Will Goldfish Swim School provide franchisees with an accounting of the Brand Fund each year?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Any Brand Fund revenue not spent in the fiscal year will be either used to eliminate a previous year's Brand Fund deficiency or carried over to the next fiscal year and spent on behalf of the System. In the future, if the Brand Fund spends more in any fiscal year than it receives, we intend to recover such expenditures in the following fiscal year. We do not use any portion of the Brand Fund for the sole solicitation of new franchisees. We anticipate all of our franchisees will contribute to the Brand Fund, although there is no prohibition against us charging higher or lower rates for future 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 franchisees contribute to a System-wide Brand Fund, which is administered by an affiliate. While the document outlines how the Brand Fund is managed, including the control of creative concepts, materials, media, and the allocation of advertisements, it does not explicitly state that Goldfish Swim School will provide franchisees with an annual accounting of the Brand Fund.
The FDD specifies that the affiliate uses contributions to cover the costs of advertising, marketing, and public relations activities. It also states that the contributions are kept in a separate account and are not used for general operating expenses, except for reasonable administrative costs. Any unspent revenue in a fiscal year will be used to cover previous deficiencies or carried over to the next year.
Although the FDD details the usage and management of the Brand Fund, the absence of a direct statement about providing an annual accounting leaves a gap in transparency. A prospective franchisee should seek clarification from Goldfish Swim School regarding whether they will receive a regular accounting of the Brand Fund, to understand how their contributions are being utilized and managed.