What is the Development Fee for an Area Development Agreement with Goldfish Swim School based upon?

According to the 2025 Goldfish Swim School Franchise Disclosure Document, the Development Fee for an Area Development Agreement is determined by the number of swim schools the developer commits to opening within the Development Territory. The Development Fee is calculated as the initial franchise fee for the first swim school, which is $50,000, plus $20,000 for each additional swim school to be developed under the Area Development Agreement. This additional $20,000 represents one-half of the reduced initial franchise fee of $40,000 for subsequent swim schools.

Upon signing the Area Development Agreement, the developer must pay the entire Development Fee as a lump sum. This payment is non-refundable. The remaining $20,000 balance of the initial franchise fee for each swim school opened under the Area Development Agreement is due upon execution of each individual Franchise Agreement.

For a prospective Goldfish Swim School area developer, this means a significant upfront investment is required, scaled to the number of units they plan to open. While the initial franchise fee is reduced for subsequent locations, the full Development Fee must be paid upfront, creating a financial commitment tied to the development schedule. This structure incentivizes the developer to adhere to the agreed-upon development schedule, as the initial payment is non-refundable.