What is the transfer fee under the Area Development Agreement for a Goldfish Swim School franchise?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks | |
|---|---|---|---|---|
| Transfer Fee | $2,500 if the transfer is to a transferee who is already part of the System, 50% of the then-current initial franchise fee if the transferee is new to the System. $10,000 under the Area Development Agreement | At the time of transfer | Payable to us at time of transfer. Does not apply to an assignment under Section 18.3 of the Franchise Agreement or an assignment under Section 8.C of the Area Development Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, the transfer fee under the Area Development Agreement is $10,000. This fee is payable to Goldfish Swim School at the time of the transfer. However, this fee does not apply to an assignment under Section 8.C of the Area Development Agreement.
Transfer fees are common in franchising and are typically charged by the franchisor to cover the costs associated with reviewing and approving a transfer application, updating records, and providing training to the new franchisee. The fee amount can vary widely depending on the brand, the complexity of the transfer, and the specific terms outlined in the franchise agreement.
For a prospective Goldfish Swim School franchisee, it's important to understand the conditions under which a transfer might occur and to factor this potential cost into their financial planning. It is also important to review Section 8.C of the Area Development Agreement to understand the conditions under which the transfer fee would not apply.
It would be prudent for a potential franchisee to discuss the transfer process and any associated requirements with existing franchisees to gain a better understanding of the practical implications of transferring an Area Development Agreement.