Is an accounting of the operation of the Brand Fund available to Goldfish Swim School franchisees?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.3.6 An accounting of the operation of the Brand Fund shall be prepared annually and shall be available to Franchisee upon request.
Franchisor retains the right to have
the Brand Fund reviewed or audited and reported on, at the expense of the Brand Fund, by an independent certified public accountant selected by Franchisor.
11.3.7 Franchisee acknowledges that the Brand Fund is not a trust and Franchisor assumes no fiduciary duty in administering the Brand Fund. There is no fiduciary or trust relationship created by Franchisor's or its affiliate's administering the Brand Fund. Franchisor anticipates all franchisees will contribute to the Brand Fund, although there is no prohibition against Franchisor charging higher or lower rates for future franchisees. Franchisor also may forgive, waive, settle, or compromise claims by or against the Brand Fund. Franchisor may defer or reduce a franchisee's contribution based on the peculiarities of a particular territory or circumstance, existing business practices, or other factors that Franchisor deems to be important to the operation of any franchised swim school or the System. If Franchisor terminates the Brand Fund, Franchisor or its affiliate will distribute all unused monies to the contributors in proportion to their respective contributions during a pre-determined period.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, an accounting of the Brand Fund's operation will be prepared annually. This accounting is available to Goldfish Swim School franchisees upon request.
Goldfish Swim School retains the right to have the Brand Fund reviewed or audited by an independent certified public accountant. The expense of this review or audit will be paid by the Brand Fund itself.
The FDD clarifies that the Brand Fund is not a trust, and Goldfish Swim School assumes no fiduciary duty in administering it. While all franchisees are expected to contribute to the Brand Fund, Goldfish Swim School has the flexibility to adjust contribution rates for future franchisees or to defer or reduce a franchisee's contribution based on specific circumstances. If the Brand Fund is terminated, any unused monies will be distributed to the contributors in proportion to their contributions during a pre-determined period.