After termination, is a Goldfish Swim School franchisee prohibited from soliciting customers of the franchisor?

According to the 2025 Goldfish Swim School Franchise Disclosure Document, a franchisee is restricted from soliciting customers after the termination of the franchise agreement. Specifically, for a period of two years after termination, regardless of the reason for termination, the franchisee cannot directly or indirectly solicit or attempt to influence any business associate or customer of the franchisee, Goldfish Swim School, or any other Goldfish Swim School. This includes attempts to persuade these parties to compete against, terminate, or modify their business relationship with the aforementioned entities. This restriction is designed to protect the existing customer base and business relationships of the Goldfish Swim School system.

This non-solicitation clause has significant implications for a franchisee who leaves the Goldfish Swim School system. It limits their ability to start a competing business and immediately draw customers from their former franchise. The franchisee must avoid any actions that could be interpreted as actively seeking to move customers or business associates away from the Goldfish Swim School brand. This restriction applies within a defined timeframe, providing some eventual freedom to re-enter the market, but it initially constrains competitive activities.

Such post-termination restrictions are common in franchising to protect the brand's goodwill and customer relationships. The two-year period is a typical duration for these types of non-solicitation clauses. Prospective franchisees should carefully consider these limitations and how they might affect their future business plans if they decide to exit the Goldfish Swim School system. Understanding the scope and duration of these restrictions is crucial for making an informed decision about investing in a Goldfish Swim School franchise.