Water BabiesFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Water Babies franchise requires a total initial investment of $108K – $153K, including a $55K franchise fee and an ongoing 10.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $108K – $153K
- 31st pct Education
- Avg gross sales
- N/A
- 47th pct Education
- Royalty
- 10.0%
- 46th pct Education
- Units
- 2
- 8th pct Education
- SBA default
- N/A
Quick verdict · Education · color = vs category peers
Green = >15% above Education avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $108K – $153K including a $55K franchise fee, 10.0% ongoing royalty.
- Item 19 disclosed $995K average from 2 company-owned outlets. This is franchisor-operated data, not franchisee results.
- Verdict D (Below Average) with a risk score of 70/100.
- Item 19 reports "Financial Performance of company-owned territories" instead of annual gross sales. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Water Babies US Franchise LLC
- Parent company
- Water Babies US TopCo LLC
- Incorporated in
- DE
- HQ
- 115 E Pennsylvania Ave, Suite 16, Southern Pines, NC 28387
- Auditor
- Plante & Moran, PLLC
- Audited financials
Overview
About
Water Babies franchisees operate infant and toddler swim instruction centers, offering swimming lessons, water safety training, and aquatic classes to young children. Day-to-day operations include managing instructors, scheduling classes, facility maintenance, customer acquisition, and managing parent relationships while maintaining strict safety protocols for vulnerable populations.
- CEO
- Howard Harrison
- Headquarters
- NC
- Founded
- 2025
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $55K | $55K |
| Working capital (3–6 mo) | $15K | $31K |
| Equipment, build-out, other | $38K | $68K |
| Total initial investment | $108K | $153K |
Source: Water Babies 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $108K – $153K
- Better than avg vs category
- Liquid capital req'd
- $15K – $31K
- Better than avg vs category
- Franchise fee
- $55K – $55K
- Near category avg vs category
- Royalty
- 10.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 12.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $500 |
| Transfer fee | $15K |
| Renewal fee | $6K |
| Total fee load | 12.0% of rev |
Financial Performance
Item 19 disclosed $995K average from 2 company-owned outlets. This is franchisor-operated data, not franchisee results.
vs Education averages
How Water Babies Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 30 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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Extremely early-stage franchise with minimal operating units, undisclosed financials, and unproven scalability creates substantial risk despite reasonable per-unit profitability claims.
Audited financials (Item 21)
Yes · Plante & Moran, PLLC
Score breakdown · what drove the 70 / 100 rating
- 01MEDOnly 2 existing units suggests extremely limited franchise system with unknown growth trajectory and minimal peer support network
- 02HIGHNo Item 19 financial disclosure (Going Concern = False) prevents validation of claimed $994,984.50 average revenue across entire system
- 03MINORTiered royalty structure (10%-8%) implies franchisor revenue heavily dependent on franchisee sales success, creating potential misalignment if units underperform
- 04MINORSignificant capital investment range ($107,710-$153,242) relative to only 2 operating units raises questions about unit economics and franchisee profitability claims
- 05MEDUnknown unit growth rate signals potential stagnation; no disclosed expansion pipeline or franchisee recruitment success metrics
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Population-based |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | North Carolina |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 55 hrs
- On-the-job training
- 56 hrs
- POS system
- Ada
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Ada
Item 20 · call current owners
Franchisee Contacts
34 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Water Babies · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Water Babies franchise?
The total investment to open a Water Babies franchise ranges from $108K – $153K, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Water Babies franchise owners earn?
Water Babies does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Water Babies's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Water Babies (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Water Babies franchise locations are there?
As of their most recent FDD filing, Water Babies has 2 total units in the United States, including 0 franchised units and 2 company-owned units.
Is Water Babies a good franchise to buy?
FranchiseVerdict rates Water Babies as a D-grade franchise with a risk score of 70 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.