What were the income taxes for Goldfish Swim School in 2020?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company is treated as a partnership for federal income tax purposes. Consequently, federal income taxes are not payable or provided for by the Company. Members are taxed individually on their pro rata ownership share of the Company's earnings. The Company's net income or loss is allocated among the members in accordance with the Company's operating agreement.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, Goldfish Swim School is treated as a partnership for federal income tax purposes. Therefore, the company itself does not pay federal income taxes. Instead, the company's net income or loss is allocated among its members, who are then responsible for paying taxes on their pro rata ownership share of the company's earnings. This arrangement was in effect in 2020.
This means that as a franchisee, you would not be directly responsible for Goldfish Swim School's federal income taxes. However, the financial performance of the overall company, including its profitability and allocation of income, could indirectly affect your franchise through factors like brand strength and resource availability.
Prospective franchisees should consult with a financial advisor to understand the tax implications of investing in a partnership-structured franchise like Goldfish Swim School. Understanding how the company's tax structure affects individual member obligations is crucial for making informed financial decisions.