A Legal Trust Fund is a dedicated pool of money contributed by members for the specific purpose of funding legal expenses. In the case of the GSFOA Legal Trust Fund, these funds may be used to support legal actions (e.g., letters from attorneys, lawsuits, etc.) that protect franchisees’ rights and business interests.

FAQs Archive - Page 2 of 3 - GSFOA an Independent Association of The Goddard School® Franchisees

Q: How is the GSFOA Legal Trust Fund managed?

The fund is managed by a designated GSFOA committee with fiduciary responsibility to the GSFOA Board to ensure the funds are used appropriately. Disbursement decisions are made with input from the board, and legal counsel, and in the case of large potentially large disbursements, in consultation with contributing members, based on the merits, risks, and potential benefits of any proposed legal action. Full transparency and accountability to contributors are core principles of the fund’s management.

Q: What is the purpose of the GSFOA Legal Trust Fund?

The GSFOA Legal Trust Fund, established with help from the AAFD, is designed to protect franchisees’ interests by encouraging Goddard Systems, LLC (GSL) to collaborate with GSFOA before implementing changes to that are costly or potentially harmful to franchisees’ businesses. These include new policies, tools, fees, or procedures that could negatively impact franchisees' businesses and are not clearly outlined in current Franchise Disclosure Documents (FDDs). The fund provides the resources necessary to pursue legal action if needed, while ideally promoting consultation and transparency between GSL and GSFOA members before disputes arise.

Q: Why does our franchisor choose not to recognize the GSFOA?

We do not know why our franchisor does not want to recognize the GSFOA. However, it is possible, as can be reasonably inferred from a June 8, 2023 letter to the FTC from our franchisor’s CEO, that our franchisor is confident that any requirement or need for franchisee contribution to the franchisor’s decision making is satisfied by the GSAC and Input Groups, and that the operating models, tools, services, guidance, ECE curricula, etc. our franchisor provides are sufficient for franchisees to operate successfully.

Q: What are the benefits of joining the GSFOA?

When you join the GSFOA you will gain access to: Low-cost benefit plans and discounts on purchases that are not available through our franchisor or local brokers. Legal advice regarding your franchise renewal agreement from an attorney who is familiar with our franchisor’s agreements and can negotiate effectively on your behalf. Opinions about government actions that could negatively impact franchisees and that may not be held or shared by our franchisor or the IFA. Guidance and advice from experienced franchisees on how to manage your business; and, Help communicating with our franchisor about things that are important to your business.