What is the purpose of the Brand Fund maintained by Big Blue Swim School?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ts and duties specified here.
The Brand Fund's principal purposes are to maximize recognition of the Marks, increase patronage of BIG BLUE Swim Schools, and enhance, promote, and protect the BIG BLUE Swim School brand and franchise system. Although we will try to use the Brand Fund in the aggregate to develop and implement Marketing Materials and programs benefiting all BIG BLUE Swim Schools, we need not ensure that Brand Fund expenditures in or affecting any geographic area are proportionate or equivalent to Brand Fund contributions by BIG BLUE Swim Schools operating in that geographic area or that any BIG BLUE Swim School benefits directly or in proportion to its Brand Fund contribution from the development of Marketing Materials or the implementation of programs. (In other words, the Brand Fund need not spend any specific amount in your market area.) We have the right, but no obligation, to use collection agents and institute legal proceedings at the Brand Fund's expense to collect unpaid Brand Fund contributions. We also may forgive, waive, settle, and compromise all claims by or against the Brand Fund. We assume no other direct or indirect liability or obligation to you for collecting amounts due to, maintaining, directing, or administering the Brand Fund.
We have the right at any time to defer or reduce the Brand Fund contributions of any BIG BLUE Swim School franchisee and, upon 30 days' prior written notice to you, to reduce or suspend Brand Fund contributions and operations for one or more periods of any length and to terminate (and, if terminated, reinstate) the Brand Fund. If we terminate the Brand Fund, we will either (i) spend the remaining Fund balance on permitted programs and expenditures or (ii) distribute all unspent funds to our then-existing franchisees, and to us and our affiliates, in proportion to their and our respective Brand Fund contributions during the preceding 12 months.
Local Marketing
You must spend 6% of the School's quarterly Gross Revenue on approved Marketing Materials and programs for the School. You must help us prepare for you a local marketing plan for the Local Marketing Spending Requirement. (Franchise Agreement – Section 13.D)
We have the right to determine which expenses count or do not count toward your Local Marketing Spending Requirement. Generally, Brand Fund contributions, price discounts or reductions you provide as a promotion, permanent on-premises signs, lighting, personnel salaries, administrative costs, transportation vehicles (even if they display the Marks), and employeeincentive programs do not count. If you do not spend (or prove that you spent) the Local Marketing Spending Requirement, we have the right, among other rights, to require you to contribute the shortfall to the Brand Fund. We have the right to require you to pay us the Local Marketing Spending Requirement, which we will then spend for you in your market for the materials and activities described above.
Approval of Marketing
All Marketing Materials must be legal and not misleading and conform to our policies. To protect the goodwill accumulated in the "BIG BLUE Swim School" name and other Marks, at least 30 days before using them, you must send us samples or proofs of all Marketing Materials that we did not prepare or already approve or that we prepared or approved but you want to change in any way. If we do not approve those Marketing Materials in writing within 30 days after we receive them, they are deemed disapproved for use. You may not use any Marketing Materials we have not approved or have disapproved. We have the right upon 30 days' prior written notice to require you to stop using any previously-approved Marketing Materials. (Franchise Agreement – Section 13.C)
Advertising Councils
There currently are no franchisee advertising councils advising us on advertising and marketing policies and programs. However, we have the right to form, change, dissolve, or merge any franchisee advertising council.
Advertising Cooperatives
There currently are no advertising cooperatives. However, we have the right to designate a geographic area for an advertising cooperative (a "Cooperative").
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–51)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, the Brand Fund is established to enhance, promote, and protect the Big Blue Swim School brand and franchise system. The principal purposes of the Brand Fund are to maximize recognition of the Marks and increase patronage of Big Blue Swim Schools. Franchisees are required to contribute to the Brand Fund, with the contribution currently set at 2% of the School's Gross Revenue, but it can be up to 3%.
Big Blue Swim School has sole control over the Brand Fund's activities and directs all programs it finances. The Brand Fund may be used for various marketing and advertising activities, including preparing and placing video, audio, and written materials, digital marketing, and social media. It also covers the costs of developing and maintaining System Websites, administering marketing programs, purchasing media advertising, using advertising agencies, implementing local market introduction programs, establishing promotions and partnerships, hiring spokespersons, supporting public relations and market research, creating customer satisfaction surveys, and organizing franchisee conferences and events.
Big Blue Swim School clarifies that the Brand Fund is not a trust and that they do not owe franchisees any fiduciary obligations related to the fund's maintenance or administration. The Brand Fund isn't obligated to spend money proportionally in any specific geographic area relative to contributions from that area. Big Blue Swim School can defer, reduce, suspend, or even terminate the Brand Fund, and if terminated, the remaining balance will be spent on permitted programs or distributed to franchisees and the franchisor based on their contributions over the prior 12 months.
Prospective franchisees should note that Big Blue Swim School has significant discretion in how the Brand Fund is managed and spent. While the aim is to benefit all Big Blue Swim Schools, there is no guarantee that expenditures will directly correlate with individual franchisee contributions or local market needs. Franchisees are also required to spend 6% of their quarterly Gross Revenue on local marketing, separate from the Brand Fund contributions, providing an additional layer of marketing investment at the local level.