After the termination of an individual's relationship with a Goldfish Swim School franchisee, for how long is the non-competition agreement in effect?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
a) During the term of Individual's relationship with Franchisee and for a period of two (2) years after the expiration or termination of Individual's relationship with Franchisee, regardless of the cause of expiration or 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, divert or attempt to divert any business or customer of Franchisee to any Competitive Business, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Company's service mark "Goldfish Swim School®" and such other trade names, trademarks, service marks, trade dress, designs, graphics, logos, emblems, insignia, fascia, slogans, drawings and other commercial symbols as Company designates to be used in connection with Goldfish Swim Schools or Company's uniform standards, methods, procedures and specifications for the establishment and operation of Goldfish Swim Schools.
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.
c) During the term of Individual's relationship with Franchisee and for a period of two (2) years thereafter, regardless of the cause of termination, Individual shall not, directly or indirectly, solicit or otherwise attempt to induce or influence business associate or customer of Franchisee, Company or any other Goldfish Swim School to compete against, or terminate or modify his, her or its business relationship with, Franchisee, Company or any other 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, an individual owner is subject to a non-competition agreement both during their relationship with the franchisee and for a period of two years after the relationship ends, regardless of the reason for termination. This prevents the individual from diverting business or customers to a competitive business or performing actions that could harm the goodwill associated with the Goldfish Swim School brand.
Specifically, the individual is prohibited from engaging in or having any involvement with a Competitive Business within the United States during their relationship with the franchisee, without the company's express written consent. For two years after the relationship ends, this restriction applies within a 25-mile radius of the franchisee's swim school location or within the franchisee's territory, whichever is greater. It also extends to a 25-mile radius of any other Goldfish Swim School in existence at the time of termination, again requiring the company's express written consent.
Additionally, for two years post-termination, the individual cannot solicit or attempt to influence any business associate or customer of the franchisee, the company, or any other Goldfish Swim School to compete against or terminate their relationship with these entities. This comprehensive non-competition agreement aims to protect Goldfish Swim School's market position and confidential information by preventing individuals with knowledge of the business from using that knowledge to benefit a competitor.