Under what circumstances is a Goldfish Swim School franchisee required to indemnify the franchisor?

According to the 2025 Goldfish Swim School Franchise Disclosure Document, the circumstances under which a franchisee must indemnify the franchisor are modified by Indiana law. Specifically, if a Goldfish Swim School franchisee in Indiana relies on procedures or products required by the franchisor and uses them as instructed, the franchisee will not be required to indemnify Goldfish Swim School for any resulting liability.

This modification is crucial for prospective franchisees in Indiana because it alters the standard indemnification clause found in many franchise agreements. Typically, indemnification clauses require the franchisee to protect the franchisor from losses or liabilities arising from the franchisee's operation of the business. However, this Indiana-specific amendment shifts the responsibility back to Goldfish Swim School if the liability stems from the franchisee's proper use of the franchisor's mandated procedures or products.

For a potential Goldfish Swim School franchisee in Indiana, this provides a degree of protection. It means that if they follow the franchisor's instructions and utilize the required systems and products correctly, they are less likely to be held responsible for unforeseen liabilities. This could cover situations where a specific teaching method leads to an injury or a required product causes damage, provided the franchisee adhered to Goldfish Swim School's guidelines.

It is important for prospective franchisees to understand the implications of this clause and how it interacts with other sections of the franchise agreement. They should seek legal counsel to fully grasp their rights and obligations under Indiana law and to ensure they are aware of the specific procedures and products covered by this indemnification exception.