What happens to Goldfish Swim School Brand Fund revenue not spent in a fiscal year?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Any Brand Fund revenue not spent in the fiscal year will be either used to eliminate a previous year's Brand Fund deficiency or carried over to the next fiscal year and spent on behalf of the System. In the future, if the Brand Fund spends more in any fiscal year than it receives, we intend to recover such expenditures in the following fiscal year. We do not use any portion of the Brand Fund for the sole solicitation of new franchisees.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–42)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, any revenue remaining in the Brand Fund at the end of the fiscal year will be used to address any prior year's deficiency in the Brand Fund or will be carried over into the next fiscal year to be spent on behalf of the Goldfish Swim School system.
Goldfish Swim School intends for the Brand Fund to be perpetual but retains the right to terminate it if necessary. If the Brand Fund is terminated, all contributions and earnings will be used for advertising and promotional purposes, or the franchisees will receive a pro-rata share of the remaining funds.
During the fiscal year 2024, Goldfish Swim School's affiliate collected $7,107,549 in revenue for the Brand Fund and spent $7,133,074. This indicates that the Brand Fund can operate at a deficit, and the franchisor has a plan to recover such expenditures in the following fiscal year.