After the termination of a Goldfish Swim School franchise agreement, do the Franchisee Parties' confidentiality obligations continue?
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 the 2025 Goldfish Swim School Franchise Disclosure Document, the confidentiality obligations of the Franchisee Parties continue even after the termination of the Franchise Agreement. These obligations remain in effect regardless of the reason for termination, whether it is voluntary or involuntary.
This means that after the franchise agreement ends, the franchisee and related parties are still legally bound to protect Goldfish Swim School's trade secrets and confidential information. This includes business practices, copyrighted materials, trademarks, customer data, advertising materials, swim programs, training manuals, and other proprietary information. The franchisor, Goldfish Swim School, is also entitled to communicate these confidentiality obligations to any future customer or employer of the Franchisee Parties to protect its rights.
This extended confidentiality requirement is a standard practice in franchising to safeguard the franchisor's intellectual property and competitive advantage. Prospective Goldfish Swim School franchisees should understand that this obligation extends beyond the term of the agreement, and any breach could result in legal action.