FranchiseVerdict
Goldfish Swim School logo
FV-01075·STRONGExcellent95

Goldfish Swim School

Education - Tutoring & Test PrepFranchising since 2008Website
Investment
$1.7M – $3.7M
99th pct Tutoring & Te…
Avg revenue
$2.0M
50th pct Tutoring & Te…
Royalty
Units
199
86th pct Tutoring & Te…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $1.7M – $3.7M including a $50K franchise fee.
  • Average unit revenue of $2.0M/year (median $1.8M). Estimated payback in 4.8 years.
  • Rated STRONG with a risk score of 24/100. SBA loan default rate of 0.0% across 162 loans (below the industry average).
  • System growing at 2390% CAGR over 3 years with 199 total units — strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Goldfish Swim School Franchising LLC
Incorporated in
Michigan
HQ
2701 Industrial Row Drive, Troy, Michigan 48084
Auditor
Plante & Moran, PLLC
Audited financials
Franchisor revenue
$26.8M
vs $30.5M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Goldfish Swim School unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $1,994,169
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: education
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $1.7M–$3.7M
Working capital
$
FDD reports $75K–$350K

Unlevered ROIC · per unit

10%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$299K
EBITDA margin
15.0%
Total invested
$2.9M
Payback
117 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Goldfish Swim School units return on equity?

Edit assumptions

Equity IRR · 5-yr

33.0%

4.16× MOIC

Year-1 DSCR

2.45×

EBITDA ÷ debt service

Equity required

$6.2M

on $16.0M purchase

Total debt

$9.8M

SBA $5.0M + senior + seller note

SBA 7(a) request ($8.0M) exceeds the $5M program cap. Excess capped automatically; backfill via conventional or equity.

Overview

About

Franchisees operate swim schools providing swim lessons, water safety training, and aquatic programs for infants through children. Day-to-day operations include managing certified swim instructors, scheduling classes, maintaining pool facilities (chlorine, temperature, safety compliance), handling member enrollment/billing, and managing customer service across multiple daily class sessions.

CEO
Chris McCuiston
Founded
2008
FDD year
2026
States available
40

Item 7 · what it costs

The Vitals

Total investment
$1.7M – $3.7M
All-in to open one unit
Liquid capital
$75K – $350K
Cash you must have on hand
Franchise fee
$50K
Royalty
the greater of $1,250 per month or 6% of gross sales for …
Ad fund
2.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical
Payback period
4.8 yrs
From v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$2.0M
Per unit, per year
Median gross sales
$1.8M
Item 19 type
Actual
Sample size
169 units
vs category median 12 · large
Range (low → high)
$529K$6.4M
Cohort dispersion
Transparency
10 / 5
vs category median 4 / 5 · above
Revenue rank50th
vs Education - Tutoring & Test Prep peers
Investment cost rank99th
Lower investment ranks lower (better)
Royalty rate rank65th
Lower royalty = lower percentile (better)
Unit count rank86th
vs Education - Tutoring & Test Prep peers
Risk score rank0th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
199
Opened
23
Last reporting year
Closed
1
Turnover rate
0.5%
Company-owned
7
Corporate units in the system
% franchised
97%
vs corporate-owned
Net growth (yr3)
+11.6%
Net unit change last year
3-yr CAGR
+23.9%
Compounded over last 3 years
2024
192+22
Franchised units
2025
172
Franchised units
2026
155
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 10 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Available · 10 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
162
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

24
Risk · 0-100
STRONG24 / 100

Goldfish presents moderate risk: high capital requirements, aggressive royalties, and unvalidated financial claims in a labor-intensive, seasonally-sensitive market require thorough franchisee validation.

Score breakdown · what drove the 24 / 100 rating

  1. 01MINORHigh initial investment ($1.66M-$3.75M) with moderate unit growth (11.6% YoY) creates longer payback period risk
  2. 02MINORDual-tier royalty structure (greater of $1,250/mo or 6%) is aggressive; at $1.99M avg revenue, 6% royalty = ~$119,400/year in perpetuity
  3. 03MINORAverage net income of $560,524 on $1.99M revenue (28% margin) appears optimistic for swim instruction (labor-intensive, seasonal demand, facility overhead)
  4. 04MEDNo Item 19 financial performance representations disclosed; cannot validate average revenue/income claims independently
  5. 05MINORModerate unit growth (11.6% YoY on 199 units = ~23 new locations) suggests market saturation or franchisee satisfaction plateau

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Area of Primary Responsibility
Protected territory
Yes
Initial term
15 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Michigan

Item 11

Training & Operations

Classroom training
82 hrs
On-the-job training
34 hrs
POS system
iClassPro Enterprise Portal
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

15 numbers

Locked
(517) 381-••••
MI
(651) 539-••••
MN
(217) 782-••••
IL

One-time purchase · CSV download · Validation questions included

FDD download

Goldfish Swim School · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above