For Goldfish Swim School, what sections govern the transfer limitations mentioned in section A(6)?

According to Goldfish Swim School's 2025 Franchise Disclosure Document, Section 8 and Section 8B(10) of Item 22 (Contracts) govern transfer limitations. Section 8 generally discusses the conditions and procedures for transferring the Area Development Agreement or any interest in it. Section 8B(10) specifically addresses transfer fees, stating that neither the Developer nor a Controlled Entity is required to pay a transfer fee under certain conditions when transferring the agreement to a Controlled Entity. These sections outline the circumstances under which a transfer can occur, the obligations of the parties involved, and any associated fees or requirements.

For a prospective Goldfish Swim School franchisee, understanding these transfer limitations is crucial. It dictates the circumstances under which they can sell, assign, or otherwise transfer their rights and obligations under the Area Development Agreement. The reference to Section 8B(10) clarifies a specific exception regarding transfer fees when the transfer is to a Controlled Entity, which could be a significant financial consideration.

The conditions listed in Section A(6) that must be met for a transfer to a Controlled Entity to occur without a transfer fee include that the Controlled Entity is newly organized and dedicated exclusively to operating the Franchised Swim School, the Developer owns all equity and voting power in the Controlled Entity, all obligations to the Franchisor are satisfied, the Controlled Entity assumes the obligations of the agreement, all holders of interest in the Controlled Entity guarantee the obligations, the ownership certificates are endorsed with transfer restrictions, and all governing documents are furnished to the Franchisor. These stipulations ensure that the Franchisor maintains control over who operates the franchise and that the financial and operational responsibilities are clearly assigned and guaranteed.

Therefore, a potential franchisee should carefully review Section 8 and Section 8B(10) to fully understand the conditions under which they can transfer their franchise, the process for doing so, and any potential costs or requirements associated with the transfer. This knowledge is essential for long-term planning and decision-making related to the franchise.