What is the reduced initial franchise fee for each additional Goldfish Swim School to be developed after the first?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
loper is calculated based upon the number of Swim Schools to be developed under the Development Schedule set forth in Section 3.A hereof. The initial franchise fee for each Swim School to be developed under this Agreement shall be Fifty Thousand and 00/100 Dollars ($50,000.00) for the first Swim school to be developed under the Development Schedule and Forty Thousand and 00/100 Dollars ($40,000) for each subsequent Swim School to be developed under the Development Schedule. The Development Fee shall be equal to Fifty Thousand and 00/100 Dollars ($50,000.00) for the first Swim school to be developed under the Development Schedule plus one-half of the initial franchise fee of Forty Thousand and 00/100 Dollars ($40,000) for each subsequent Swim school to be developed under the Development Schedule. The Development Fee shall be payable upon execution of this Development Agreement. The remaining portion of the initial franchise fee for each subsequent Swim School to be developed under the Development Schedule shall be paid at the time that the Developer signs each subsequent Franchise Agreement. Developer shall receive a credit against the payment of the Initial Franchise
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, the initial franchise fee for the first swim school is $50,000. For each subsequent Goldfish Swim School to be developed under the Development Schedule, the initial franchise fee is reduced to $40,000. This reduced fee applies to franchisees who commit to developing multiple locations under an area development agreement.
This reduction in the initial franchise fee for additional locations is a common practice in franchising, as it incentivizes franchisees to expand the brand's presence. For a Goldfish Swim School franchisee, this means a lower upfront investment for each additional location beyond the first. This can significantly impact the overall cost of expanding their business and potentially improve their return on investment.
It's important to note that this reduced fee is specifically tied to the Development Schedule outlined in the Area Development Agreement. The franchisee must adhere to the agreed-upon timeline for opening new locations to qualify for the reduced fee. This schedule is detailed in Attachment 1 to the Area Development Agreement. The remaining portion of the initial franchise fee for each subsequent Swim School to be developed under the Development Schedule shall be paid at the time that the Developer signs each subsequent Franchise Agreement. Developer shall receive a credit against the payment of the Initial Franchise Fee due for each Swim school developed pursuant to the Development Schedule for the proportionate share of the Development Fee ($20,000).
Prospective franchisees should carefully review the Development Schedule and ensure they have the resources and capabilities to meet the required timelines. Failure to comply with the Development Schedule could result in the termination of the agreement and the loss of the right to develop additional locations. Franchisees should also understand the terms and conditions of the Development Agreement and Franchise Agreement to fully understand their obligations and rights.