Under what conditions will Goldfish Swim School approve the transfer of 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 Goldfish Swim School's 2025 Franchise Disclosure Document, a franchisee needs to meet several conditions to get approval for transferring their Area Development Agreement. Goldfish Swim School requires that no event of default has occurred. The developer and each principal involved must execute a general release, and they both remain liable for the transferee's performance.
The transferee must assume all of the developer's obligations, make all required representations and warranties, and execute all documents that Goldfish Swim School requires. The transferee and all transferee owners must meet Goldfish Swim School's standards for new developers. The transferee must also execute the then-current form of the Area Development Agreement and any other documents deemed necessary by Goldfish Swim School.
Furthermore, the transferee, their representative, and operator need to fulfill all training obligations. Finally, the franchisee must pay a transfer fee of $10,000 to Goldfish Swim School. These conditions ensure that any new developer meets the standards and obligations set by Goldfish Swim School, maintaining the integrity and consistency of the franchise system.