When is the Development Fee paid for a Goldfish Swim School Area Development Agreement?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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 5 — INITIAL FEES (FDD pages 16–17)
What This Means (2025 FDD)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, the Development Fee is due upon the execution of the Area Development Agreement. The Development Fee is non-refundable. The fee is calculated based on the number of swim schools the developer commits to opening under the Development Schedule.
The Development Fee covers the initial franchise fee for the first swim school, which is $50,000, plus half of the initial franchise fee ($40,000) for each additional swim school to be developed. This means that for each subsequent swim school, an additional $20,000 is added to the Development Fee.
For a prospective Goldfish Swim School area developer, this means that a significant upfront investment is required. The initial payment covers the rights to develop multiple locations within a specific territory. The remaining portion of the initial franchise fee for each subsequent swim school ($20,000) is due when the developer signs each subsequent Franchise Agreement. The developer will receive a credit for the $20,000 already paid from the Development Fee against the Initial Franchise Fee due for each swim school developed.