What does the high estimate for real estate/rent costs for a Goldfish Swim School assume?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
3 Real Estate/Rent. You must lease or otherwise provide a suitable facility for the operation of the franchised swim school. Typically, the facility will range in size from 6,000 to 9,500 square feet. It is difficult to estimate lease acquisition costs because of the wide variation in these costs between various locations. Lease costs will vary based upon square footage, cost per square foot and required maintenance costs. The low estimate is based on an assumption that you will own your property and, therefore, have no security deposit or rent obligations in the initial period. The high estimate is based upon an assumption that you will lease your property and includes 3 months rent and a security deposit. Some landlords may refund the security deposit if you cancel the lease before you occupy the premises. The estimated range of costs in this category includes your costs to enter into a lease agreement for the facility and rental expense for the opening period of operations (3 months). These estimates do not include property acquisition or real estate costs. If you choose to purchase the building you will not have a lease deposit or rent.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–27)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, the high estimate for real estate/rent, which can reach up to $82,000, is based on the assumption that the franchisee will lease the property for their swim school. This estimate includes the costs of 3 months' rent in addition to a security deposit.
This is a crucial consideration for prospective franchisees as it highlights the significant financial impact of leasing a facility versus owning the property. The FDD notes that real estate costs can vary widely depending on location, square footage (typically 6,000 to 9,500 square feet), and required maintenance.
It's important to note that these estimates do not include property acquisition or real estate costs. If a franchisee chooses to purchase the building, they will not incur lease deposit or rent expenses. Therefore, the decision to lease or buy will substantially affect the initial investment required to open a Goldfish Swim School franchise.