Is the local advertising expenditure by a Goldfish Swim School franchisee subject to approval?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Local Advertising | 2% of gross sales and if part of an advertising cooperative, no more than 5% of gross sales. | Quarterly | You pay directly to third party vendors, subject to our approval. (Section 11.2) We may require your expenditures to be used in cooperative advertising and such contribution amount is determined by the cooperative, of which you will be a voting member. (Section 11.4) Contributions to the advertising cooperative may exceed this local advertising requirement but in no event be more than 5% of gross sales, and you will receive credit for each dollar contributed to the cooperative toward your local advertising requirement. Goldfish Swim Schools operated by us or our affiliates in an area covered by an Advertising Cooperative will contribute to the Advertising Cooperative on the same basis as comparable franchisees and have the same voting rights as any comparable franchisee. Further information about all advertising programs is included in ITEM 11. |
Source: Item 6 — OTHER FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, a franchisee's local advertising expenditure is subject to approval. The FDD specifies that franchisees pay directly to third-party vendors, but these expenditures are subject to Goldfish Swim School's approval. This means that while franchisees manage the relationships with local advertising vendors, Goldfish Swim School retains the right to ensure that these advertising efforts align with the brand's overall marketing strategy and standards.
In addition to the 2% of gross sales required for local advertising, Goldfish Swim School may require franchisees to participate in cooperative advertising. If a franchisee is part of an advertising cooperative, the total advertising expenditure can be up to 5% of gross sales. Franchisees are voting members of the cooperative, giving them a say in how these funds are used. Contributions to the advertising cooperative count toward the local advertising requirement, providing a mechanism for franchisees to meet their local obligations through a larger, coordinated effort.
Goldfish Swim School also clarifies that corporate-owned or affiliate-owned locations within an area covered by an advertising cooperative will contribute to the cooperative on the same basis as franchisees and have the same voting rights. This ensures that all locations, regardless of ownership, participate equitably in the cooperative advertising efforts. Prospective franchisees should carefully review Item 11 of the FDD for more detailed information about Goldfish Swim School's advertising programs.