Under what conditions can Goldfish Swim School terminate the Franchise Agreement with cause?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or Other Agreement | Summary |
|---|---|---|
| h. "Cause" defined non-curable defaults | Section 16.2 | We have the right to terminate the Franchise Agreement without giving you an opportunity to cure if you: fail to timely select an approved site for or establish, equip and begin operations of the franchised swim school; fail to have your Designated Manager or on-site general manager satisfactorily complete training; made a material misrepresentation or omission in the application for the franchise; are convicted of or plead no contest to a felony or other crime or offense likely to affect the reputation of either party or the franchised swim school; after notice to cure, fail to refrain from activities, behavior or conduct likely to adversely affect the reputation of either party or the franchised swim school; use the Confidential Brand Standards Manual, trade secrets or other confidential information in an unauthorized manner; if required, fail to have your owners (and members of their immediate families and households), officers, directors, managers, executives, employees and professional staff, and other individuals having access to trade secrets or other confidential information sign nondisclosure and non competition agreements or, if requested, fail to provide us with copies of all signed nondisclosure and non competition agreements; abandon the franchised swim school for 5 or more consecutive days; surrender or transfer control of the franchised swim school in an unauthorized manner; fail to maintain the franchised swim school under the supervision of an approved Designated Manager or on-site general manager following your death or disability; submit reports on 3 or more separate occasions understating any amounts due by more than 3%; are adjudicated bankrupt, insolvent or make a general assignment for the benefit of creditors; misuse or make unauthorized use of the Marks; fail on 3 or more occasions within any 12 months to submit reports or records or to pay any fees due us or any affiliate; continue to viol |
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, there are several conditions under which the Franchise Agreement can be terminated with cause, without providing an opportunity to cure the default. These non-curable defaults include failing to select an approved site or begin operations, failing to have the Designated Manager or on-site general manager satisfactorily complete training, or making a material misrepresentation or omission in the franchise application.
Further reasons for termination without opportunity to cure include conviction of a felony or any crime that could negatively impact the reputation of Goldfish Swim School, unauthorized use of the Confidential Brand Standards Manual, trade secrets, or other confidential information. Also, if the franchisee fails to have owners, officers, directors, managers, executives, employees and professional staff sign non-disclosure and non-competition agreements, or fails to provide copies of these agreements if requested, Goldfish Swim School can terminate the agreement.
Additional causes for termination involve abandoning the swim school for five or more consecutive days, unauthorized transfer of control, failure to maintain supervision by an approved manager after death or disability, submitting reports understating amounts due by more than 3% on three or more occasions, bankruptcy or insolvency, misuse of the Marks, and failure to submit reports or pay fees on three or more occasions within a 12-month period.
These termination conditions highlight the importance of operational compliance, financial accuracy, and protection of Goldfish Swim School's brand and confidential information. Prospective franchisees should carefully review these conditions to understand their obligations and the potential consequences of non-compliance.