Under what circumstances does Goldfish Swim School have the option to purchase the real estate?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ng lease | 96,122 | 94,277 | |
EXHIBIT 7 TO THE FRANCHISE AGREEMENT
REAL ESTATE OPTION TO PURCHASE
| THIS AGREEMENT is entered into between Goldfish Swim School Franchising, LLC, | |
|---|---|
| a Michigan limited liability company, located at 2701 Industrial Row Drive, Troy, MI 48084 | |
| (hereinafter referred to as "Goldfish") and located at | |
| (hereinafter referred to as "Franchisee"). | |
| WHEREAS, Franchisee and Goldfish have entered into a Franchise Agreement by which | |
| Franchisee acquired the right to establish and operate a "Goldfish Swim School®" using the | |
| Marks and Goldfish's System as those terms are defined in the Franchise Agreement, which | |
| Agreement is dated the day of, 20 (hereinafter referred to as | |
| the "Franchise Agreement"); |
WHEREAS, the Franchise Agreement requires that Goldfish approve the location for the Franchise Store to be established pursuant to the above referenced Franchise Agreement, that approval being conditioned upon the execution of this Real Estate Option to Purchase in the event Franchisee owns or controls the real estate;
WHEREAS, Franchisee seeks Goldfish's approval for particular real estate.
NOW THEREFORE, it is hereby agreed as follows:
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- Option. Franchisee hereby grants to Goldfish the option to purchase the real estate described in Exhibit "A" (and hereinafter referred to as the "Real Estate") upon the expiration without renewal or termination of the Franchise Agreement. Any transfer, renewal, extension, or amendment of the Franchise Agreement shall not affect this Option Agreement unless expressly provided. The terms of the Option rights are as follows:
- A. Exercise of Option. Within fifteen (15) days following the termination or expiration without renewal of the Franchise Agreement as provided for in the Franchise Agreement, Goldfish may notify Franchisee in writing of its intention to exercise this option to purchase the Real Estate, and which notice shall constitute an agreement to purchase the Real Estate conditioned upon Goldfish obtaining any necessary financing and the Real Estate being inspected for environmental law compliance.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, Goldfish Swim School has an option to purchase the real estate under specific conditions related to the Franchise Agreement. Goldfish Swim School requires that the franchisee grant them a Real Estate Option to Purchase if the franchisee owns or controls the real estate for the franchise location. This is a condition for Goldfish Swim School's approval of the location.
The option allows Goldfish Swim School to purchase the real estate upon the expiration or termination without renewal of the Franchise Agreement. Any transfer, renewal, extension, or amendment of the Franchise Agreement does not affect this option unless expressly provided. To exercise this option, Goldfish Swim School must notify the franchisee in writing within fifteen (15) days following the termination or expiration without renewal of the Franchise Agreement. This notice constitutes an agreement to purchase, conditioned on Goldfish Swim School obtaining financing and completing environmental compliance inspections. The closing of the sale must occur within one hundred twenty (120) days after establishing the real estate's fair market value, unless both parties agree to a later date.
The FDD states that Goldfish Swim School and the franchisee will attempt to agree on a fair price for the real estate. If they fail to agree within thirty (30) days of Goldfish Swim School exercising its option, Goldfish Swim School will select and pay for a qualified appraiser to determine the fair market value. The franchisee then has ten (10) days after receiving the appraisal to either accept or reject it in writing. If Goldfish Swim School exercises its option to acquire the real estate, they also have the option to purchase all or some of the assets used in the Goldfish Swim School's operation at fair market value and have the immediate right to occupy the premises, requiring the franchisee to vacate.