Are there any restrictions on my ability to advertise Goldfish Swim School outside my territory?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
You are not restricted from selling goods and services using the System to customers residing outside your designated area. There are no restrictions on your ability to advertise outside your territory, including engaging in mail order solicitations, direct mail programs, telemarketing, internet or television solicitation programs or use any other advertising media.
We reserve all rights not expressly granted in the Franchise Agreement or Area Development Agreement. For example, we or our affiliates may own, operate or authorize others to own or operate a Goldfish Swim School® outside your designated area and may operate other kinds of businesses under other marks within your designated area. We and our affiliates may conduct or authorize others to conduct any form of business at any location selling any type of product or service not offered under the Trademarks. We reserve the right to establish other channels of distribution for the sale of services and products including, without limitation, Internet sales or other direct marketing sales using our principal trademark or any trademarks other than our principal trademark. These activities may compete with your franchised swim school. We will not compensate you for any sales made in your area through an alternate channel of distribution. Unless you are advertising cooperatively with another franchisee, you may not advertise in any media primarily circulated within another franchisee's area of primary responsibility. With these reservations, you may face competition from other franchisees, from outlets that we own or from other channels of distribution or competitive brands that we control.
Source: Item 12 — TERRITORY (FDD pages 42–44)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, franchisees generally have the freedom to advertise outside their designated territory. Goldfish Swim School places no restrictions on advertising outside of a franchisee's territory, including through methods like mail order, direct mail, telemarketing, internet, or television solicitations. This allows franchisees to reach a broader customer base and potentially attract customers from neighboring areas. However, franchisees may not advertise in media primarily circulated within another franchisee's area of primary responsibility unless they are advertising cooperatively.
Despite this general freedom, Goldfish Swim School retains significant control over internet marketing. Franchisees are restricted from establishing an online presence or marketing on the internet or social media without the franchisor's consent. Goldfish Swim School maintains a website with information about the system and individual franchise locations, but all information posted about a franchisee's location must be approved by the franchisor. The franchisor also reserves the sole right to market on the internet, including using websites, domain names, search engines, and other online marketing tools.
This means that while franchisees can use various advertising methods to reach customers outside their territory, their ability to leverage the internet and social media for marketing is subject to the franchisor's approval and control. Franchisees should be aware of these restrictions and work closely with Goldfish Swim School to ensure their advertising efforts comply with the franchise agreement. Additionally, franchisees should be aware of the possibility of competition from other franchisees, company-owned outlets, or other channels of distribution, and that Goldfish Swim School will not compensate franchisees for sales made in their area through alternate channels.