A standard Goldfish Swim School requires an estimated initial investment of $1,663,263 to $3,746,733 under the 2026 U.S. Franchise Disclosure Document. That range applies to one 5,000- to 9,000-square-foot swim school and already includes the Initial Franchise Fee, three months of Additional Funds, initial advertising, build-out, equipment, training expenses, deposits, and other Item 7 categories.
The largest disclosed cost is Leasehold Improvements at $1,334,230 to $2,685,033. Property acquisition, land purchase, and construction of a new building are not included, so an owned-site or ground-up project can fall outside the stated range. Source: 2026 FDD, Item 7, pages 14–19.
What is included in the Goldfish Swim School investment range?
The 2026 Item 7 range combines the franchise payment, premises work, pool-related construction, equipment, pre-opening payroll and training, opening marketing, professional services, permits, and three months of operating funds. The categories are estimates rather than spending caps, and the high end is driven mainly by Leasehold Improvements and Additional Funds.
Leasehold Improvements dominate the disclosed range; all bars use the same scale and show the official low and high values.
Source: 2026 FDD, Item 7, pages 14–19. This chart plots official ranges; it does not select a midpoint or create a typical budget.
Premises, pool construction, and physical assets
| Item 7 expenditure | 2026 range | When due | Primary payee |
|---|---|---|---|
| Real Estate/Rent | $0–$82,000 | Before and during the initial operating period | Lessor |
| Architectural Fees | $34,500–$85,000 | Before operations | Architect |
| Leasehold Improvements | $1,334,230–$2,685,033 | Before operations | Contractor and suppliers |
| Furniture, Fixtures, Equipment, Computers, and Decor | $100,000–$126,500 | Before operations | Approved Suppliers and other suppliers |
| Licenses, Permits, & Deposits | $4,500–$80,000 | Before operations | Authorities and utilities |
| Project Manager/Owner’s Representative | $15,000–$45,000 | As necessary | Contractor |
| Water Tap Fees | $0–$93,000 | As necessary | Local government |
Franchise, pre-opening, and initial operating costs
| Item 7 expenditure | 2026 range | When due | What the range covers |
|---|---|---|---|
| Franchise Fee | $40,000–$50,000 | At Franchise Agreement signing | $50,000 for the first school; reduced structure for later Area Development schools |
| Real Estate Fee | $0–$2,500 | At Franchise Agreement signing | $2,500 for the first leasehold-property school; not assessed on later schools under a multi-school path |
| Insurance | $4,283–$5,700 | Before operations | First three months |
| Training | $17,250–$37,000 | During training | Travel and lodging for two trainees, third-party certifications, and pre-opening staff costs |
| Initial Advertising Expense | $30,000–$70,000 | Before opening through first three months | Marketing, promotion, approved marketing services, and grand opening |
| Legal & Accounting | $8,500–$35,000 | Before operations | Attorney, accountant, bookkeeping, and consultants |
| Additional Funds | $75,000–$350,000 | As necessary | Three months of utilities, employee salaries, royalties, Brand Fund fees, rent, and supplier costs |
The $0 low estimate for Real Estate/Rent assumes the franchisee owns the premises and therefore has no initial rent or security deposit. Item 7 separately excludes property acquisition, land cost, and initial building construction. A buyer should not interpret the $0 line as meaning an owned site has no real-estate capital requirement.
When is the money paid?
The cash requirement arrives in stages rather than as one payment. The Initial Franchise Fee and first-school Real Estate Fee are due at signing; most premises, pool, equipment, permit, insurance, and professional costs are paid before opening; and the Item 7 Additional Funds are held for the first three operating months.
The FDD states that it must be delivered at least 14 calendar days before a binding agreement is signed or a payment is made. The federal disclosure framework is available in the FTC Franchise Rule in 16 CFR Part 436.
Why does the build-out create most of the cost uncertainty?
Goldfish Swim School is a specialized pool facility, so Leasehold Improvements cover substantially more than ordinary retail finishes. Item 7 identifies excavation, concrete slabs, structural work, plumbing, electrical systems, heating and cooling, pool construction, pumps, filtration, water heating, chemical controls, safety equipment, and systems that maintain temperature and humidity.
