Under what conditions is a Goldfish Swim School developer prohibited from developing a new location?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
herwise agreed and approved by us, the Swim schools shall refer to Goldfish Swim School® Swim schools operating pursuant to the System.
If the Developer shall close any Location, whether voluntarily or involuntarily, and whether as a result of the loss of possession of the premises, by fire or other casualty, or otherwise, the Developer shall locate and secure a suitable alternative Location or premises approved by us within six (6) months from the loss of possession of the original site, and shall be open for business at the new Location not more than twelve (12) months following the closing of the prior Location, while at the same time maintaining the Development Schedule. If a suitable alternative Location is not secured and opened as hereinabove described or if Developer does not comply with the Development Schedule, this Agreement and the right of the Developer to develop additional Locations under this Agreement shall terminate. The opening of a Location in replacement of another Location under this paragraph shall not satisfy the Developer's obligation to open Locations under this Section 3 of this Agreement.
- C. We make no representation or warranty as to the number of Swim schools that can be operated in the Territory. Developer assumes all cost, liability, expense, risk and responsibility for locating, obtaining, and developing Locations for Swim schools, and for constructing and equipping Swim schools at such Locations.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, there are several conditions under which a developer's right to develop additional locations can be terminated. If a developer closes a location, they have six months to secure a suitable alternative location approved by Goldfish Swim School and twelve months to open for business at the new location, all while maintaining the development schedule. Failure to secure and open a suitable alternative location within these timeframes or failure to comply with the development schedule will result in the termination of the agreement and the right to develop additional locations.
Furthermore, upon any termination or expiration of the Area Development Agreement, the developer cannot develop additional Goldfish Swim School locations in the territory, although they may complete development or operate swim schools under existing franchise agreements. The agreement automatically expires on the date specified for the opening of the last swim school to be opened as per the development schedule.
Finally, a developer may be prohibited from developing a new location if they are in default of the Area Development Agreement, any Franchise Agreement, or any other agreement with Goldfish Swim School or its affiliates. This includes failing to satisfy monetary and material obligations under the Franchise Agreements for all existing swim schools on a timely basis. These stipulations ensure that developers adhere to the agreed-upon development schedule and maintain good standing with the Goldfish Swim School brand.