How does Goldfish Swim School recognize revenue from the franchise right granted to franchisees?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company earns revenue from its franchised schools, which includes royalties, franchise fees, brand fund fees, and technology fees. The Company sells individual franchisees the right to operate a school within a defined territory using the franchise name. The initial term of franchise agreements is typically 15 years, with an option to renew or transfer the franchise agreement to a new or existing franchisee.
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 generates revenue from its franchised schools through various fees. These include royalties, franchise fees, brand fund fees, and technology fees. Goldfish Swim School grants franchisees the right to operate a school within a specific territory using the Goldfish Swim School name.
The initial franchise agreement typically lasts for 15 years. Franchisees have the option to renew or transfer the franchise agreement to another franchisee. In addition to these revenue streams, Goldfish Swim School also collects an initial franchise fee of $50,000, although this fee may be reduced for franchisees opening additional locations.
Beyond the initial fee, franchisees are obligated to pay ongoing fees. These include a monthly royalty fee of 6% of gross sales and a brand fund contribution of up to 2% of gross sales. These fees are crucial for Goldfish Swim School's continuous revenue generation and support of its franchise system.