The typical facility size combines with pool construction, utility capacity, local approvals, demolition, wage rates, material prices, and shipping distance to produce the $1.33 million to $2.69 million Leasehold Improvements range.
Sources: 2026 FDD, Item 7, pages 16–19, and Item 8, pages 20–22.
Which fees continue after opening?
The principal ongoing obligations are the Royalty Fee, Brand Fund Contribution, Local Advertising requirement, and Technology Fee. Royalty and Brand Fund payments use the greater of a percentage of gross sales or a monthly minimum, so the minimum is not a ceiling.
The Royalty Fee and Brand Fund bars show minimum dollar thresholds; percentage calculations can produce higher payments. The Technology Fee is a service-level range.
Source: 2026 FDD, Item 6, pages 9–10. Scale maximum: $4,000 per month. The Brand Fund is currently charged at 2% of gross sales and may be increased up to 3% with notice.
| Continuing obligation | Amount or basis | Timing | Important interpretation |
|---|---|---|---|
| Royalty Fee | Greater of $1,250/month or 6% of gross sales for the first 90 days; then greater of $4,000/month or 6% | 5th day of each month | Starts on the earlier of opening or 600 days after signing |
| Brand Fund Contribution | Greater of $450/month or currently 2% of gross sales for first 90 days; then greater of $1,300/month or currently 2%; permitted maximum 3% | 5th day of each month | Same commencement trigger as Royalty Fee; 30 days’ notice before an increase |
| Local Advertising | 2% of gross sales; an Advertising Cooperative may require up to 5% | Quarterly | Cooperative payments receive dollar-for-dollar credit against the local requirement |
| Technology Fee | Currently $700–$1,295 per month | 5th day of each month | Depends on selected and required service level and may rise as costs rise |
| Annual Convention Fee | $500–$2,500 | Upon demand | May be imposed for annual convention registration |
| Ongoing Training | Franchisee and employee travel and attendance expenses; no tuition fee | At each program | Up to three required programs and six total days per year |
The Item 7 Furniture, Fixtures, Equipment, Computers, and Decor estimate includes the Technology Fee for the first three operational months. Additional Funds also include royalties and Brand Fund fees for that three-month period. Those opening-period amounts are already inside the official Item 7 total.
Which costs apply only after a trigger or special event?
Item 6 includes event-driven fees that may never arise in ordinary operation but can become material after a transfer, default, audit, relocation, training problem, supplier request, or insurance lapse.
- Audit Expenses: approximately $1,500 to $5,000 if an audit finds insufficient Local Advertising spending or an underreporting of amounts owed by 3% or more.
- Late Fees: 1.5% per month or the maximum lawful rate, whichever is lower, on overdue or understated amounts.
- Transfer Fee: $2,500 for a transferee already in the System; 50% of the then-current Initial Franchise Fee for a new-system transferee; $10,000 under the Area Development Agreement.
- Renewal Fee and capital work: $10,000 at renewal, plus capital expenditures needed to meet then-current System standards. Item 17 does not state a remodel dollar range.
- Relocation Assistance: $1,500 when franchisor assistance is needed.
- Additional Training or Operations Assistance: currently $600 per day plus expenses; the same daily charge applies to Temporary Management Assistance.
- Insurance replacement: $1,000 to $3,500 if required coverage lapses and the franchisor obtains it, plus unpaid premiums and reasonable expenses.
- Supplier or product approval: actual evaluation costs for a proposed non-approved supplier or product.
- Default damages: Franchise Agreement damages are the lesser of three times the prior 12 months’ Royalty Fee and Brand Fund Contributions or those fees for the remaining term; Area Development Agreement damages are $80,000 per undeveloped Swim School.
- Potential future service fees: Customer Sales Support Services and Construction Management are currently $0 and limited to cost if implemented; Warehousing is currently $0 and may be cost plus a reasonable return not exceeding 10%.
