What was the amount of accrued member distributions for Goldfish Swim School?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company is treated as a partnership for federal income tax purposes. Consequently, federal income taxes are not payable or provided for by the Company. Members are taxed individually on their pro rata ownership share of the Company's earnings. The Company's net income or loss is allocated among the members in accordance with the Company's operating agreement.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Goldfish Swim School is treated as a partnership for federal income tax purposes, meaning the company itself does not pay federal income taxes. Instead, the members (owners) are taxed individually on their share of the company's earnings. The FDD does not specify a particular amount of accrued member distributions.
However, the document does state that the company's net income or loss is allocated among the members according to the company's operating agreement. This agreement would outline the specific terms and percentages by which profits and losses are distributed.
As the FDD does not state a specific amount of accrued member distributions, a prospective franchisee should inquire directly with Goldfish Swim School about the details of member distributions, including how they are calculated, when they are distributed, and what factors might affect the distribution amounts.