How are members of Goldfish Swim School taxed on the company's earnings?

According to the 2025 Goldfish Swim School Franchise Disclosure Document, Goldfish Swim School is treated as a partnership for federal income tax purposes. Because of this structure, the company itself does not pay federal income taxes. Instead, the responsibility for these taxes falls on the individual members (franchisees) of the company.

Each member is taxed individually on their pro rata ownership share of the company's earnings. This means that a franchisee's tax liability is directly proportional to their ownership percentage in the Goldfish Swim School franchise. The allocation of the company's net income or loss among the members is determined by the terms outlined in the company's operating agreement.

Prospective franchisees should carefully review the operating agreement to fully understand how income and losses are allocated, as this will directly impact their individual tax obligations. It is advisable to consult with a tax professional to assess the specific tax implications of investing in a Goldfish Swim School franchise, based on their individual financial situation and the details of the operating agreement.