What section in the Franchise Agreement outlines the site selection and acquisition/lease obligations for a Goldfish Swim School franchise?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Select the Location of the Franchised Swim School
We do not generally own the premises and lease it to franchisees. If you have a potential site for the franchised swim school, you may propose the location for our consideration. We may consent to the site after we have evaluated it. If you do not have a proposed site, we will designate a geographic area in which you must locate the franchised swim school and we will furnish you with our general site selection criteria. We may provide sites in your designated area to review. You are solely responsible for locating and obtaining a site that meets our standards and criteria and that is acceptable to us. (Sections 2.3 and 5.1) You must use a real estate broker that we approve. We reserve the right to designate a Designated Supplier for real estate acquisition services.
The general site selection and evaluation criteria or factors that we consider in approving your site includes the condition of the premises, demographics of the surrounding area including population size of children under the age of 12, proximity to other Goldfish Swim Schools, proximity to competitive businesses, lease requirements, traffic patterns, visibility, vehicular and pedestrian access, proximity to major roads, available parking and overall suitability. We will provide you with written notice of our approval or disapproval of any proposed site within a reasonable time (usually 30 days) after receiving all requested information. If we cannot agree with you on a suitable site for the franchised swim school within 180 days after you sign the Franchise Agreement, we may terminate the Franchise Agreement. (Sections 5.1 and 5.2).
F. Typical Length of Time Before Operation
We estimate that the typical length of time between the signing of the Franchise Agreement and the opening of the franchise is 600 days. Factors that may affect your beginning operations include ability to secure permits, zoning and local ordinances, weather conditions and delays in installation of equipment and fixtures, satisfactory completion of our training programs
and your Designated Manager's or on-site general manager's (if different from the Designated Manager) successful completion of his/her CPR, first aid and lifeguard certifications. You must execute a lease or a binding purchase agreement for a site location within 180 days after signing the Area Development Agreement and/or Franchise Agreement, begin construction of your approved location within 330 days after signing the Area Development Agreement and/or Franchise Agreement, and open your franchised swim school and be operational within 600 days after signing the Franchise Agreement. (Sections 5.3, 5.4, 5.5, and 5.6). If you execute an Area Development Agreement, you are required to open additional franchised swim schools pursuant to the Development Schedule.
G. Training
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 30–32)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, Item 11, Section E discusses the methods used to select the location of the franchised swim school. It indicates that franchisees may propose a location for consideration, and Goldfish Swim School may consent to the site after evaluation. If a franchisee does not have a proposed site, Goldfish Swim School will designate a geographic area in which the franchisee must locate.
The FDD states that Goldfish Swim School will furnish general site selection criteria. The franchisee is solely responsible for locating and obtaining a site that meets Goldfish Swim School's standards and criteria and is acceptable to them. Franchisees must use a real estate broker that Goldfish Swim School approves, and Goldfish Swim School reserves the right to designate a supplier for real estate acquisition services.
The general site selection and evaluation criteria include the condition of the premises, demographics of the surrounding area (including the population size of children under 12), proximity to other Goldfish Swim Schools and competitive businesses, lease requirements, traffic patterns, visibility, vehicular and pedestrian access, proximity to major roads, available parking, and overall suitability. Goldfish Swim School will provide written notice of approval or disapproval of any proposed site within a reasonable time, usually 30 days after receiving all requested information. If Goldfish Swim School cannot agree with the franchisee on a suitable site within 180 days after the Franchise Agreement is signed, Goldfish Swim School may terminate the Franchise Agreement.
Item 22, Section 3 also refers to location selection within the Development Schedule of the Area Development Agreement. It states that the Developer must select a Location that Goldfish Swim School approves consistent with the applicable Franchise Agreement so that each and every Swim school is OPEN AND OPERATING pursuant to the Development Schedule. Consent to any Location or execution of a Franchise Agreement does not waive, extend or modify the Development Schedule.