What were the brand fund fees from Goldfish Swim School franchisees in 2022?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.3.2 Franchisee's Brand Fund Contributions may be used to meet the costs of, or to reimburse Franchisor for its costs (including, without limitation, Franchisor's employment expenses for staff to manage the Brand Fund) of, producing, maintaining, administering and directing consumer advertising (including, without limitation, the cost of preparing and conducting television, radio, Internet, magazine, newspaper, and direct mail advertising campaigns and other public relations activities; developing and/or hosting an Internet web page or site and similar activities; employing advertising agencies to assist therein; and providing promotional brochures and other marketing materials to franchisees).
All Brand Fund Contributions shall be maintained in a separate account from the monies of Franchisor and shall not be used to defray any of Franchisor's general operating expenses, except for such reasonable costs and expenses, if any, that Franchisor may incur in activities reasonably related to the administration of the Brand Fund.
- 11.3.3 Franchisor shall endeavor to spend all Brand Fund Contributions on marketing programs and promotions during Franchisor's fiscal year within which such contributions are made.
If excess amounts remain in any Brand Fund at the end of such fiscal year, all expenditures in the following fiscal year(s) shall be made first out of such excess amounts, including any interest or other earnings of the Brand Fund, and next out of prior year contributions and then out of current contributions.
- 11.3.4 Although Franchisor intends the Brand Fund to be of perpetual duration, Franchisor has the right to terminate the Brand Fund at any time.
The Brand Fund shall not be terminated, however, until all Brand Fund Contributions have been expended for advertising and promotional purposes or returned to Franchisee and other franchisees on a pro rata basis based on total Brand Fund Contributions made in the aggregate by each franchisee.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the FDD does not state the specific brand fund fees collected from Goldfish Swim School franchisees in 2022. However, it does outline how the Brand Fund contributions are managed and utilized.
The document explains that franchisee Brand Fund Contributions are used to cover the costs of consumer advertising, including television, radio, internet, magazine, newspaper, and direct mail campaigns, as well as public relations activities and promotional materials. These contributions are kept in a separate account from the franchisor's general operating funds and are primarily intended for marketing programs and promotions during the fiscal year in which they are collected.
The FDD indicates that Goldfish Swim School may spend excess amounts from previous fiscal years before using current contributions. While the franchisor intends for the Brand Fund to be perpetual, it retains the right to terminate the fund at any time, with any remaining funds being distributed to franchisees based on their contributions. Prospective franchisees should inquire directly with the franchisor to obtain specific figures on brand fund contributions and expenditures for particular years to gain a clearer understanding of how these funds are managed and what benefits franchisees can expect from them.