Are there any Advertising Cooperatives for Goldfish Swim School franchisees at this time?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
At this time, there are no Advertising Cooperatives. Although we are not obligated to do so, we may create a cooperative advertising program for the benefit of all Goldfish Swim School franchises located in a particular region so long as at least 50% of the franchisees in the region agree to create the advertising cooperative. Your contributions to the advertising cooperative will satisfy your local advertising obligations, provided that your contributions to the advertising cooperative meet or exceed the local advertising requirements. The level of your cooperative advertising contribution will be determined by the cooperative, of which you will be a voting member, but that amount may exceed your minimum local advertising obligation under the Franchise Agreement, but in no event will it exceed 5% of gross sales. We will determine the geographic territory and market areas for each cooperative advertising program. If formed, you must participate in any cooperative advertising program established in your region. If cooperative advertising is implemented in a particular region, an
advertising council of franchisees in that region will be appointed to self-administer the program. We reserve the right to dissolve or merge these program(s) and/or council(s) at any time. 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. (Section 11.4; See also ITEM 9.o.)
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, currently, there are no advertising cooperatives established for franchisees. However, Goldfish Swim School may choose to create one in the future for all franchises within a specific region, provided that at least 50% of the franchisees in that region agree to its creation.
If an advertising cooperative is formed, participation is mandatory for franchisees in that region. Franchisees would be voting members of the cooperative, and the level of contribution will be determined by the cooperative members. The contribution amount may exceed the minimum local advertising obligation outlined in the Franchise Agreement, but it will not exceed 5% of gross sales. Goldfish Swim School determines the geographic territory and market areas for each cooperative advertising program and reserves the right to dissolve or merge these programs and councils at any time.
Goldfish Swim Schools operated by the franchisor or its affiliates within the area covered by an advertising cooperative will contribute to the cooperative on the same basis as other franchisees and have the same voting rights. If a cooperative is implemented, an advertising council of franchisees in that region will be appointed to self-administer the program. Franchisees should note that their contributions to the advertising cooperative will satisfy their local advertising obligations, as long as the contributions meet or exceed the local advertising requirements.