Under what conditions can Goldfish Swim School terminate the Brand Fund?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, Goldfish Swim School intends for the Brand Fund to be perpetual but retains the right to terminate it if necessary. The Brand Fund, which is administered by an affiliate, is funded by franchisee contributions, and Goldfish Swim School commits to using all contributions in the fiscal year they are made, using any interest or other earnings of the Brand Fund before using current contributions.
Goldfish Swim School will not terminate the Brand Fund until all contributions and earnings have been used for advertising and promotional purposes. Alternatively, Goldfish Swim School may terminate the Brand Fund if they have returned each franchisee's pro rata share of the fund.
This means that while Goldfish Swim School aims to maintain the Brand Fund indefinitely, they have the flexibility to end it under specific conditions, ensuring that franchisee contributions are either fully utilized for their intended purpose or returned proportionally. This provides some assurance to franchisees regarding the use and potential return of their contributions to the Brand Fund.