What was the cash paid for income taxes by Goldfish Swim School in 2022?
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)
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 pay federal income taxes. Instead, the company's income or loss is allocated among its members (owners) according to their operating agreement, and the members are individually responsible for paying taxes on their share of the company's earnings. Therefore, Goldfish Swim School did not directly pay cash for income taxes in 2022.
This structure has significant implications for franchisees. As a partnership, the tax liabilities pass through to the individual owners. Prospective franchisees should consult with a tax advisor to understand the tax implications of owning a Goldfish Swim School franchise, as each member's tax situation will depend on their individual circumstances and pro rata share of the company's earnings.
Because Goldfish Swim School operates as a partnership, the FDD does not include a line item for cash paid for income taxes at the company level. Instead, the tax responsibilities and liabilities are passed on to the individual members based on their share of the company's earnings.