Is a Goldfish Swim School franchisee required to contribute to the Brand Fund?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- 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.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, franchisees are generally expected to contribute to the Brand Fund. Goldfish Swim School anticipates that all franchisees will contribute, and Goldfish Swim School itself, or its affiliates, will contribute to the Brand Fund at the same rate as franchisees.
However, Goldfish Swim School retains the right to charge higher or lower rates for future franchisees, or even to defer or reduce a franchisee's contribution based on specific circumstances. These circumstances could include the peculiarities of a territory, existing business practices, or other factors that Goldfish Swim School deems important to the operation of the franchised swim school or the system.
The Brand Fund is not a trust, and Goldfish Swim School does not assume a fiduciary duty in administering it. 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. Goldfish Swim School endeavors to spend all Brand Fund contributions on marketing programs and promotions during its fiscal year, and any excess amounts will be used in the following fiscal years.