Under what circumstances can the Goldfish Swim School agreement be altered or amended?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ce litigation in Indiana for any cause of action under Indiana law.
- Section 23.7 is amended to provide that arbitration between Franchisor and Franchisee, shall be conducted at a mutually agreed upon location.
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- Each provision of this Addendum shall be effective only to the extent that the jurisdictional requirements of the Indiana Law applicable to the provisions are met independently of this Addendum. To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of said Franchise Agreement or exhibits or attachments thereto, the terms of this Addendum shall govern.
Goldfish Swim School Franchising LLC: IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this
Addendum and understands and consents to be bound by all of its terms.
FOR THE STATE OF MINNESOTA
| Years Ending | ||
|---|---|---|
| December 31 | Amount | |
| 2025 | $129,704 |
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- In recognition of the Minnesota Franchise Law, Minn. Stat., Chapter 80C, Sections 80C.01 through 80C.22, and the Rules and Regulations promulgated pursuant thereto by the Minnesota Commission of Securities, Minnesota Rule 2860.4400, et. seq., the parties to the attached Franchise Agreement agree as follows:
- Sections 4 and 16 are amended to add that with respect to Franchises governed by Minnesota Law, Franchisor will comply with the Minnesota Franchise Law that requires, except in certain specified cases, that Franchisee be given 90 days notice of termination (with 60 days to cure) and 180 days notice of non-renewal of the Agreement.
- Sections 4.2.9, 5.2, 5.5, 8.3, 18.2.3 and 18.2.6 do not provide for a prospective general release of any claims against Franchisor that may be subject to the Minnesota Franchise Law. Minn. Rule 2860.4400D prohibits a franchisor from requiring a franchisee to assent to a general release.
- Section 6 is amended to add that as required by Minnesota Franchise Act, Goldfish Swim School Franchising LLC will reimburse you for any costs incurred by you in the defense of your right to use the Marks, so long as you were using the Marks in the manner authorized by Goldfish Swim School Franchising LLC, and so long as Goldfish Swim School Franchising LLC is timely notified of the claim and is given the right to manage the defense of the claim including the right to compromise, settle or otherwise resolve the claim, and to determine whether to appeal a final determination of the claim.
- Section 23.4 is amended to state that any claim concerning the Franchised Swim School or this Agreement or any related agreement will be barred unless an arbitration or an action for a claim that cannot be the subject of arbitration is commenced within three (3) years from the date on which Franchisee or Franchisor knew or should have known, in the exercise of reasonable diligence, of the facts giving rise to or the claim.
- Section 23.5 is deleted in its entirety.
- Section 23.6 is deleted in its entirety.
- Minn. Stat. §80C.21 and Minn. Rule 2860.4400J prohibit Franchisor from requiring litigation to be conducted outside Minnesota. In addition, nothing in the Disclosure Document or Franchise Agreement can abrogate or reduce any of Franchisee's rights as provided for in Minnesota Statutes,
Chapter 80C, or Franchisee's rights to any procedure, forum or remedies provided for by the laws of the jurisdiction. However, Franchisor may seek such relief through the court system with or without a bond as determined by a court. Minn. Rule Part 2860.4400J prohibits Franchisee from waving its rights to a jury trial or waiving its rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction, or consenting to liquidated damages, termination penalties or judgment notes. To the extent that the Franchise Agreement requires Franchisee to waive these rights, the Franchise Agreement will be considered amended to the extent necessary to comply with the Minnesota Rule.
- Each provision of this Addendum shall be effective only to the extent that the jurisdictional requirements of the Minnesota Franchise Law applicable to the provisions are met independently of this Addendum. To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of said Franchise Agreement or exhibits or attachments thereto, the terms of this Addendum shall govern.
IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum and understands and consents to be bound by all of its terms.
| Long-term | |
|---|---|
| obligations under | $1,480,870 |
| leases |
FOR THE STATE OF NORTH DAKOTA
| Cash paid for interest and income taxes was as follows: | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||||
| Interest | $ | - $ | - $ | 13,267 | ||
| Income taxes | 268,934 | 264,960 | 184,686 | |||
| Significant noncash investing and financing activities are as follows: | 2024 | 2023 | 2022 | |||
| Accrued member distributions | $ | - $ | 41,052 $ | - | ||
| Advances to member | 235,807 | - | - | |||
| Member distributions used to settle related party | ||||||
| advance | 163,222 | 192,688 | 856,443 | |||
| Lease liability arising from adoption of ASC 842 | - | - | 1,869,195 | - 1. The North Dakota Securities Commission requires that certain provisions contained in the Agreement be amended to be consistent with North Dakota Law, including the North Dakota Franchise Investment Law, North Dakota Century Code Addendum, Chapter 51-19, Sections 51- 19-01 et seq. Such provisions in the Agreement are hereby amended as follows: |
Under Sections 4.2.9, 5.2, 5.5, 8.3, 18.2.3 and 18.2.6, the execution of a general release upon renewal, transfer, or as a condition of receipt of a refund of a portion of the Franchise Fee following termination, shall be inapplicable to Franchises operating under the North Dakota Franchise Investment Law to the extent that such a release excludes claims arising under the North Dakota Franchise Investment Law.
Section 7 is amended to add that the prevailing party in any enforcement action is entitled to recover all costs and expenses including attorneys' fees.
Sections 17.1.5 and 17.1.6 are amended to state:
- If Franchisor or Franchisee is required to enforce this Agreement via judicial or arbitration proceedings, the prevailing party shall be entitled to reimbursement of its costs, including reasonable accounting and legal fees in connection with such proceeding.
Section 17.2 is amended to add that covenants not to compete upon termination or expiration of the Franchise Agreement are generally unenforceable in the State of North Dakota except in limited instances as provided by law.
Section 17.6 is deleted.
Section 23.1 is amended to state that in the event of a conflict of laws, North Dakota Law shall prevail.
Section 23.2 is amended to add that any action may be brought in the appropriate state or federal court in North Dakota with respect to claims under North Dakota Law.
Section 23.4 is amended to state that the statute of limitations under North Dakota Law shall apply.
Sections 23.5 and 23.6 are deleted in their entireties.
Section 23.7 is amended to state that arbitration involving a Franchise purchased in North Dakota must be held either in a location mutually agreed upon prior to the arbitration, or if the parties cannot agree on a location, the arbitrator will determine the location.
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- Each provision of this Addendum shall be effective only to the extent that the jurisdictional requirements of the North Dakota Law applicable to the provisions are met independently of this Addendum. To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of said Franchise Agreement or exhibits or attachments thereto, the terms of this Addendum shall govern.
IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum and understands and consents to be bound by all of its terms.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, the franchise agreement can be altered or amended under specific circumstances, primarily in recognition of state franchise laws. For franchisees in Minnesota, Indiana, Illinois, Rhode Island and Wisconsin, the FDD includes addenda that modify certain sections of the standard franchise agreement to comply with those states' franchise laws.
These amendments address various aspects of the franchise relationship. For example, the Minnesota addendum modifies sections related to termination notice, non-renewal, general releases, defense of trademark rights, and limitations on claims. The Indiana addendum includes modifications related to unlawful unilateral termination, post-term non-compete covenants, franchisee indemnification of the franchisor, and governing law. The Illinois addendum modifies sections related to termination, non-renewal, franchisee rights, governing law, and jurisdiction. The Rhode Island addendum addresses general releases and restrictions on jurisdiction or venue.
These state-specific addenda take precedence over the original terms of the franchise agreement to the extent they are inconsistent. This ensures that the Goldfish Swim School franchise agreement adheres to the legal requirements of each state in which franchises are offered. Prospective franchisees should carefully review the addendum for their specific state to understand how the standard agreement is modified and what specific rights and obligations they have under their state's laws.