What was the value of the 'Leased Asset - Operating lease' for Goldfish Swim School in 2023?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company recognizes expense for operating leases on a straight-line basis over the lease term. The Company made a policy election not to separate lease and nonlease components for all leases. Therefore, all payments are included in the calculation of the right-of-use asset and lease liability.
The Company elected to use the risk-free rate as the discount rate for calculating the right-of-use asset and lease liability in place of the incremental borrowing rate for all leases. As such, the Company considers the U.S. daily treasury par yield curve issued by the U.S. Department of the Treasury to be a risk-free rate.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
I am unable to provide the specific value of the 'Leased Asset - Operating lease' for Goldfish Swim School in 2023, as this information is not present within the provided excerpts from the 2025 Franchise Disclosure Document. While the document discusses operating leases and the accounting methods used by Goldfish Swim School, it does not disclose the actual value of these assets on the balance sheet for any specific year.
However, the FDD does provide some context regarding leases. It mentions that Goldfish Swim School recognizes expenses for operating leases on a straight-line basis over the lease term and includes all payments in the calculation of the right-of-use asset and lease liability. They also use the risk-free rate as the discount rate for calculating these figures. This indicates that operating leases are a significant part of Goldfish Swim School's financial operations.
A prospective franchisee should directly ask Goldfish Swim School's franchisor for the specific value of 'Leased Asset - Operating Lease' for 2023. Understanding the magnitude of these assets can provide a clearer picture of the company's financial health and its obligations related to leased properties. Additionally, it would be beneficial to inquire about the typical lease terms and conditions that Goldfish Swim School enters into, as these can significantly impact the franchisee's own financial planning and obligations.