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British Swim School Franchise Costs & Fees

Date of Incorporation: 1981
Franchising Since: 2011
U.S. Headquarters: Sunrise, Florida
Country of Origin: England

Business Description: British Swim Centers Franchising, LLC is the franchisor. British Swim School businesses operate a swimming and water-survival instruction program that focuses on survival skills, stroke development, breathing techniques and skill coordination by offering private and group lessons for individuals of all ages and other related services and products under the British Swim School name and marks.

Franchise Offer: The franchisor offers and grants franchises to establish, operate and promote a swimming and water-survival instruction program that focuses on survival skills, stroke development, breathing techniques and skill coordination by offering private and group lessons for individuals of all ages and other services and products it may authorize.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee franchisees’ promissory notes, mortgages, leases or other obligations.

Training and Assistance: The franchisor will train franchisees (or their designated manager) on operating a British Swim School Business and provide 1 of their swim instructors (if franchisees will not be the trainer and manager of the swim instructors, then this person must be the swim instructor manager) training on teaching swim lessons, both at the franchisor’s expense through our initial training program. Currently, the franchisor provides up to 12 days initial training, which shall include the swim instructor training. Franchisees (or their designated manager) may request additional training at the end of the initial training program if their attendees do not feel sufficiently trained in the operation of a British Swim School Business. The franchisor and franchisees will jointly determine the duration of this additional training. The franchisor reserves the right to charge franchisees its then-current training fee. The franchisor may require franchisees (or their designated manager), and/or certain other employees, including swim instructors, of their British Swim School Business to attend various training courses, meetings, conferences and seminars, which may include an annual meeting of franchise owners, at the times and locations that it designates.

Territory: When franchisees sign the Franchise Agreement, the franchisor will grant them an area within which it will not operate or grant a franchise for the operation of a British Swim School Business. A Territory will typically consist of an area defined by one or more zip codes with at least 2 pools potentially available and a population ranging from approximately 15,000 to 25,000 children under age 12, as determined by the most recent U.S. census data; however, depending on the demographics, population, income levels and other factors, the Territory may be smaller or larger. Franchisees will not receive an exclusive territory. Franchisees may face competition from other British Swim School Businesses located outside the Territory or from other channels of distribution or competitive brands that the franchisor controls.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One additional 10-year term is available, if franchisees meet certain requirements.

Obligations and Restrictions: If franchisees are an entity, they must identify one of the owners who is a natural person with at least 51% ownership interest and voting power in the franchise and who will have the authority of a chief executive officer (the Designated Manager). Franchisees (or their Designated Manager) are responsible for the day to day management, direction and control of the British Swim School Business, subject to the terms and conditions of the Franchise Agreement. Franchisees must offer and sell all services and products that the franchisor periodically specifies for British Swim Schools, including Swim School Subscriptions for swim lessons under the terms and conditions that it designates. Franchisees must offer and sell only approved products and services from the Pools of their British Swim School Business.

Estimated Number of Units: 30

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $39,500 $150,000
Pool Security Deposit $0 $1,000
Pool Usage Fee – 3 months $1,500 $4,500
Pool Equipment $400 $900
Signage $0 $3,000
Pre-Marketing and Grand Opening Advertising $10,000 $15,000
Opening Inventory and Supplies $5,000 $7,500
Training: Travel and Living Expenses $2,000 $6,000
Accountant and Legal Fees $300 $1,500
Insurance Premium $2,400 $1,500
Computer System $500 $1,500
Office Security Deposit $500 $2,000
Office Rent, Office Furniture, Fixtures and Equipment – 3 Months $0 $1,500
First 3 Months of Aquatics Manager $7,50 $11,250
Additional Funds (first 3 months) $5,000 $15,000
ESTIMATED TOTAL $74,700 $223,850
Other Fees
Type of Fee Amount
Royalty 10% of Gross Sales.
Minimum Royalty The difference between the amount of Royalty payments made by franchisees and the threshold amount of Royalty payable to the franchisor in each 12 month period..
Marketing Fund Contribution Up to 2% of weekly Gross Sales.
Local Advertising Cooperative Contribution An amount determined by the members of the Local Advertising Cooperative.
Technology Fee Then current charge, currently $45 to $250 per month.
Additional Training Fee Then current charge, currently $500 per person per day, plus expenses.
Swim Instructor Training Fee Then current charge, currently $300 per person per day, plus expenses.
Transfer Fee 50% of our then-current initial franchise fee.
Audit Expenses $100 per occurrence, plus lesser of the daily equivalent of 18% per year simple interest or the highest rate allowed by law.
Late Payment $100 per occurrence, plus lesser of the daily equivalent of 18% per year simple interest or the highest rate allowed by law.
Product Purchases The then-current product prices.
Non-Sufficient Funds Fee $100 per occurrence.
Marketing Materials Cost of production, shipping, handling and storage of materials.
Insurance Reimbursement of the franchisor’s costs plus a 20% administration charge.
Professional Fees and Expenses Will vary under circumstances.
Indemnification Will vary under circumstances.
Additional Training or Assistance Fees Then current fee (currently $500 per attendee per day for additional training).
Mystery Shopper Fee Will vary under circumstances, but the franchisor estimates the cost of such inspections will not exceed $200 per inspection.
Reimbursement for Unused Subscription Refunds Amount of customer refund, plus 5% interest (or highest commercial contract interest rate allowed by law).
Taxes Varies.
Liquidated Damages Will vary under circumstances.

The above information has been taken from the FDD of British Swim School. Year of FDD: 2015

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