What is the transfer fee required by Goldfish Swim School when transferring an Area Development Agreement?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Area Development Agreement | Summary |
|---|---|---|
| l. Franchisor's approval of transfer by franchisee | Section 8 | You may not transfer your interest in any of the items listed in (k) above without our prior written consent. |
| m. Conditions for franchisor approval of transfer | Section 8 | No event of Default; Developer and each Principal execute a general release; Developer and each Principal remain liable for the performance of the transferee; Transferee must assume all of your obligations, make all required representations and warranties, execute any and all documents required by us; Transferee and all transferee owners must satisfy our standards for new Developers; Transferee execute the then current form of Area Development Agreement and all other documents we deem necessary, Transferee and Transferee's Representative and Operator s |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 54–64)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Goldfish Swim School requires a $10,000 transfer fee when a developer seeks to transfer their Area Development Agreement. This fee is one of several conditions that must be met for Goldfish Swim School to approve the transfer.
In addition to the transfer fee, Goldfish Swim School stipulates other conditions that must be satisfied. These include ensuring there is no existing event of default, obtaining a general release from the developer and each principal, and ensuring the developer and each principal remain liable for the transferee's performance. The transferee must also assume all obligations, make required representations and warranties, and execute all necessary documents as required by Goldfish Swim School.
Furthermore, the transferee and their owners must meet Goldfish Swim School's standards for new developers, execute the current Area Development Agreement, and ensure the transferee, their representative, and operator fulfill all training obligations. These stringent requirements ensure that any new developer is fully qualified and committed to maintaining the standards of the Goldfish Swim School franchise system. The transfer fee and associated conditions are typical in franchising, as franchisors seek to maintain control over who enters their system and to ensure a smooth transition.