What costs can a Goldfish Swim School franchisee's Brand Fund Contributions be used for?
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)
According to the 2025 Goldfish Swim School FDD, franchisee Brand Fund Contributions can be used to cover the costs of consumer advertising. These costs may include producing, maintaining, administering, and directing advertising campaigns across various media such as television, radio, internet, magazines, newspapers, and direct mail. The Brand Fund can also be used for public relations activities, developing and hosting websites, employing advertising agencies, and providing promotional brochures and marketing materials to franchisees. Goldfish Swim School may also use the Brand Fund to reimburse itself for employment expenses related to staff managing the Brand Fund.
The FDD specifies that all Brand Fund Contributions must be kept in a separate account from Goldfish Swim School's general operating funds. The only exception is that the Brand Fund can cover reasonable costs and expenses incurred by Goldfish Swim School for activities related to administering the Brand Fund itself. Goldfish Swim School aims to spend all Brand Fund contributions on marketing programs and promotions within the fiscal year the contributions are made.
Any excess amounts remaining in the Brand Fund at the end of the fiscal year will be used first in the following fiscal year. These expenditures will include any interest or earnings of the Brand Fund, followed by prior year contributions, and then current contributions. Although Goldfish Swim School intends for the Brand Fund to be perpetual, it retains the right to terminate the Brand Fund at any time. However, the Brand Fund cannot be terminated until all contributions have been spent on advertising and promotional purposes or returned to franchisees on a pro rata basis, based on their total contributions.