SafeSplash Franchise Costs, Fees & FDD

Year Business Began: 2014

Franchising Since: 2015

Headquarters: Parker, Colorado

Estimated Number of Units: 120

Franchise Description: SafeSplash Brands, LLC d/b/a Streamline Brands is the franchisor. The franchisor is offering franchises for the use of the trademark “Safesplash Swim School” and related trademarks and service marks, for the operation of a business offering “learn to swim” programs for children and adults, birthday parties, summer camps, other swimming-related activities, and the sale of related products. (The franchisor has discontinued offering franchisees for its SwimLabs and Swimtastic brands.) The franchisor offers four formats of SafeSplash businesses: dedicated location, hosted locations, conversion dedicated locations, and conversion hosted locations.
Training Overview: Before the opening of the SafeSplash business in any of the four formats offered, the franchisor will provide an initial training program throughout the launch process. In addition to the training provided during the launch process, franchisees or their designated manager must complete the franchisor’s on-site training program, called “The Academy,” to its satisfaction and the franchisor encourages franchisees to have their management team attend and complete The Academy program as well. The in-person training program lasts five to ten days per training trip and consists of classroom instruction, on-site training and off-site training. Prior to the training trips in Colorado, the franchisor will conduct online trainings during the launch process to prepare for the trainings that typically occur in Colorado. During the term of the Franchise Agreement, the franchisor will require franchisees to complete an annual recertification training program. The franchisor may present seminars, conventions or continuing development programs for the benefit of franchisees. The franchisee’s attendance at most of these seminars is voluntary. However, franchisees or their designated manager must attend any mandatory seminar, convention or program the franchisor may offer.

Territory Granted: Franchisees will be granted a territory in which to operate their franchised business. The authorized territory for a dedicated location will be approximately a five-mile radius from the site of the franchised business depending upon the demographics and physical geography of the area. It will be identified with a map by boundaries, zip codes or in miles’ radius. The authorized territory for a hosted location will be approximately a two-and-a-half mile radius depending upon the demographics and the physical geography of the area. The franchisor will not grant another SafeSplash business in the authorized territory. However, customers from the authorized territory may purchase services and products from other SafeSplash businesses, SwimLabs businesses or Swimtastic businesses, or directly from the franchisor or its affiliates over the Internet, or in other reserved channels of distribution. As a result, the authorized territory will not be exclusive.

Obligations and Restrictions: Franchisees, or their managing shareholder or partner, are not obligated to participate personally in the direct operation of their franchised businesses so long as a designated business manager, who has completed the initial training program, does so. If franchisees are a corporation or other business entity, or if the franchisee has, in the franchisor’s sole judgment, insufficient experience in a business similar to the franchise or experience in business management in general, then they must nominate a designated business manager having the required experience who will have direct responsibility for all operations of the SafeSplash business and who must own not less than 10% of the corporate or business entity. Franchisees or their designated manager must devote full time and best efforts to the management and operation of the franchised business. Franchisees must sell and offer only those services and products which are authorized by the franchisor, and which meet its standards and specifications. Franchisees must offer all types of services and products specified by the franchisor.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees wish to do so, and they satisfy the required pre-conditions to renewal, the franchisor will offer them the right to obtain an additional 10-year term.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.


Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$37,500	$55,000
Training Expenses	$2,000	$4,000
Rent – Initial Deposit	$0	$15,000
Soil and Architecture	$0	$18,000
Net Leasehold Improvements	$0	$949,800
Furniture, Fixtures, Electronic and Technology Equipment, and Signage	$2,000	$70,000
Retail Inventory	$500	$5,000
Advertising & Marketing	$5,000	$28,900
Insurance	$2,000	$12,000
Professional Services	$1,000	$10,000
Licenses and Permits	$0	$10,000
Additional Funds for Operating Reserve – Three Months	$7,500	$150,000
ESTIMATED TOTAL (without SwimLabs Technology Package)*	$57,500	$1,327,700
SwimLabs Technology Package and Related Improvements	$0	$160,600
ESTIMATED TOTAL (with SwimLabs Technology Package)*	$57,500	$1,487,700

*The estimated initial investment range covers from a new hosted location up to a new dedicated location. See FDD for more details.

 
Other Fees

Type of Fee	Amount
Royalty Fee	6% of gross revenues of the franchised business. (Ranges from 3% to 6% for conversion locations depending on amount of time in operation.)
Enhanced Services Fee	Currently, 10% of gross revenues of the franchised business.
Strategic Marketing and Promotions Fee	Currently, 2% of gross revenues.
Hosted Location Fee	Currently ranges from 10% to 25% of gross revenues as set by the hosted location owner or the base rent of $4,000 (whichever is greater), depending on the agreement the franchisor reaches with each respective hosted location owner.
Cooperative Advertising	Proportional share to be determined, but not to exceed 2% of gross revenues.
Technology Fee	The current fee is $400 per month or 1% of gross revenues per month.
SwimLabs Client Cloud Portal Access Fee	The current fee per year is $125 per system.
Inventory Purchases	Will vary based on needs.
Extension Fee	10% of the then-current initial franchise fee.
Successor Franchise Fee	10% of the then-current initial franchise fee.
Audit Fee	Cost of inspection or audit, including travel, lodging, meals, salaries and other expenses (including any contingent fee owed to the auditor of the inspecting or auditing personnel).
Transfer Fee	30% of the then-current initial franchise fee.
Interest	Lesser of 1.5% per month or highest rate of interest allowed by law.
Late Payment Fee	$250 per week.
Late Reporting Fee	$100 per late record or document.
Improper Sales Reporting Fee	125% of the royalties, enhanced services fees, strategic marketing and promotions fees, and other fees due related to the unrecorded sales transaction.
Satellite Location Fee	An amount equal to 20% of the then-current initial franchise fee for a dedicated location or hosted location, depending on whether the satellite location is tied to a dedicated location or a hosted location.
Indemnification	Will vary under circumstances.
Cost of Testing and Investigation	Will vary depending on investigation necessary.
Cost of Enforcement or Defense	All costs including accounting and attorney’s fees.
The Academy Training for Replacement Trainees	Currently, not charged.
Requested Additional Assistance	Currently, not charged.
Meetings, Seminars, Conferences or Programs	Currently, up to $1,000 per attendee per event.
Relocation Fee	$5,000

The above information has been compiled from the FDD of SafeSplash. Year of FDD: 2025.
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