When does the monthly Royalty Fee collection commence for a Goldfish Swim School franchise?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
in Exhibit 4 to this Agreement. The Franchise Fee shall be deemed fully earned upon execution of this Agreement and is nonrefundable, except under certain conditions set forth under Sections 5.2 and 8.3. The Franchise Fee is payment, in part, for expenses incurred by Franchisor in furnishing assistance and services to Franchisee as set forth in this Agreement and for costs incurred by Franchisor, including general sales and marketing expenses, training, legal, accounting and other professional fees.
3.2 Monthly Royalty Fee
Franchisor will collect a Royalty Fee on a monthly basis commencing on the earlier of the date that Franchisee opens for business to the public under section 5.6.1 of this Agreement or on the expiration of the Development Period as defined herein. Thereafter, on the fifth day of each month (unless such fifth day is a Saturday or Sunday, and in such case on the following Monday), for so long as this Agreement shall be in effect, Franchisee shall pay to Franchisor without offset, credit or deduction of any nature, a monthly fee ("Royalty Fee"). The Royalty Fee shall be equal to the greater of One Thousand Two Hundred Fifty Dollars ($1,250) or six percent (6%) of Gross Sales for the preceding month for the ninety (90) day period following the earlier of the date Franch
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, the monthly Royalty Fee collection begins on the earlier of two dates: when the franchisee opens their Goldfish Swim School to the public, or when the Development Period expires. After this initial point, the Royalty Fee is due on the fifth day of each month, unless the fifth day falls on a Saturday or Sunday, in which case it is due on the following Monday.
For the first 90 days after opening or the expiration of the Development Period, the monthly Royalty Fee is the greater of $1,250 or 6% of Gross Sales for the preceding month. After this initial 90-day period, the monthly Royalty Fee increases to the greater of $4,000 or 6% of Gross Sales for the preceding month.
The Royalty Fee must be paid via Electronic Funds Transfer, with Goldfish Swim School authorized to withdraw the fee from the franchisee's account each month. Franchisees are also required to submit a Gross Sales Report to Goldfish Swim School by the third day of each month, detailing sales for the preceding month. This ensures accurate calculation and timely payment of the Royalty Fee.