What components make up the transaction prices in Goldfish Swim School's franchise agreements?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
wim School Franchising, LLC and Subsidiary (the "Company") is engaged in franchising and support of franchisees in the establishment and operations of Goldfish Swim Schools. Franchise schools are located throughout the United States.
The Company executes franchise agreements that establish the terms of its arrangement with franchisees. The franchise agreements require the franchisee to pay an initial fee of $50,000, with a reduction in the fran
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, the franchise agreements require franchisees to pay several fees. The first is an initial franchise fee of $50,000, which may be reduced for franchisees opening additional locations.
In addition to the initial franchise fee, Goldfish Swim School franchisees must pay ongoing fees. These include a monthly royalty fee, calculated as 6% of gross sales. Franchisees are also required to contribute to a brand fund, which can be up to 2% of gross sales.
These fees are standard in the franchise industry. The initial franchise fee compensates Goldfish Swim School for granting the franchise rights and providing initial training and support. The ongoing royalty and brand fund contributions allow Goldfish Swim School to support the franchise system and promote the brand.