After termination of the Franchise Agreement between Franchisee and the Company, do the Franchisee Parties' obligations regarding Confidential Information under paragraph 2(a) still apply to Goldfish Swim School?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- b) The Franchisee Parties' obligations under paragraph 2(a) of this Agreement shall continue in effect i) after termination of Individual's relationship with Franchisee, regardless of the reason or reasons for termination, and whether such termination is voluntary or involuntary, and ii) after the termination of the Franchise Agreement between Franchisee and the Company, regardless of the reason or reasons for termination and whether
such termination is voluntary or involuntary. Company is entitled to communicate the Franchisee Parties' obligations under this Agreement to any future customer or employer to the extent deemed necessary by Company for protection of its rights hereunder and regardless of whether the Franchisee Parties or any of their respective affiliates or assigns becomes an investor, partner, joint venturer, broker, distributor or the like in a Goldfish Swim School.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, the Franchisee Parties' obligations regarding confidential information as outlined in paragraph 2(a) of the Franchise Agreement remain in effect even after the termination of the Franchise Agreement between the franchisee and Goldfish Swim School. This obligation applies regardless of the reason for termination, whether it is voluntary or involuntary.
This means that even after a franchisee's relationship with Goldfish Swim School ends, they are still legally bound to protect the company's trade secrets and confidential information. This includes not communicating, divulging, or permitting access to such information to any other party. The franchisee must continue to take necessary steps to ensure the confidentiality and security of this information, adhering to Goldfish Swim School's established policies and procedures.
Goldfish Swim School retains the right to inform future customers or employers of the franchisee's confidentiality obligations, as deemed necessary to protect its rights. This is a standard practice in franchising to safeguard proprietary information and maintain a competitive advantage. The continuation of these obligations ensures that sensitive business information remains protected, even after the franchise relationship has ended, which is vital for maintaining the integrity and competitiveness of the Goldfish Swim School system.