What was the total amount of brand fund fees collected by Goldfish Swim School in 2023?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
following year. The Company accrues all brand fund fees collected in excess of advertising expended. As of December 31, 2024, 2023, and 2022, cumulative advertising expended exceeded brand fund fees collected, and no liability was recognized.
Brand fund fees from the franchisees of $7,107,549, $6,322,770, and $5,238,689 for 2024, 2023, and 2022, respectively, are included in net revenue in the accom
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, brand fund fees from franchisees totaled $6,322,770 in 2023. These fees are included in the net revenue reported in the consolidated statement of operations. The brand fund is used for advertising, marketing, and other promotional activities.
Franchisees contribute a percentage of their monthly sales to this fund, which is maintained in a separate bank account by Goldfish Swim School Franchise Marketing, LLC. Any unspent funds at the end of the year are carried over for use in the following year.
In 2023, the brand fund expenses amounted to $6,313,920, which was less than the fees collected. This indicates that Goldfish Swim School spent nearly all of the brand fund fees collected from franchisees on advertising and marketing initiatives during that year. This is a common practice in franchising, where brand funds are used to promote the brand and support franchisees' marketing efforts.