Does Big Blue Swim School have sole control over the Brand Fund programs?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–51)
What This Means (2025 FDD)
According to the 2025 FDD, Big Blue Swim School maintains sole control over the Brand Fund. Specifically, Big Blue Swim School directs all programs the Brand Fund finances and has sole control over and ownership of all creative and business aspects of the Fund's activities. This includes preparing and placing marketing materials, digital marketing, social media, website administration, and advertising programs.
This means that franchisees contribute to the Brand Fund, but Big Blue Swim School decides how those funds are spent. 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. While Big Blue Swim School aims to benefit all locations, there's no guarantee that spending in any specific area will be proportionate to contributions from Big Blue Swim Schools in that area.
Big Blue Swim School also has the right to defer, reduce, suspend, or terminate Brand Fund contributions and operations. If the Brand Fund is terminated, the remaining balance will either be spent on permitted programs or distributed to franchisees, Big Blue Swim School, and its affiliates in proportion to their contributions over the preceding 12 months. This gives Big Blue Swim School significant flexibility in managing the Brand Fund and its resources.
It is important for prospective franchisees to understand that the Brand Fund is not a trust, and Big Blue Swim School does not owe franchisees any fiduciary obligations regarding the fund. Big Blue Swim School can spend more or less than the contributions in any fiscal year, borrow to cover deficits, or invest any surplus for future use. This arrangement is typical in franchising, where the franchisor manages marketing funds to benefit the brand as a whole.