When does the Royalty Fee payment obligation commence for a Goldfish Swim School franchise?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ee is uniform.
ITEM 6. OTHER FEES
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | The greater of $1,250 per month or 6% of gross sales for the 90- day period following the earlier of the date you open for business or 600 days after you sign a Franchise Agreement, and the greater of $4,000 per month or 6% of gross sales thereafter. | Payable on the 5th day of each month | You must pay your royalty fee directly to us by Electronic Funds Transfer. Royalty payments shall commence on the earlier of when you open for business or 600 days after you sign a Franchise Agreement. See definit |
Source: Item 6 — OTHER FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, the Royalty Fee payment obligation begins on the earlier of two dates: when the franchise opens for business, or 600 days after signing the Franchise Agreement. The Royalty Fee must be paid directly to Goldfish Swim School via Electronic Funds Transfer on the 5th day of each month.
For the first 90 days, the Royalty Fee is the greater of $1,250 per month or 6% of gross sales. After this initial period, the Royalty Fee increases to the greater of $4,000 per month or 6% of gross sales.
This payment schedule is fairly typical in the franchise industry, where royalties usually commence shortly after the business begins operations. The '600 days after signing' clause protects Goldfish Swim School in case a franchisee delays opening their location, ensuring that the franchisor receives some income after a reasonable setup period. Prospective franchisees should factor these royalty payment terms into their financial projections to ensure they have sufficient capital to meet these obligations, especially during the initial months of operation.