What expenses are included in the 'Additional Funds' estimate for a Big Blue Swim School?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
market area.
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- This line-item estimates the funds needed to cover your other pre-opening expenses as well as your expenses during the first 3 months of operation (other than the items identified separately in the table), including labor, supplies, rent, and utilities. These expenses do not include any draw or salary for you. We relied on the experience of the open franchised and corporate pools (some of which have been operating since 2012) to compile this Additional Funds estimate.
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- If you are a new customer of your local utilities, you generally must pay deposits to obtain services, including electric, telephone, gas, and water. The deposit's amount and refundability depend on the local utilities.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 25–29)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, the 'Additional Funds' estimate covers various pre-opening and operational expenses during the first three months. These expenses include labor, supplies, rent, and utilities, but exclude any draw or salary for the franchisee. The estimated range for these additional funds is between $55,000 and $145,000.
The FDD indicates that these funds are paid as incurred to employees, suppliers, other third parties, and to Big Blue Swim School itself. Big Blue Swim School compiled this estimate based on the experience of both franchised and corporate pools, some of which have been operating since 2012. This suggests that the franchisor has a reasonable basis for the estimate, drawing from historical operational data.
Prospective franchisees should carefully consider this estimate and evaluate whether it aligns with their own anticipated expenses, considering local market conditions and their operational plans. It is important to note that these figures are estimates and actual costs may vary. Franchisees should also factor in potential utility deposits, which may be required by local service providers.