Are the initial franchise fees for a Goldfish Swim School franchise refundable?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
er 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 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, the initial development fee is non-refundable. Specifically, the FDD states that under no circumstances is the developer entitled to a refund of any portion of the Development Fee. This fee compensates Goldfish Swim School for granting the development rights to the franchisee.
The development fee is determined by the number of swim schools the developer plans to establish under the Development Schedule. The initial franchise fee is $50,000 for the first swim school and $40,000 for each subsequent swim school. The development fee is calculated as $50,000 for the first swim school, plus one-half of the initial franchise fee ($40,000) for each additional swim school.
For a prospective Goldfish Swim School franchisee, this means that the development fee, which covers the rights to develop swim schools in a specific territory, is non-refundable. The remaining portion of the initial franchise fee for each subsequent swim school is paid when the franchisee signs each subsequent Franchise Agreement. The franchisee will receive a credit of $20,000 against the Initial Franchise Fee due for each swim school developed pursuant to the Development Schedule.