What is the role of the affiliate in administering the Goldfish Swim School 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)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, an affiliate administers the Brand Fund. This affiliate manages the creative aspects, materials, and media utilized in advertisements, and also decides on the placement and allocation of these advertisements. The advertising may include print, television, radio, Internet, and other media. Goldfish Swim School does not guarantee that any franchisee will directly benefit from the advertising in proportion to their contribution to the Brand Fund.
The affiliate may use franchisee contributions to cover the costs of producing, maintaining, administering, and directing consumer advertising. This includes expenses related to television, radio, Internet, magazine, direct mail, and newspaper advertising campaigns, as well as public relations activities, website hosting, promotional brochures, market research, and other marketing materials. The contributions to the Brand Fund are kept in a separate account by the affiliate, distinct from the franchisor's funds, and will not be used for general operating expenses, except for reasonable administrative costs and overhead related to managing the Brand Fund. The Brand Fund contributions will not be used for direct solicitation of franchise sales.
The affiliate is expected to use all contributions within the fiscal year they are made and will utilize any interest or earnings of the Brand Fund before using current contributions. While the Brand Fund is intended to be perpetual, Goldfish Swim School reserves the right to terminate it if necessary, but only after all contributions and earnings have been used for advertising and promotional purposes or after returning each franchisee's pro rata share. All Goldfish Swim Schools owned by the franchisor or its affiliates will contribute to the Brand Fund on the same basis as required of franchisees.