What was the cash paid for income taxes by Goldfish Swim School in 2021?

According to the 2025 Goldfish Swim School FDD, the company is treated as a partnership for federal income tax purposes. This means that Goldfish Swim School itself does not directly pay federal income taxes. Instead, the members or owners of the company are taxed individually on their share of the company's earnings. The FDD specifies that the company's net income or loss is allocated among the members according to the company's operating agreement.

This arrangement has significant implications for potential franchisees. Because Goldfish Swim School operates as a partnership, franchisees should not expect the company to pay federal income taxes on its profits. Instead, franchisees will be responsible for paying income taxes on their individual share of the company's profits, as allocated by the operating agreement. This is a common structure for franchisors, as it allows the tax burden to be passed directly to the owners or members of the company.

Prospective franchisees should carefully review the operating agreement to understand how the company's net income or loss is allocated among its members. This will help them accurately estimate their individual tax liability based on their ownership share. Additionally, franchisees should consult with a tax professional to ensure they fully understand the tax implications of investing in a Goldfish Swim School franchise.