What constitutes the total Development Fee for the Area Development Agreement for a Goldfish Swim School?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
er this Agreement if you have not complied with each and every condition necessary to develop the Swim schools.
4. FEES AND PAYMENTS
- A. In consideration of the development rights granted herein, Developer shall pay to us upon execution of this Agreement the Development Fee. Under no circumstances shall Developer be entitled to any refund of any portion of the Development Fee.
- B. The Development Fee to be paid by Developer is calculated based upon the number of Swim Schools to be developed under the Development Schedule set forth in Section 3.A hereof. The initial franchise fee for each Swim School to be developed under this Agreement shall be Fifty Thousand and 00/100 Dollars ($50,000.00) for the first Swim school to be developed under the Development Schedule and Forty Thousand and 00/100 Dollars ($40,000) for each subsequent Swim School to be developed under the Development Schedule. The Development Fee shall be equal to Fifty Thousand and 00/100 Dollars ($50,000.00) for the first Swim school to be developed under the Development Schedule plus one-half of the initial franchise fee of Forty Thousand and 00/100 Dollars ($40,000) for each subsequent Swim school to be developed under the Development Schedule. The Development Fee shall be payable upon execution of this Development Agreement. The remaining portion of the initial franchise fee for each subsequent Swim School to be developed under the Development Schedule shall be paid at the time that the Developer signs each subsequent Franchise Agreement. Developer shall receive a credit against the payment of the Initial Franchise
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, the Development Fee is determined by the number of swim schools a developer commits to opening under the Development Schedule. The initial franchise fee is $50,000 for the first swim school. For each subsequent swim school, the initial franchise fee is reduced to $40,000.
The Development Fee includes the $50,000 fee for the first swim school, plus one-half of the $40,000 initial franchise fee (i.e., $20,000) for each additional swim school to be developed under the agreement. This total Development Fee is payable upon execution of the Development Agreement.
For each swim school after the first, the remaining portion of the initial franchise fee ($20,000) is due when the developer signs the individual Franchise Agreement for that location. The developer will receive a credit for the proportionate share of the Development Fee ($20,000) against the Initial Franchise Fee due for each swim school developed according to the Development Schedule. This means that while the total franchise fee for subsequent locations is $40,000, $20,000 is paid upfront as part of the development fee, and the remaining $20,000 is paid when signing the franchise agreement for that specific location.