Under what condition will Goldfish Swim School charge me for insurance policies?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
wish to purchase. (Section 13.1) |
| Type of Fee | Amount | Due Date | Remarks | |
|---|---|---|---|---|
| Insurance Policies | $1,000 - $3,500 | Upon demand | Amount of unpaid premiums plus our reasonable expenses in obtaining the policies. Payable to us only if you fail to maintain required insurance coverage and we elect to obtain |
Source: Item 6 — OTHER FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, franchisees may be charged for insurance policies under specific circumstances. Goldfish Swim School may elect to obtain insurance coverage for a franchisee who fails to maintain the required insurance coverage.
If Goldfish Swim School obtains insurance on behalf of a franchisee, the franchisee is responsible for paying the amount of unpaid premiums, in addition to the franchisor's reasonable expenses incurred in obtaining the policies. The cost for these insurance policies can range from $1,000 to $3,500.
This condition is further detailed in Section 15.5 of the Franchise Agreement, as referenced in the table. It is crucial for prospective franchisees to fully understand the insurance requirements outlined in the Franchise Agreement to avoid incurring these additional costs. Maintaining the required insurance coverage is essential for compliance and to prevent Goldfish Swim School from obtaining coverage on the franchisee's behalf and passing the expenses on to them.