What is the depreciable life in years for building improvements for a Goldfish Swim School?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
closures include evaluation of events up through and including March 12, 2025, which is the date the consolidated financial statements were available to be issued.
Note 3 - Property and Equipment
Property and equipment are summarized as follows:
| 2024 | 2023 | 2022 | Depreciable Life - Years | |||
|---|---|---|---|---|---|---|
| Furniture and equipment | $ 685,132 | $ | 685,132 | $ | 770,502 | 5-10 |
| Software | 448,684 | 448,684 | 458,881 | 3 | ||
| Building impr |
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, building improvements have a depreciable life of 15 years. This means that for accounting and tax purposes, Goldfish Swim School franchisees can spread the cost of building improvements over a 15-year period rather than deducting the entire cost in the year the improvements are made. This can impact the franchisee's annual taxable income.
The FDD provides a table outlining the depreciable life for various assets. Besides building improvements, the table also lists furniture and equipment, which have a depreciable life of 5-10 years, and software, which has a depreciable life of 3 years. These figures are based on Goldfish Swim School Franchising, LLC's consolidated financial statements.
Understanding the depreciable life of assets is crucial for financial planning and tax management. A prospective Goldfish Swim School franchisee should consult with a financial advisor or accountant to fully understand the implications of depreciation on their investment and tax obligations. This will help in accurately forecasting expenses and managing cash flow.