What is the average rent and occupancy costs for a Goldfish Swim School, as shown in Table 1?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| REVENUE | Average | Revenues # Surpassing % Surpassing Low | 1st Quartile | Median | 3rd Quartile | High |
|---|---|---|---|---|---|---|
| SWIM LESSONS | 2,050,837 | 95.5% 65 41.9% 270,919 | 1 ,381,954 | 1 ,851,920 | 2 ,522,329 | 6 ,072,092 |
| OTHER (1) | 96,267 | 4.5% 71 45.8% 1 0,073 | 6 3,910 | 9 2,979 | 119,262 | 284,331 |
| TOTAL REVENUE | 2,147,104 | 100.0% 67 43.2% 280,992 | 1 ,479,757 | 1 ,979,745 | 2 ,629,994 | 6 ,245,914 |
| OPERATING EXPENSES | ||||||
| PAYROLL AND RELATED EXPENSES (2) | 734,110 | 34.2% 63 40.6% 254,358 | 543,029 | 681,134 | 901,574 | 1 ,628,682 |
| SUPPLIES (3) | 59,201 | 2.8% 67 43.2% 9,732 | 3 6,170 | 5 2,101 | 8 2,648 | 135,086 |
| MERCHANT FEES | 53,008 | 2.5% 71 45.8% 7,224 | 3 6,014 | 5 0,121 | 6 4,647 | 164,050 |
| REPAIRS AND MAINTENANCE | 70,276 | 3.3% 70 45.2% 1 0,491 | 4 0,347 | 6 6,664 | 9 1,216 | 236,599 |
| INSURANCE (4) | 37,115 | 1.7% 56 36.1% 9,296 | 2 0,424 | 3 1,283 | 4 4,236 | 215,057 |
| RENT AND OCCUPANCY COSTS (5) | 213,274 | 9.9% 56 36.1% 4 8,435 | 143,478 | 187,757 | 249,318 | 1 ,240,067 |
| UTILITIES 6) | 65,292 | 3.0% 66 42.6% 1 5,675 | 4 9,126 | 6 0,301 | 7 6,758 | 168,508 |
| ROYALTIES | 128,826 | 6.0% 67 43.2% 1 6,860 | 8 8,785 | 118,785 | 157,800 | 374,755 |
| NATIONAL ADVERTISING FUND | 42,942 | 2.0% 67 43.2% 5,620 | 2 9,595 | 3 9,595 | 5 2,600 | 124,918 |
| ADVERTISING AND MARKETING (7) | 63,941 | 3.0% 76 49.0% 1 0,007 | 4 7,426 | 6 3,841 | 8 0,767 | 152,494 |
| TOTAL OPERATING EXPENSES | 1,467,985 | 68.4% 58 37.4% 556,370 | 1 ,121,082 | 1 ,368,523 | 1 ,747,657 | 3 ,178,558 |
| PROFIT BEFORE OTHER EXPENSES (8) | 679,119 | 31.6% 69 44.5% (685,464) | 361,153 | 617,147 | 897,409 | 3 ,141,627 |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 65–68)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, Table 1 presents the average rent and occupancy costs for the 155 franchised swim schools that were open for at least 12 months as of December 31, 2024. The average rent and occupancy costs for these locations was $213,274. It is important to note that 56 of the 155 locations surpassed this average, representing 36.1% of the locations. The lowest rent and occupancy cost was $48,435, while the first quartile was $143,478, the median was $187,757, the third quartile was $249,318, and the highest was $1,240,067.
Rent and occupancy costs include the gross costs of base rent, common area maintenance (CAM), alarm costs, and real estate taxes as reported by franchisees. Some franchisees may report rent as "gross rent" based on their lease agreements. These costs do not account for any free rent, tenant improvement allowances, or other credits that may affect annual rent and occupancy costs, which can vary significantly for each franchisee. Some franchisees enter lease agreements with third-party landlords, while others may lease from affiliated entities, which can also impact annual rent and occupancy costs. The FDD emphasizes that rent and occupancy costs will vary widely by market.
Prospective franchisees should carefully consider these figures, understanding that their actual rent and occupancy costs may differ significantly based on their specific location and lease terms. It is crucial to conduct thorough market research and negotiate favorable lease terms to manage these expenses effectively. The wide range between the low and high rent/occupancy costs ($48,435 to $1,240,067) highlights the importance of location selection and lease negotiation. Franchisees should also consult with experienced real estate professionals to assess potential locations and negotiate lease agreements.