Does Goldfish Swim School separate lease and nonlease components for operating leases?

According to the 2025 Goldfish Swim School FDD, the company does not separate lease and non-lease components for operating leases. Instead, Goldfish Swim School recognizes expense for operating leases on a straight-line basis over the lease term. All payments are included in the calculation of the right-of-use asset and lease liability.

This policy election means that when a franchisee leases a property for their Goldfish Swim School location, the entire lease payment, including any portions that might be considered non-lease components (such as maintenance or service fees), are treated as part of the lease expense. This simplifies the accounting process for the company.

For a prospective Goldfish Swim School franchisee, this implies that the financial statements presented in the FDD will reflect lease expenses calculated in this manner. It is important for franchisees to understand this accounting treatment when reviewing the financial performance of existing Goldfish Swim School locations and projecting their own potential profitability. Franchisees should consult with their financial advisors to fully understand the implications of this policy on their business.