What section of the Franchise Agreement discusses termination by the Goldfish Swim School franchisee?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or Other Agreement | Summary |
|---|---|---|
| i. Franchisee's obligations on termination/non renewal | Section 17.1 | If the Franchise Agreement is terminated or not renewed, you must: stop operating the franchised swim school; stop using any trade secrets, confidential information, the System and the Marks; if requested, assign your interest in the franchise location to us; cancel or assign to us any assumed names; pay all sums owed to us including damages and costs incurred in enforcing the Franchise Agreement; return the Confidential Brand Standards Manual, trade secrets and all other confidential information; assign your telephone and facsimile numbers to us; comply with the covenants not to compete and any other surviving provisions of the Franchise Agreement. |
| j. Assignment of contract by franchisor | Section 18.1 | There are no restrictions on our right to assign our interest in the Franchise Agreement. |
| k. "Transfer" by franchisee definition | Section 18.2 | "Transfer" includes transfer of an interest in the franchise, the Franchise Agreement, the franchise location or the franchised swim school's assets. |
| l. Franchisor's approval of transfer by franchisee | Section 18.2 | You may not transfer your interest in any of the items listed in (k) above without our prior written consent. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 54–64)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, there is no specific section listed in Item 17 that details the franchisee's right to terminate the agreement. The table summarizes various provisions related to termination, renewal, transfer, and dispute resolution, but it focuses primarily on the franchisor's rights and the franchisee's obligations upon termination or non-renewal.
Specifically, the document outlines Goldfish Swim School's right of first refusal to acquire the franchisee's swim school in Section 19 and their option to purchase the franchisee's assets after termination or expiration in Section 17.4. It also addresses termination due to the death or disability of the franchisee in Section 18.6. The franchisee's obligations upon termination or non-renewal are detailed in Section 17.1, including ceasing operations, discontinuing the use of trade secrets and marks, and fulfilling financial obligations.
Since the excerpt does not explicitly state where the franchisee's termination rights are described, it would be prudent for a potential Goldfish Swim School franchisee to carefully review the full Franchise Agreement and consult with a legal professional. This will help them understand under what conditions and with what consequences they can terminate the agreement. It is important to clarify the circumstances under which a franchisee can terminate, any associated penalties, and the required procedures for doing so to make an informed decision.