Is it mandatory for all Goldfish Swim School franchisees to contribute to the System-wide Brand Fund?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
dvertisements. (Section 11.2; See also ITEM 9.o.)
To assist in our system-wide marketing, we have developed a System-wide Brand Fund, administered by our affiliate, and you must contribute to the fund. Presently, we or our affiliate collect the greater of $450 per month or up to 3% (we currently charge 2%) of gross sales for the 90 day period following the earlier of the date you open for business or 600 days after you sign a Franchise Agreement, and the greater of $1,300 per month or up to 3% (we currently charge 2%) of gross sales thereafter. Each franchisee is required to make this Brand Fund contribution and all franchisees contribute at the same rate. The Brand Fund Contribution is collected in the same manner as Royalty. (Section 11.3; See also ITEM 9.o.)
Our affiliate will administer the Brand Fund as follows:
- (a) Through our affiliate, we will control the creative concepts and the materials and media to be used, and we will determine the placement and allocation of advertisements.
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 FDD, contributing to the System-wide Brand Fund is mandatory for all franchisees. Each Goldfish Swim School franchisee is required to contribute to the Brand Fund, and all franchisees contribute at the same rate.
The contribution amount is determined based on the franchisee's gross sales. For the first 90 days after opening or 600 days after signing the Franchise Agreement (whichever comes first), franchisees pay the greater of $450 per month or up to 3% (currently charged at 2%) of gross sales. After that initial period, the contribution increases to the greater of $1,300 per month or up to 3% (currently charged at 2%) of gross sales.
The Brand Fund is administered by an affiliate of Goldfish Swim School. These funds are used for system-wide marketing initiatives, including advertising and promotions. The FDD specifies that the Brand Fund revenue will first be used to eliminate any prior year's deficiency, and then any remaining funds will be carried over to the next fiscal year. Goldfish Swim School also states that all Goldfish Swim School locations owned by them or their affiliates will contribute to the Brand Fund on the same basis as required of franchisees.