What happens to the contributions and earnings if Goldfish Swim School terminates the Brand Fund?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
We intend for the Brand Fund to be perpetual, but we have the right to terminate it if necessary. We will not terminate the Brand Fund until all contributions and earnings have been used for advertising and promotional purposes or we have returned your pro rata share.
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, 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 must be used for advertising and promotional purposes, or Goldfish Swim School will return a pro rata share to the franchisees.
This means that if Goldfish Swim School decides to end the Brand Fund, franchisees are entitled to receive their portion of the remaining funds, based on their contributions. This protects franchisees by ensuring that the money they contributed is either used for its intended purpose (advertising and promotion) or returned to them.
It is important to note that Goldfish Swim School does not specify how the pro rata share will be calculated or distributed, so prospective franchisees should seek clarification on this process. Understanding the specific procedures for fund termination and pro rata distribution can help franchisees assess the financial implications and risks associated with the Brand Fund.