After termination, what geographic areas are covered by the non-compete agreement for a Goldfish Swim School franchise?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
17.2 Post-Termination Covenant Not to Compete
- 17.2.1 Franchisee acknowledges that the restrictive covenants contained in this Section and in Section 7 are fair and reasonable and are justifiably required for purposes including, but not limited to, the following:
- 17.2.1.1 to protect the Trade Secrets and other Confidential Information of Franchisor;
- 17.2.1.2 to induce Franchisor to grant a Franchise to Franchisee; and
- 17.2.1.3 to protect Franchisor against its costs in training Franchisee and its officers, directors, executives, professional staff, Designated Managers, and on-site general manager if different from the Designated Manager.
- 17.2.2 Except as otherwise approved in writing by Franchisor, neither Franchisee, nor any holder of a legal or beneficial interest in Franchisee, nor any officer, director, executive, Designated Manager, on-site general manager if different from the Designated Manager, or member of the professional management staff of Franchisee, shall, for a period of two (2) years after the expiration or termination of this Agreement, regardless of the cause of termination, either directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity:
- 17.2.2.1 own an interest in, manage, operate or provide services to any Competitive Business located or operating (a) within a twenty-five (25) mile radius of the Approved Location or within the Area of Primary Responsibility (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; or
- 17.2.2.2 solicit or otherwise attempt to induce or influence any customer or other business associate of Franchisor to terminate or modify his, her or its business relationship with Franchisor or to compete against Franchisor.
- 17.2.3 In furtherance of this Section, Franchisor has the right to require certain individuals to execute standard form nondisclosure or non-competition agreements in a form the same as or similar to the Nondisclosure and Non-Competition Agreement attached as Exhibit 2 or as provided to Franchisee in the Confidential Brand Standards Manual.
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 franchise agreement expires or terminates, the franchisee is restricted from involvement with any Competitive Business for two years. Unless Goldfish Swim School provides written approval otherwise, the franchisee, or anyone with interest in the franchise, including officers, directors, executives, managers, cannot own, manage, operate, or provide services to a Competitive Business.
The geographic scope of this restriction includes two possibilities: (a) within a 25-mile radius of the Approved Location or within the Area of Primary Responsibility, whichever area is larger, or (b) within a 25-mile radius of any other Goldfish Swim School location that exists at the time of termination or expiration.
Additionally, the franchisee is prohibited from soliciting or attempting to influence any customer or business associate of Goldfish Swim School to terminate or modify their relationship with the franchisor or to compete against them. Goldfish Swim School also has the right to require certain individuals to sign standard non-disclosure or non-competition agreements.