terminated pursuant to this Section 5.7, Franchisor shall retain the entire Franchise Fee and Real Estate Fee paid by Franchisee. The Franchise Fee and Real Estate Fee retained shall be specifically understood and agreed by the parties to be in consideration of the services provided, time expended, work performed, and other efforts of Franchisor up to the date of Franchisee's failure to timely commence operations of the Franchised Swim School and shall not be construed as nor considered to be a penalty. Franchisor specifically reserves all rights and remedies available for Franchisee's breach of the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, Section 5.7 of Exhibit C, titled "Failure to Open," addresses the repercussions if a franchisee fails to commence operations of the Approved Location within the Development Period.
If a Goldfish Swim School franchisee fails to open their swim school within the specified Development Period, Goldfish Swim School has the right to terminate the Franchise Agreement. In the event of termination under this section, Goldfish Swim School will retain the entire Franchise Fee and Real Estate Fee paid by the franchisee.
The Franchise Disclosure Document clarifies that these retained fees are in consideration for the services provided, time expended, work performed, and other efforts undertaken by Goldfish Swim School up to the date of the franchisee's failure to commence operations. The document explicitly states that these retained fees should not be construed as a penalty. Furthermore, Goldfish Swim School reserves all rights and remedies available for the franchisee's breach of the Franchise Agreement.