After termination or expiration of the Goldfish Swim School franchise agreement, what are franchisees prohibited from doing regarding the brand?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
f Franchisor's rights under this Agreement.
16.4 Right of Franchisor to Discontinue Services to Franchisee
If Franchisee is in breach of any obligation under this Agreement, and Franchisor delivers to Franchisee a notice of termination pursuant to Section 16.2.2, Franchisor has the right to suspend its performance of any of its obligations under this Agreement including, without limitation, the sale or supply of any products or services for which Franchisor is an Approved Supplier to Franchisee, until such time as Franchisee corrects the breach.
17. RIGHTS AND DUTIES UPON EXPIRATION OR TERMINATION
17.1 Actions to be Taken
Except as otherwise provided herein, upon termination or expiration, this Agreement and all rights granted hereunder to Franchisee shall terminate and Franchisee shall:
- 17.1.1 immediately cease to operate the Franchised Swim School and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor;
- 17.1.2 cease to use the Trade Secrets, Confidential Information, the System and the Marks including, without limitation, all signs, slogans, symbols, logos, advertising materials, stationery, forms and any other items which display or are associated with the Marks;
- 17.1.3 take such action as may be necessary to cancel or assign to Franchisor, at Franchisor's option, any assumed name or equivalent registration filed with state, city or county authorities which contains the name "Goldfish Swim School®" or any other Mark, and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement;
- 17.1.4 pay all sums owing to Franchisor and any Affiliate. In the event of termination for any default of Franchisee, such sums shall include, but not be limited to, all damages, costs and expenses, including reasonable attorneys' fees with respect to litigation, arbitration, appellate or bankruptcy proceedings, unpaid Royalty Fees, loss of future Royalty Fee payments incurred by Franchisor as result of any early termination of this Agreement, and any other amounts due to Franchisor or any Affiliate;
- 17.1.5 pay to Franchisor all costs and expenses, including reasonable attorneys' fees, incurred by Franchisor subsequent to the termination or expiration of the Franchise in obtaining injunctive or other relief for the enforcement of any provisions of this Agreement;
- 17.1.6 immediately return to Franchisor the Confidential Brand Standards Manual, Trade Secrets and all other Confidential Information including records, files, instructions, brochures, agreements, disclosure statements and any and all other materials provided by Franchisor to Franchisee relating to the operation of the Franchised Swim School (all of which are acknowledged to be Franchisor's property);
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, after the termination or expiration of the franchise agreement, franchisees face several restrictions. They must immediately stop operating the Franchised Swim School and cannot represent themselves as a current or former franchisee. This prevents any confusion among customers and protects the Goldfish Swim School brand's reputation.
Furthermore, franchisees must cease using any of Goldfish Swim School's trade secrets, confidential information, the system, and the marks, including signs, slogans, logos, and advertising materials. They also need to take necessary actions to cancel or assign any assumed name registrations containing "Goldfish Swim School®" or any other mark back to the franchisor. This ensures that the brand's intellectual property remains protected and that former franchisees do not continue to benefit from the brand's recognition.
Additionally, for a period of two years after the termination or expiration of the Franchise Agreement, franchisees are restricted from engaging in any Competitive Business within a 25-mile radius of their former Goldfish Swim School location or any other existing Goldfish Swim School. They are also prohibited from soliciting or attempting to influence any business associate or customer of Goldfish Swim School to compete against or terminate their relationship with Goldfish Swim School. These non-compete and non-solicitation clauses are designed to protect Goldfish Swim School's market share and customer relationships.