After termination of a relationship with a Goldfish Swim School franchisee, what geographic area is covered by the non-compete agreement regarding operating a Competitive Business?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- b) During the term of the Franchise Agreement, Franchisee shall not, directly or indirectly, for itself 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, Franchisee shall not, directly or indirectly, for itself 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 the 2025 Goldfish Swim School Franchise Disclosure Document, after the termination of the Franchise Agreement, a franchisee is restricted from involvement with a Competitive Business for a period of two years. This restriction applies within (a) a twenty-five (25) mile radius of the location of the franchisee's Franchised Swim School or within the franchisee's territory as defined in the Franchise Agreement, whichever area is larger, or (b) within a twenty-five (25) mile radius of any other Goldfish Swim School that exists at the time of termination or expiration. This non-compete clause is in effect regardless of the reason for the termination of the agreement.
This means that a former Goldfish Swim School franchisee cannot own, manage, operate, or provide services to a competing swim school business within these specified geographic boundaries. The restrictions also apply to any individual with a legal or beneficial interest in the franchise, as well as officers, directors, executives, designated managers, on-site general managers, or members of the professional management staff.
The purpose of these restrictions is to protect Goldfish Swim School's trade secrets, confidential information, and investment in franchisee training. It also aims to prevent franchisees from using the knowledge and experience gained during their time with Goldfish Swim School to unfairly compete against the brand or other franchisees in the system.
Prospective franchisees should carefully consider the implications of these non-compete clauses, as they could significantly limit their business opportunities in the swim school industry for two years after leaving the Goldfish Swim School system. It is important to understand the exact boundaries of the territory and the locations of other Goldfish Swim Schools to fully grasp the scope of the restriction.