When does the Brand Fund Contribution obligation begin for a Goldfish Swim School franchisee?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
11.3.5 Each Goldfish Swim School operated by Franchisor or an Affiliate shall make Brand Fund Contributions at the same rate as Goldfish Swim School franchisees.
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)
Based on the 2025 Goldfish Swim School Franchise Disclosure Document, the obligation to make Brand Fund Contributions begins when the franchisee starts operating their Goldfish Swim School. Each Goldfish Swim School, including those operated by the Franchisor or its affiliates, contributes to the Brand Fund at the same rate as franchisees.
The Brand Fund is used for various marketing and advertising activities, such as television, radio, internet, magazine, newspaper, and direct mail campaigns. It also covers the costs of maintaining and administering these activities, including the Franchisor's staff expenses for managing the fund. All Brand Fund Contributions are kept in a separate account and are not used for the Franchisor's general operating expenses, except for costs related to administering the Brand Fund.
Goldfish Swim School aims to spend all Brand Fund Contributions on marketing programs and promotions within the fiscal year they are made. If there are excess amounts at the end of the fiscal year, these will be used first in the following fiscal year's expenditures, including any interest or earnings from the Brand Fund. While the Franchisor intends for the Brand Fund to be perpetual, it reserves the right to terminate it at any time, ensuring that all contributions are either spent on advertising and promotional purposes or returned to franchisees on a pro rata basis.