How are Brand Fund Contributions for Goldfish Swim School made?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor. The submission of advertising materials to Franchisor for approval shall not affect Franchisee's right to determine the prices at which Franchisee sells products or provides services. Franchisee is not restricted from selling goods and services using the Franchise System to customers residing outside of the Designated Area or Area of Primary Responsibility. There are no restrictions on your ability to advertise outside your Designated Area or Area of Primary Responsibility, including engaging in mail order solicitations, direct mail programs, telemarketing, internet or television solicitation programs or use any other advertising media.
11.3 Brand Fund
Through an affiliate of Franchisor, Franchisor has established and administers a System-wide marketing, advertising and promotion fund to assist in Franchisor's regional and national advertising ("Brand Fund"). Franchisee shall be required to contribute monthly to the Brand Fund in an amount specified by Franchisor and which Franchisor may adjust from time to time ("Brand Fund Contribution") commencing on the earlier of the date that Franchisee opens for business to the public under section 5.6.1 of this Agreement or on the expiration of the Development Period as defined herein. Franchisee shall pay to Franchisor a Brand Fund Contribution equal to the greater of Four Hundred Fifty Dollars ($450) or three percent (3%) of Gross Sales (we currently collect 2%) for the preceding month for the ninety (90) day period following the earlier of the date that Franchisee opens for business to the public under section 5.6.1 of this Agreement or on the expiration of the Development Period as defined herein, and the greater of One Thousand Three Hundred Dollars ($1,300) or three percent (3%) of Gross Sales (we currently collect 2%) for the preceding month thereafter. If the Brand Fund Contribution is based on a percentage of Gross Sales, Franchisor currently collects 2% of Gross Sales for the Brand Fund Contribution and reserves the right to increase the Brand Fund Contribution, as limited by this section, by notice to Franchisee through the Brand Standards Manual. Brand Fund Contributions shall be made at the time and in the manner provided for Royalty F
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, franchisees are required to contribute monthly to the Brand Fund, which is used for system-wide marketing, advertising, and promotion. The amount of the Brand Fund Contribution is determined by Goldfish Swim School and may be adjusted over time. The contribution starts on the earlier of when the franchisee opens for business or when the Development Period expires.
Initially, for the first 90 days, the Brand Fund Contribution is the greater of $450 or 3% of Gross Sales (though currently, Goldfish Swim School collects 2%). After this initial period, the contribution increases to the greater of $1,300 or 3% of Gross Sales (again, currently collected at 2%). Goldfish Swim School will provide at least 30 days' notice before changing the Brand Fund Contribution requirements. These contributions are to be made at the same time and manner as Royalty Fees.
The Brand Fund is managed by Goldfish Swim School or its designee, who has sole control over the marketing programs, creative concepts, materials, and media used. While Goldfish Swim School aims to spend all contributions within the fiscal year, any excess amounts are carried over and used in subsequent years. Franchisees should also note that Goldfish Swim School does not guarantee any direct or pro rata benefit from the Brand Fund expenditures and retains the right to terminate the Brand Fund, although any remaining funds must be used for advertising or returned to franchisees on a pro rata basis.