In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a British Swim School franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a British Swim School franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned British Swim School outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the British Swim School franchise opportunity

Section V – Presentation and analysis of British Swim School’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, high, and low revenue for the 143 British Swim School franchise outlets open and operating for at least six months in 2023, grouped by class (pre-2019, 2019, 2020, 2021, 2022, and 2023)

• 2023 average, median, high, and low number of customers for the 143 British Swim School franchise outlets open and operating for at least six months in 2023, grouped by class (pre-2019, 2019, 2020, 2021, 2022, and 2023)

• 2021, 2022, and 2023 average and median gross revenue for the 143 British Swim School franchise outlets open and operating for at least six months in 2023, grouped by class (pre-2019, 2019, 2020, 2021, 2022, and 2023)

• 2023 average gross revenue, cost of sales, gross profit, operating expenses, and net operating income for the 102 British Swim School U.S. franchise outlets open and operating for at least nine months in 2023, for which income statement information was provided

• 2021, 2022, and 2023 average, median, high, and low number of pools operated per franchise outlet and revenue per contracted pool for contracted pools where franchisees provided services for more than 30 days in the applicable calendar year, as captured in the British Swim School POS system

Section VI – Key ratios, comparables, computations, and analyses for the British Swim School franchise opportunity (exclusive content for Platinum subscribers)

Section I – British Swim School Franchise Costs

• British Swim School franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $59,500
• Mailer Program Set-Up Fee:  $1,000
• Mailing List Fee:  $250
• Postcard Fees:  $3,870
• SEO Fees:  $3,600
• Digital Marketing Fees:  $17,000
• Pool Security Deposit:  $0 to $1,000
• Pool Usage Fee – 3 Months:  $1,500 to $12,000
• Opening Inventory (pool equipment, training supplies, learning aids):  $3,050 to $6,100
• Signage:  $250 to $750
• Training – Travel and Living Expenses:  $1,500 to $5,000
• Accountant and Legal Fees:  $300 to $1,000
• Insurance Premium:  $2,400 to $5,000
• Computer System:  $0 to $3,500
• Office Security Deposit:  $0 to $1,500
• Office Rent, Office Furniture, Fixtures, and Equipment – 3 Months:  $0 to $4,500
• Technology Fee – 3 Months:  $750
• Pre-Marketing and Grand Opening Advertising:  $2,500 to $3,000
• First 3 Months of Aquatics Lead:  $7,500 to $10,500
• Additional Funds – 3 Months:  $9,000 to $15,000
• Total Estimated British Swim School Franchise Costs:  $113,970 to $154,820

Section II – British Swim School’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• British Swim School’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $59,500

• Royalty:  10% of Gross Sales

• Marketing Fund Contribution:  2% of Gross Sales

• Local Advertising Expenditure:  $6,000 to $15,000 per calendar year

• Digital Advertising Program Fees, Consisting of SEO Fee and Digital Marketing Fee:  SEO Fee: currently $300 per month ($3,600 per year); Digital Marketing Fee: currently, $1,416.66 per month ($17,000 per year)

Section III – Number of Franchised and Company-Owned British Swim School Outlets

Franchised

2021

• Outlets at the Start of the Year:  105
• Outlets at the End of the Year:  112
• Net Change:  +7

2022

• Outlets at the Start of the Year:  112
• Outlets at the End of the Year:  136
• Net Change:  +24

2023

• Outlets at the Start of the Year:  136
• Outlets at the End of the Year:  189
• Net Change:  +53

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the British Swim School Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the British Swim School Franchise (Item 19, 2024 FDD)

• British Swim School began franchise operations in 2011 under the franchisor’s predecessor, BSCF, after operating as a non-franchise business in both the United Kingdom and the United States for almost 30 years. By leveraging available commercial pools instead of constructing pools, the business model supports a lower initial investment strategy and offers agility and scalability to enable franchise business owners to rapidly meet demand and changing demographics.

• Upon launching franchise operations in 2011, BSCF operated a number of corporate-owned outlets in addition to its franchised outlets. Over time, BSCF transitioned to a franchise-only business model. As of December 31, 2023, British Swim School had 107 U.S.-based franchisees that owned and actively operated 188 outlets across 25 states.

Part 1 – 2023 Performance – Revenue

Class of Pre-2019

• Number of Outlets:  72
• 2023 Average:  $608,655
• Number and Percentage Above Average:  26 (36%)
• Median:  $476,334
• High Outlet:  $2,948,221
• Low Outlet:  $47,181
• 2022 Average:  $523,640
• Year-Over-Year Growth (2022-2023):  16%

Class of 2019

• Number of Outlets:  6
• 2023 Average:  $759,880
• Number and Percentage Above Average:  3 (50%)
• Median:  $640,853
• High Outlet:  $1,803,339
• Low Outlet:  $198,621
• 2022 Average:  $591,622
• Year-Over-Year Growth (2022-2023):  28%

