What was the amount of accrued member distributions for Goldfish Swim School in 2023?
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 states that Goldfish Swim School's net income or loss is allocated among the members according to the company's operating agreement.
However, the provided excerpts from the 2025 FDD do not contain a specific figure for accrued member distributions for Goldfish Swim School in 2023. The excerpts focus on accounting policies, revenue recognition, advertising expenses, and other financial details, but they do not explicitly state the amount of distributions made to members.
A prospective franchisee should ask Goldfish Swim School's franchisor directly for the amount of accrued member distributions in 2023 to gain a clearer understanding of the company's financial performance and how profits are distributed among its members. This information would be helpful in evaluating the overall financial health and profitability of the franchise system.