Can the Big Blue Swim School Brand Fund be used to advertise locally?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
for that Calculation Period.
We will direct all programs the Brand Fund finances, with sole control over and ownership of all creative and business aspects of the Fund's activities. The Brand Fund may pay for, among other things, preparing, producing, and placing video, audio, and written materials, digital marketing, and Social Media; developing, maintaining, and administering one or more System Websites; administering national, regional, and multi-regional marketing and advertising programs, including purchasing trade journal, direct mail, and other media advertising and using advertising, promotion, and marketing agencies and other advisors to provide assistance; implementing and supporting franchisees' local market introduction programs; establishing regional and national promotions and partnerships and hiring spokespersons to promote the BIG BLUE Swim School brand; supporting public relations, market research, and other advertising, promotion, marketing, and brand-related activities; creating and implementing customersatisfaction surveys; organizing and hosting franchisee conferences, conventions, and meetings; and supporting and hosting charitable or nonprofit events and community-based activities.
The Brand Fund may advertise locally, regionally, and/or nationally in printed and on other tangible materials, on radio or television, and/or on the Internet, as we think best. We and/or an outside regional or national advertising agency will produce all advertising and marketing. The Brand Fund periodically may give you sample Marketing Materials at no cost. We may sell you multiple copies of Marketing Materials at our direct production costs, plus any related shipping, handling, and storage charges.
We will account for the Brand Fund separately from our other funds (although we need not keep Brand Fund contributions in a separate bank account) and will not use the Brand Fund for any of our general operating expenses. However, the Brand Fund may reimburse us and our affiliates for the reasonable salaries and benefits of personnel who manage and administer, or
otherwise provide assistance or services to, the Brand Fund; the Brand Fund's administrative costs; travel-related expenses of personnel while they are on Brand Fund business; meeting costs; overhead relating to Brand Fund business; and other expenses we and our affiliates incur administering or directing the Brand Fund and its programs, including conducting market research, preparing Marketing Materials, collecting and accounting for Brand Fund contributions, paying taxes due on Brand Fund contributions we receive; and any other costs or expenses we incur operating or as a consequence of the Fund. We will not use the Brand Fund specifically to develop materials and programs to solicit franchisees. However, media, materials, and programs prepared using Brand Fund contributions may describe our franchise program, reference the availability of franchises and related information, and process franchise leads. Of the Brand Fund's 2024 expenditures, 18% was spent on digital marketing and public relations agencies, 7% was spent on search engine optimization, 2% was spent on social and creative, 10% was spent on marketing software, 10% was spent on strategic projects, and 53% was spent on overhead.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–51)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School FDD, the Brand Fund can be used to support franchisees' local market introduction programs. The Brand Fund is primarily intended to maximize brand recognition, increase customer traffic to Big Blue Swim Schools, and enhance the overall brand. While the franchisor aims to develop marketing materials and programs that benefit all locations, there's no guarantee that the Brand Fund expenditures in any specific area will be proportional to the contributions from Big Blue Swim Schools operating in that area. In other words, the Brand Fund is not required to spend any specific amount in a franchisee's market area.
Franchisees are required to spend 6% of their school's quarterly gross revenue on approved local marketing materials and programs. Franchisees must also collaborate with Big Blue Swim School to prepare a local marketing plan. However, contributions to the Brand Fund do not count towards this local marketing spending requirement.
Big Blue Swim School retains control over which expenses qualify towards the local marketing spending requirement. Generally, the franchisee's Brand Fund contributions, price discounts, permanent on-premises signs, personnel salaries, administrative costs, transportation vehicles, and employee incentive programs do not count toward the local marketing requirement. If a franchisee fails to meet the local marketing spending requirement, Big Blue Swim School has the right to demand that the franchisee contribute the shortfall to the Brand Fund or require the franchisee to pay the Local Marketing Spending Requirement, which Big Blue Swim School will then spend for the franchisee in their market.