Class of 2020

• Number of Outlets:  1
• 2023 Average:  $1,255,683
• Number and Percentage Above Average:  –
• Median:  $1,255,683
• High Outlet:  $1,255,683
• Low Outlet:  $1,255,683
• 2022 Average:  $1,105,310
• Year-Over-Year Growth (2022-2023):  14%

Class of 2021

• Number of Outlets:  7
• 2023 Average:  $569,970
• Number and Percentage Above Average:  2 (29%)
• Median:  $363,063
• High Outlet:  $2,156,199
• Low Outlet:  $72,003
• 2022 Average:  $570,719
• Year-Over-Year Growth (2022-2023):  0%

Class of 2022

• Number of Outlets:  19
• 2023 Average:  $244,042
• Number and Percentage Above Average:  6 (32%)
• Median:  $159,531
• High Outlet:  $911,540
• Low Outlet:  $41,275
• 2022 Average:  $151,042
• Year-Over-Year Growth (2022-2023):  62%

Class of 2023

• Number of Outlets:  38
• 2023 Average:  $187,319
• Number and Percentage Above Average:  16 (42%)
• Median:  $144,664
• High Outlet:  $559,968
• Low Outlet:  $7,442
• 2022 Average:  –
• Year-Over-Year Growth (2022-2023):  N/A

Part 2 – 2022 Performance – Customers

Class of Pre-2019

• Number of Outlets:  72
• 2023 Average:  1,415
• Number and Percentage Above Average:  29 (40%)
• Median:  1,221
• High Outlet:  4,539
• Low Outlet:  19
• 2022 Average:  1,368
• Year-Over-Year Growth (2022-2023):  3%

Class of 2019

• Number of Outlets:  6
• 2023 Average:  1,586
• Number and Percentage Above Average:  2 (33%)
• Median:  1,195
• High Outlet:  3,062
• Low Outlet:  543
• 2022 Average:  1,464
• Year-Over-Year Growth (2022-2023):  8%

Class of 2020

• Number of Outlets:  1
• 2023 Average:  2,782
• Number and Percentage Above Average:  –
• Median:  2,782
• High Outlet:  2,782
• Low Outlet:  2,782
• 2022 Average:  2,770
• Year-Over-Year Growth (2022-2023):  0%

Class of 2021

• Number of Outlets:  7
• 2023 Average:  1,236
• Number and Percentage Above Average:  2 (29%)
• Median:  1,024
• High Outlet:  3,480
• Low Outlet:  335
• 2022 Average:  1,243
• Year-Over-Year Growth (2022-2023):  -1%

Class of 2022

• Number of Outlets:  19
• 2023 Average:  612
• Number and Percentage Above Average:  6 (30%)
• Median:  454
• High Outlet:  1,592
• Low Outlet:  178
• 2022 Average:  472
• Year-Over-Year Growth (2022-2023):  30%

Class of 2023

• Number of Outlets:  38
• 2023 Average:  498
• Number and Percentage Above Average:  17 (45%)
• Median:  449
• High Outlet:  1,297
• Low Outlet:  37
• 2022 Average:  –
• Year-Over-Year Growth (2022-2023):  N/A

• “Gross Revenue and Customer Performance” is based on the 143 outlets open and operating for at least six months in 2023.

• A “class” consists of the franchised outlets that signed franchise agreements during the stated year and were open and operating for at least six months in 2023.

• A “customer” is one unique individual.

Part 3 – Outlet Class Gross Revenue Performance, 2021-2023

2021

Class of Pre-2019

• Average Gross Revenue:  $376,131
• Number and Percentage Above Average:  27 (42%)
• Median Gross Revenue:  $338,177

Class of 2019

• Average Gross Revenue:  $405,459
• Number and Percentage Above Average:  1 (20%)
• Median Gross Revenue:  $103,608

Class of 2020

• Average Gross Revenue:  $726,879
• Number and Percentage Above Average:  –
• Median Gross Revenue:  $726,879

Class of 2021

• Average Gross Revenue:  $292,753
• Number and Percentage Above Average:  2 (29%)
• Median Gross Revenue:  $112,135

2022

Class of Pre-2019

• Average Gross Revenue:  $523,640
• Number and Percentage Above Average:  23 (33%)
• Median Gross Revenue:  $441,952

Class of 2019

• Average Gross Revenue:  $591,622
• Number and Percentage Above Average:  2 (33%)
• Median Gross Revenue:  $413,715

Class of 2020

• Average Gross Revenue:  $1,105,310
• Number and Percentage Above Average:  –
• Median Gross Revenue:  $1,105,310

Class of 2021

• Average Gross Revenue:  $570,719
• Number and Percentage Above Average:  2 (29%)
• Median Gross Revenue:  $282,481

Class of 2022

• Average Gross Revenue:  $151,042
• Number and Percentage Above Average:  6 (32%)
• Median Gross Revenue:  $100,585

2023

Class of Pre-2019

• Average Gross Revenue:  $608,655
• Number and Percentage Above Average:  26 (36%)
• Median Gross Revenue:  $476,334

