After termination of the Goldfish Swim School franchise agreement, what is the duration of the non-compete period?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
n, Franchisee shall not, directly or indirectly, for itself 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 the Franchise Agreement, Franchisee shall not, directly or indirectly, for itself 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, Franchisee shall not, directly or indirectly, for itself 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.
- c) During the term of the Franchise Agreement and for a period of two (2) years thereafter, regardless of the cause of termination, Franchisee shall not, directly or indirectly, solicit or otherwise attempt to induce or influence business associate or customer of Franchisee, Company or any other Goldfish Swim School to compete against, or terminate or modify his, her or its business relationship with, Franchisee, Company or any other Goldfish Swim School.
5. Reasonableness of Restrictions
The Franchisee Parties acknowledge that each of the terms set forth herein, including the restrictive covenants, are fair and reasonable and are reasonably required for the protection of Franchisee, Company, and Company's Trade Secrets and other Confidential Information, the Company's business system, network of franchises and trade and service marks, and the Franchisee Parties waive any right to challenge these restrictions as being overly broad, unreasonable or otherwise unenforceable. If, however, a court of competent jurisdiction determines that any such restriction is unreasonable or unenforceable, then the Franchisee Parties shall submit to the reduction of any such activity, time period or geographic restriction necessary to enable the court to enforce such restrictions to the fullest extent permitted under applicable law. It is the desire and intent of the parties that the provisions of this Agreement shall be enforced to the fullest extent permissible under the laws and public policies applied in any jurisdiction where enforcement is sought.
6. Relief for Breaches of Confidentiality and Non-Competition
Individual further acknowledges that an actual or threatened violation of the covenants contained in this Agreement will cause Franchisee and Company immediate and irreparable harm, damage and injury that cannot be fully compensated for by an award of damages or other remedies at law. Accordingly, Franchisee and Company shall be entitled, as a matter of right, to an injunction from any court of competent jurisdiction restraining any further violation by Individual of this Agreement without any requirement to show any actual damage or to post any bond or other security. Such right to an injunction shall be cumulative and in addition to, and not in limitation of, any other rights and remedies that Franchisee and Company may have at law or in equity.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, both the franchisee and individual owners are subject to non-compete clauses for a period of two years after the termination or expiration of the franchise agreement. This restriction applies regardless of the reason for termination.
For the franchisee, this means they cannot directly or indirectly engage in any competitive business within a 25-mile radius of their former Goldfish Swim School location or within their Area of Primary Responsibility, whichever is greater. They are also restricted from operating within a 25-mile radius of any other Goldfish Swim School in existence at the time of termination or expiration. Additionally, franchisees are prohibited from soliciting or attempting to influence any customer or business associate of Goldfish Swim School to terminate or modify their relationship with the company or to compete against it.
Individual owners face similar restrictions. They cannot divert or attempt to divert any business or customer of the franchisee to any competitive business. They are also barred from engaging in, rendering services to, operating, or owning any competitive business within the specified geographic areas. These restrictions are designed to protect Goldfish Swim School's market share, trade secrets, and customer relationships after a franchise agreement ends.
These non-compete terms are typical in franchising to protect the brand and prevent franchisees from using the franchisor's knowledge and resources to directly compete after the agreement ends. A prospective franchisee should carefully consider the geographic scope and duration of these restrictions to understand their obligations if they decide to leave the Goldfish Swim School system.