How often are local advertising fees for a Goldfish Swim School franchise due?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
se Agreement attached as Exhibit C.
| 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, local advertising fees are due quarterly. These fees are structured as 2% of gross sales. However, if a franchisee participates in an advertising cooperative, the fee can be up to 5% of gross sales.
Franchisees pay these local advertising fees directly to third-party vendors, subject to Goldfish Swim School's approval. The document also states that Goldfish Swim School may require franchisees to use these funds in cooperative advertising programs. The contribution amount for cooperative advertising is determined by the cooperative itself, where the franchisee is a voting member.
It's important to note that contributions to the advertising cooperative may exceed the standard 2% local advertising requirement, but they cannot exceed 5% of gross sales. Franchisees receive credit towards their local advertising requirement for every dollar contributed to the cooperative. Goldfish Swim Schools operated by the franchisor or its affiliates in areas covered by an advertising cooperative contribute to the cooperative on the same basis as comparable franchisees and have the same voting rights.