What does the low 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
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–27)
What This Means (2025 FDD)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, the low estimate for real estate/rent, which ranges from $0 to $82,000, assumes that the franchisee will own the property. Therefore, the franchisee would not have any security deposit or rent obligations during the initial period.
Conversely, the high estimate of $82,000 is based on the assumption that the franchisee will lease the property. This high estimate includes the costs for 3 months' rent and a security deposit. The document clarifies that these figures do not include property acquisition or real estate costs.
Prospective Goldfish Swim School franchisees should carefully consider whether to lease or purchase property for their swim school, as this decision will significantly impact their initial investment. Owning the property outright eliminates initial rent and security deposit expenses but requires a substantial capital outlay for the purchase. Leasing, on the other hand, requires less upfront capital but involves ongoing rental payments and security deposits.