What is the depreciable life in years for furniture and equipment 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, the depreciable life for furniture and equipment is between 5 and 10 years. This means that for accounting purposes, a franchisee can spread the cost of these assets over a 5 to 10 year period, rather than deducting the entire cost in the year of purchase. This can impact the reported profitability of the Goldfish Swim School franchise in the short term.
The FDD also provides the costs for furniture and equipment for the years 2022, 2023, and 2024. In 2024, 2023, and 2022 the cost was $685,132, $685,132, and $770,502 respectively. These figures represent the original cost of the furniture and equipment before any depreciation is accounted for.
Depreciation is a standard accounting practice that allows businesses to deduct the cost of assets over their useful life. The specific depreciation method used (e.g., straight-line, accelerated) can affect the amount of depreciation expense recognized each year. Prospective Goldfish Swim School franchisees should consult with a financial professional to understand the tax implications of depreciation and how it will impact their business's financial statements.