Class of 2019

• Average Gross Revenue:  $759,880
• Number and Percentage Above Average:  3 (50%)
• Median Gross Revenue:  $640,853

Class of 2020

• Average Gross Revenue:  $1,255,683
• Number and Percentage Above Average:  –
• Median Gross Revenue:  $1,255,683

Class of 2021

• Average Gross Revenue:  $569,970
• Number and Percentage Above Average:  2 (29%)
• Median Gross Revenue:  $363,063

Class of 2022

• Average Gross Revenue:  $244,042
• Number and Percentage Above Average:  6 (30%)
• Median Gross Revenue:  $159,531

Class of 2023

• Average Gross Revenue:  $187,319
• Number and Percentage Above Average:  16 (42%)
• Median Gross Revenue:  $144,664

• “Class Gross Revenue Performance” is based on the 143 outlets open and operating for at least six months in 2023.

• A “class” consists of the franchised outlets that signed franchise agreements during the stated year and were open and operating for at least six months in 2023.

Part 4 – January 1, 2023 to December 31, 2023 Income Statement Performance

Average

Gross Revenue:  $544,754 (100%)

Cost of Sales

• Labor:  $194,152 (36%)
• Pool Rental:  $111,134 (20%)
• Total Cost of Sales:  $305,286 (56%)

Gross Profit:  $239,468 (44%)

Operating Expenses

• Royalty:  $54,475 (10%)
• Marketing Fee:  $10,895 (2%)
• IT:  $5,292 (1%)
• Advertising and Promotion:  $18,462 (3%)
• Office Supplies/Expense:  $4,079 (1%)
• Professional Fees:  $4,706 (1%)
• Merchant and Bank Fees:  $13,538 (2%)
• Training:  $2,339 (0%)
• Insurance:  $7,361 (1%)

Total Operating Expenses:  $121,147 (22%)

Net Operating Income:  $118,322 (22%)

• The table above is based on the 102 U.S. outlets open and operating for at least nine months in 2023, for which income statement information was provided. British Swim School has chosen to use outlets that were operating for at least nine months because of the higher-than-usual expenses for the first three months of an outlet’s operation.

• There are 32 multi-outlet franchisees meeting the operating criteria as defined above whose cost of sales and expense line items are divided proportionally across their respective outlets based on the revenue generated in each outlet. These 32 multi-outlet franchisees did not report financial information for each outlet, rather they reported consolidated financial information for their franchise entity as a whole.

• Unless noted below, all Cost of Sales and Operating Expenses were self-reported by franchisees. British Swim School has not audited or otherwise independently verified the data.

• Royalty is calculated at 10% of aggregated Gross Revenue, per franchise agreement.

• Marketing Fee is calculated at 2% of aggregated Gross Revenue, per franchise agreement.

• Net Operating Income is calculated before owner’s compensation.

• This table excludes other expenses that you may incur and that are not included in the information presented above. Such expenses may include, but are not limited to, expenses associated with office locations (owned or leased), personal franchise owner expenses (such as health care, vehicle, travel/entertainment, and retirement expenses), aggregated franchise owner financial expenses (such as interest, amortization, and depreciation), miscellaneous expenses not essential to running a British Swim School business, other income, and owner’s compensation.

Part 5 – Additional Performance Metrics

Contracted Pools per Franchise Outlet

• For calendar year 2023, franchise business owners contracted with an average of 2.3 pools per outlet. The median number of pools contracted was 2.0, with a low of 1 and high of 10. Contracted Pool data are based on 361 contracted pools where franchisees provided services for more than 30 days in calendar year 2023, as captured in the British Swim School POS system.

• For calendar year 2022, franchise business owners contracted with an average of 2.0 pools per outlet. The median number of pools contracted was 2.0, with a low of 1 and high of 7. Contracted Pool data are based on 252 contracted pools where franchisees provided services for more than 30 days in calendar year 2022, as captured in the British Swim School POS system.

• For calendar year 2021, franchise business owners contracted with an average of 2.1 pools per outlet. The median number of pools contracted was 2.0, with a low of 1 and high of 8. Contracted Pool data are based on 199 contracted pools where franchisees provided services for more than 30 days in calendar year 2021, as captured in the British Swim School POS system.

Revenue per Contracted Pool

• For calendar year 2023, contracted pools generated an average revenue of $192,266, with a median revenue of $113,644. The low revenue for a contracted pool was $480, while the high revenue for a contracted pool was $1,296,857.

• For calendar year 2022, contracted pools generated an average revenue of $212,634, with a median revenue of $122,907. The low revenue for a contracted pool was $208, while the high revenue for a contracted pool was $1,484,702.

• For calendar year 2021, contracted pools generated an average revenue of $171,289, with a median revenue of $111,687. The low revenue for a contracted pool was $234, while the high revenue for a contracted pool was $1,002,604.

• Some outlets have sold and/or earned these amounts. Your individual results may differ. There is no assurance that you will sell as much or earn as much.

Section VI – British Swim School Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️