Does Goldfish Swim School guarantee that a franchisee will benefit directly from Brand Fund expenditures?

According to the 2025 Goldfish Swim School FDD, the franchisor does not guarantee that any franchisee will directly benefit, or receive a pro rata share of benefits, from the Brand Fund expenditures. These marketing programs funded by the Brand Fund can be local, regional, or system-wide, and Goldfish Swim School does not guarantee the success or effectiveness of any specific marketing program. This means that while franchisees are required to contribute to the Brand Fund, there is no assurance that these contributions will result in a direct or measurable benefit for their specific location.

Franchisee contributions to the Brand Fund are used to cover the costs of advertising and marketing efforts, including television, radio, internet, magazine, newspaper, and direct mail campaigns, as well as public relations activities and promotional materials. These funds are kept separate from Goldfish Swim School's general operating expenses, except for reasonable costs associated with 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. Any excess funds remaining at the end of the fiscal year will be used first in the following year's expenditures, including any interest or earnings from the Brand Fund.

While Goldfish Swim School intends for the Brand Fund to be perpetual, it retains the right to terminate the fund at any time. However, the Brand Fund cannot be terminated until all contributions have been used for advertising and promotional purposes or returned to franchisees on a pro rata basis, based on their total contributions. Each Goldfish Swim School operated by the franchisor or its affiliates contributes to the Brand Fund at the same rate as franchisees, ensuring that company-owned locations also participate in and support the marketing efforts funded by the Brand Fund. An annual accounting of the Brand Fund's operation is prepared and available to franchisees upon request, and Goldfish Swim School has the right to have the Brand Fund reviewed or audited by an independent certified public accountant at the Brand Fund's expense.

It is important for prospective franchisees to understand that the Brand Fund is not a trust, and Goldfish Swim School assumes no fiduciary duty in administering it. Franchisees should recognize that contributing to the Brand Fund does not guarantee specific, measurable returns for their individual franchise. Instead, the fund supports broader marketing initiatives intended to benefit the Goldfish Swim School system as a whole.