Under the Goldfish Swim School Unlimited Guaranty, what courts are disputes heard in?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's right to seek injunctive relief will not affect the parties' waiver of jury trial and covenant to arbitrate all disputes in accordance with Section 23.7. Franchisor's rights herein shall include pursuing injunctive relief through arbitration or in state or federal court.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, the franchisor has the right to pursue injunctive relief through arbitration or in state or federal court. This means that Goldfish Swim School can seek court orders to stop a franchisee from breaching the Franchise Agreement, and they can do so either through the court system or through arbitration, giving them flexibility in how they enforce the agreement.
However, the FDD also includes addenda for specific states that modify these terms. For example, for franchisees in Illinois, the Franchise Agreement will be governed by Illinois law, and jurisdiction and venue for court litigations must be in Illinois. This means that any provision in the Franchise Agreement that designates jurisdiction or venue outside of Illinois is void.
Similarly, for franchisees in Rhode Island, any terms restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of the laws of another state are void with respect to a claim otherwise enforceable under The Rhode Island Franchise Investment Act. Therefore, prospective franchisees should carefully review the addendum for their specific state to understand the specific legal requirements and restrictions that may apply to dispute resolution and venue.