After termination of Individual's relationship with Franchisee, 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 the 2025 Goldfish Swim School FDD, the Franchisee Parties' obligations regarding confidential information as outlined in paragraph 2(a) of the agreement remain in effect even after the termination of an individual's relationship with the franchisee. This obligation applies regardless of the reason for termination, whether it is voluntary or involuntary.
This means that any individual associated with the franchisee, such as employees or managers, is still bound by the confidentiality agreement even if they no longer work for the Goldfish Swim School franchise. They cannot disclose or use any trade secrets or confidential information they gained during their time with the franchise. This is a standard practice in franchising to protect the franchisor's proprietary information and maintain a competitive advantage.
Goldfish Swim School is also entitled to inform future customers or employers of these confidentiality obligations to protect its rights. This measure ensures that confidential information remains protected, even if a former franchisee party becomes involved with another Goldfish Swim School as an investor, partner, or in another capacity.