Can Goldfish Swim School use Brand Fund contributions for their general operating expenses?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
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 Franchise Disclosure Document, contributions to the Brand Fund are managed by an affiliate and kept in a separate account, distinct from the franchisor's general funds. Goldfish Swim School is permitted to use these contributions to cover the costs associated with consumer advertising, which includes creating and managing advertising campaigns across various media such as television, radio, internet, and print. These funds can also be used for public relations activities, maintaining a website, employing advertising agencies, producing promotional materials, conducting market research, and providing marketing materials to franchisees.
However, Goldfish Swim School is restricted from using Brand Fund contributions for their general operating expenses. An exception exists where the franchisor can use the funds to cover reasonable administrative costs and overhead specifically related to managing the Brand Fund. Additionally, the document explicitly states that Brand Fund contributions cannot be used for the direct solicitation of franchise sales.
This arrangement ensures that franchisee contributions are primarily used for marketing and promotional activities intended to benefit the entire Goldfish Swim School system. Franchisees can be confident that their contributions are being used for their intended purpose, with limited exceptions for administrative costs directly tied to the Brand Fund's operation. This separation of funds and restrictions on usage provide a level of transparency and accountability in how the Brand Fund is managed.