After termination of an individual's relationship with a Goldfish Swim School franchisee, what is the geographic restriction regarding involvement with a competitive business?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- b) During the term of Individual's relationship with Franchisee, Individual shall not, 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, carry on, be engaged in or take part in, render services to, operate, or own or share in the earnings of any Competitive Business anywhere within the United States without the express written consent of Company, and for a period of two (2) years thereafter, regardless of the cause of termination, Individual shall not, 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, carry on, be engaged in or take part in, render services to, operate, or own or share in the earnings of any Competitive Business (a) within a twenty-five (25) mile radius of the location of Franchisee's Franchised Swim School or within Franchisee's territory as provided in the Franchise Agreement (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, without the express written consent of Company.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, an individual's involvement with a competitive business is restricted following the termination of their relationship with a franchisee. For two years after termination, the individual cannot engage in a competitive business within a 25-mile radius of the franchisee's swim school or within the franchisee's territory, whichever is greater. This restriction also applies within a 25-mile radius of any other Goldfish Swim School existing at the time of termination.
This non-compete agreement is in place to protect Goldfish Swim School's market and trade secrets. It prevents former employees or owners from using their knowledge of the Goldfish Swim School system to directly compete against existing franchise locations. The geographic restriction ensures that individuals cannot immediately set up a competing swim school nearby and take away customers or staff.
The franchisee must obtain express written consent from Goldfish Swim School to engage in a competitive business within the restricted area. This consent is not guaranteed and would likely depend on the specific circumstances and the potential impact on existing Goldfish Swim School locations. Franchisees should carefully consider these restrictions before signing the agreement, as they could limit future career options in the swim school or related industries.