Will Goldfish Swim School provide franchisees with an accounting of the Brand Fund?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Through our affiliate, we may use print, television, radio, Internet or other media for advertisements and promotions. Neither we nor our affiliate guarantee that any particular franchisee will benefit directly or in proportion to their contribution from the placement of advertising by the Brand Fund.
- (b) Through our affiliate, we may use your contributions to meet or reimburse us for any cost of producing, maintaining, administering and directing consumer advertising (including the cost of preparing and conducting television, radio, Internet, magazine, direct mail and newspaper advertising campaigns and other public relations activities; hosting an Internet web page of similar activities; employing advertising agencies to assist therein; providing promotional brochures; conducting market research; and providing other marketing materials to franchisees). Your contributions to the Brand Fund administered by our affiliate are in a separate account of our affiliate, separate from our funds, and will not be used for any of our general operating expenses, except for our reasonable administrative costs and overhead related to the administration of the Brand Fund. Neither we nor our affiliate will use Brand Fund contributions for the direct solicitation of franchise sales.
- (c) Through our affiliate, we expect to use all contributions in the fiscal year they are made. Through our affiliate, we will use any interest or other earnings of the Brand Fund before we use current contributions. 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.
- (d) All Goldfish Swim Schools owned by us or an affiliate will make contributions to the Brand Fund at the same basis as required of franchisees.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–42)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Goldfish Swim School does not explicitly state that they will provide franchisees with a regular accounting of the Brand Fund. However, the document does outline how the Brand Fund is administered by their affiliate.
The affiliate manages the creative concepts, materials, and media used in advertisements, determining their placement and allocation. They may use various media such as print, television, radio, and the Internet for advertising and promotions. While Goldfish Swim School does not guarantee direct proportional benefits to franchisees based on their contributions, the contributions are kept in a separate account by the affiliate, distinct from their general operating funds. The exception to this is that the Brand Fund can be used to cover reasonable administrative costs and overhead related to managing the Brand Fund.
Goldfish Swim School aims to use all contributions within the fiscal year they are made and will use any interest or earnings of the Brand Fund before using current contributions. The Brand Fund is intended to be perpetual, but Goldfish Swim School retains the right to terminate it if necessary, ensuring that all contributions and earnings are used for advertising and promotional purposes or returned to franchisees on a pro rata basis. All Goldfish Swim School locations owned by the company or its affiliates contribute to the Brand Fund on the same basis as franchisees.