What is the average royalty expense for a Goldfish Swim School, as shown in Table 2?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| REVENUE | Average | Revenues # Surpassing % Surpassing Low | 1st Quartile | Median | 3rd Quartile | High |
|---|---|---|---|---|---|---|
| SWIM LESSONS | 1,791,115 | 95.1% 8 42.1% 270,919 | 977,756 | 1 ,370,488 | 2 ,526,258 | 4 ,037,114 |
| OTHER (1) | 92,509 | 4.9% 10 52.6% 1 0,073 | 5 1,717 | 9 7,718 | 119,203 | 199,291 |
| TOTAL REVENUE | 1,883,624 | 100.0% 8 42.1% 280,992 | 1 ,016,372 | 1 ,473,513 | 2 ,612,513 | 4 ,195,398 |
| OPERATING EXPENSES | ||||||
| PAYROLL AND RELATED EXPENSES (2) | 659,144 | 35.0% 8 42.1% 319,270 | 459,472 | 590,700 | 844,493 | 1 ,103,510 |
| SUPPLIES (3) | 51,241 | 2.7% 10 52.6% 9,732 | 3 3,422 | 5 2,101 | 6 6,432 | 8 5,845 |
| MERCHANT FEES REPAIRS AND MAINTENANCE | 46,891 59,522 | 2.5% 3.2% 8 7 42.1% 36.8% 7,224 1 1,020 | 2 6,548 2 7,193 | 3 9,732 4 6,179 | 6 4,801 8 6,544 | 110,329 136,560 |
| INSURANCE (4) | 27,493 | 1.5% 8 42.1% 1 2,329 | 1 6,831 | 2 6,238 | 3 5,341 | 6 7,740 |
| RENT AND OCCUPANCY COSTS (5) | 276,763 | 14.7% 7 36.8% 4 8,435 | 114,830 | 201,801 | 306,137 | 1 ,240,067 |
| UTILITIES (6) | 74,360 | 3.9% 8 42.1% 2 0,804 | 4 6,041 | 7 1,429 | 9 7,297 | 142,779 |
| ROYALTIES | 113,017 | 6.0% 8 42.1% 1 6,860 | 6 0,982 | 8 8,411 | 156,751 | 251,724 |
| NATIONAL ADVERTISING FUND | 37,672 | 2.0% 8 42.1% 5,620 | 2 0,327 | 2 9,470 | 5 2,250 | 8 3,908 |
| ADVERTISING AND MARKETING (7) | 68,771 | 3.7% 11 57.9% 1 0,007 | 4 9,539 | 7 6,459 | 8 5,546 | 135,942 |
| TOTAL OPERATING EXPENSES | 1,414,874 | 75.1% 7 36.8% 721,934 | 963,122 | 1 ,169,800 | 1 ,705,068 | 3 ,178,558 |
| PROFIT BEFORE OTHER EXPENSES (8) | 468,750 | 24.9% 9 47.4% (685,464) | 9 2,773 | 379,193 | 907,445 | 1 ,460,401 |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 65–68)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, Table 2 provides financial performance representations based on data from 19 franchised swim schools open for their first full calendar year as of December 31, 2024. The average royalty expense for these schools was $113,017. This figure represents the average royalty payments made by these specific Goldfish Swim School locations during their initial year of operation.
For a prospective franchisee, this number serves as a benchmark for estimating royalty expenses during the first year of operation. However, it's crucial to recognize that this is an average, and individual results can vary significantly. The FDD indicates that 42.1% of the reporting franchisees surpassed this average, while others paid less. Factors influencing royalty expenses include gross revenue, as royalties are typically calculated as a percentage of revenue.
It is important to note that the royalty is 6.0% of revenue. The FDD also provides additional context, including the range of royalty expenses, with the 1st quartile at $16,860, the median at $60,982, the 3rd quartile at $88,411, and the high end reaching $251,724. This data offers a more comprehensive view of potential royalty obligations. Prospective franchisees should carefully consider their projected revenue and consult with existing franchisees to gain a more realistic understanding of potential royalty expenses for their specific location and market conditions.
As with all financial performance representations, Goldfish Swim School notes, "Some outlets have earned this amount. Your individual results may differ. There is no assurance that you'll earn as much."