factual

During the term of an individual's relationship with a Goldfish Swim School franchisee, what activities are prohibited regarding diverting business or customers to a Competitive Business?

Goldfish_Swim_School Franchise · 2025 FDD

Answer from 2025 FDD Document

  • a) During the term of Individual's relationship with Franchisee and for a period of two (2) years after the expiration or termination of Individual's relationship with Franchisee, regardless of the cause of expiration or termination, Individual shall not, directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, divert or attempt to divert any business or customer of Franchisee to any Competitive Business, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Company's service mark "Goldfish Swim School®" and such other trade names, trademarks, service marks, trade dress, designs, graphics, logos, emblems, insignia, fascia, slogans, drawings and other commercial symbols as Company designates to be used in connection with Goldfish Swim Schools or Company's uniform standards, methods, procedures and specifications for the establishment and operation of Goldfish Swim Schools.

  • b) During the term of Individual's relationship with Franchisee, Individual shall not, directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, carry on, be engaged in or take part in, render services to, operate, or own or share in the earnings of any Competitive Business anywhere within the United States without the express written consent of Company, and for a period of two (2) years thereafter, regardless of the cause of termination, Individual shall not, directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, carry on, be engaged in or take part in, render services to, operate, or own or share in the earnings of any Competitive Business (a) within a twenty-five (25) mile radius of the location of Franchisee's Franchised Swim School or within Franchisee's territory as provided in the Franchise Agreement (whichever is greater), or (b) within a twenty-five (25) mile radius of the location of any other Goldfish Swim School in existence at the time of termination or expiration, without the express written consent of Company.

Source: Item 23 — RECEIPTS (FDD pages 77–389)

What This Means (2025 FDD)

According to the 2025 Goldfish Swim School FDD, during the term of an individual's relationship with a franchisee, the individual is prohibited from diverting or attempting to divert any business or customer of the franchisee to any Competitive Business through direct or indirect inducement. They are also prohibited from performing any act that is injurious or prejudicial to the goodwill associated with Goldfish Swim School's service mark and other commercial symbols.

Furthermore, the individual cannot be engaged in, render services to, operate, or own or share in the earnings of any Competitive Business anywhere within the United States without the express written consent of the company.

These restrictions also extend for a period of two years after the termination or expiration of the individual's relationship with the franchisee. During this time, the individual cannot engage in the aforementioned activities within a 25-mile radius of the franchisee's swim school or within the franchisee's territory, whichever is greater, or within a 25-mile radius of any other Goldfish Swim School in existence at the time of termination or expiration, without express written consent from the company. These non-compete and non-solicitation clauses are typical in franchise agreements to protect the brand and the franchisee's investment.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.