For Goldfish Swim School, what is the purpose of the restricted cash?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
porting period. Actual results could differ from those estimates.
Cash Equivalents
The Company considers all investments with an original maturity of three months or less when purchased to be cash equivalents.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, the company maintains restricted cash equal to the amount of unspent advertising funds on deposit. This means that the funds are specifically earmarked and can only be used for advertising purposes.
As of December 31, 2024, the restricted cash balance was $228,445. In the preceding years, the restricted cash balance was $394,607 as of December 31, 2023, and $260,904 as of December 31, 2022. These figures indicate the amount of advertising funds that remained unspent at the end of each of those years.
For a prospective Goldfish Swim School franchisee, this is a positive sign. It demonstrates that the company is holding advertising funds in reserve, presumably to be used for marketing and promotional activities that benefit the entire franchise system. Franchisees typically contribute to such advertising funds, so knowing the money is protected and dedicated to its intended purpose can provide reassurance.