- Actual-cost reimbursements: Customer Service intervention, enforcement, and indemnification can require reimbursement of actual costs, including attorneys’ fees where the agreement applies.
Source: 2026 FDD, Item 6, pages 10–13, and Item 17, pages 48–52.
How does an Area Development Agreement change the upfront cost?
An Area Developer signs the Area Development Agreement and the Franchise Agreement for the first Swim School at the same time. For a two-unit commitment, the non-refundable Development Fee is $70,000: $50,000 for the first Swim School plus $20,000 toward the second. Each additional committed Swim School adds another $20,000 to the Development Fee at signing, and the remaining $20,000 balance for that later school is due when its separate Franchise Agreement is executed.
- Two-unit minimum Development Fee
- $70,000 at Area Development Agreement signing.
- Each additional committed Swim School
- Add $20,000 to the Development Fee when the Area Development Agreement is signed.
- Later Franchise Agreement balance
- Pay the remaining $20,000 Initial Franchise Fee balance when each later Franchise Agreement is signed.
- Official Area Developer total shown in Item 7
- $1,733,263 to $3,816,733 for the first outlet and the disclosed development commitment.
The Area Development Agreement table says the first-outlet investment is shown “less” the Initial Franchise Fee already paid through the Development Fee, but the displayed first-outlet amount matches the full standard Item 7 range. The official Area Developer total is preserved here exactly as disclosed. A prospective developer should request a written reconciliation of the $70,000 Development Fee and first-outlet Item 7 total before payment.
Does the FDD set a liquid-capital or net-worth requirement?
The 2026 FDD does not state a Liquid Capital minimum, Net Worth minimum, or Non-Borrowed Funds threshold in Items 5 through 10. Those concepts are therefore separate from the official $1,663,263 to $3,746,733 Estimated Initial Investment and should not be inferred from it.
Item 10 states that Goldfish Swim School Franchising LLC offers no direct or indirect Financing and does not guarantee a note, lease, or other obligation. Financing approval, lender equity requirements, collateral, and personal guarantees are therefore lender-specific rather than franchisor promises. Source: 2026 FDD, Item 10, page 25.
Ask the franchisor to state its current financial qualification criteria in writing and ask any lender to separate required cash equity from the full project cost. A lender-approved loan does not change the Item 7 total or eliminate lease, construction, and working-capital obligations.
What does the official total not fully resolve?
The Item 7 total is an official estimate for the disclosed format, not a guarantee that every market or site can be delivered within the range. The following items require project-specific verification before the buyer treats the FDD high end as sufficient.
- Property strategy: confirm whether the project is leased, owned, a conversion, or ground-up construction; land and building acquisition are excluded.
- Utility capacity: verify electrical, gas, water, sewer, pool mechanical, ventilation, and humidity-control requirements before lease commitment.
- Water Tap Fees: obtain the local government assessment early because the disclosed range reaches $93,000.
- Landlord contribution: document tenant-improvement allowances and determine whether they are reimbursements, credits, or landlord-controlled work.
- Additional Funds: confirm the three-month payroll and expense assumptions for the specific opening plan. Owner compensation is not identified as an included Additional Funds category.
- Approved Supplier pricing: update quotations for equipment, signage, networking, security software, opening inventory, marketing services, and the required project manager.
- Renewal and transfer condition: budget separately for then-current brand-standard remodeling because the FDD discloses the obligation but not a dollar estimate.
What capital distinction matters most?
The central number is the 2026 Estimated Initial Investment of $1,663,263 to $3,746,733 for one standard Goldfish Swim School. The $50,000 Initial Franchise Fee is only one component; Leasehold Improvements are the dominant cost, and the $75,000 to $350,000 Additional Funds allowance is already included for the first three months. After opening, percentage-based Royalty Fee, Brand Fund Contribution, Local Advertising, and monthly Technology Fee obligations continue. Liquid Capital and Net Worth requirements are not disclosed in the 2026 FDD, while land purchase, property acquisition, and ground-up building construction remain outside Item 7.
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