British Swim School: $508K Average Sales vs. $110K-$146K Franchise Cost

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 2023 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 2023 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 2020, 2021, and 2022, based on Item 20 of the company’s 2023 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 2023 FDD, including information on the:

• 2022 average, median, high, and low revenue for the 107 British Swim School franchise territories open and generating revenue for at least six months in 2022, grouped by class (pre-2016, 2016, 2017, 2018, 2019, 2020, 2021, and 2022)

• 2022 average, median, high, and low number of customers for the 107 British Swim School franchise territories open and generating revenue for at least six months in 2022, grouped by class (pre-2016, 2016, 2017, 2018, 2019, 2020, 2021, and 2022)

• 2020-2021, 2021-2022, and 2020-2022 revenue growth for the 107 British Swim School franchise territories open and generating revenue for at least six months in 2022, grouped by class (pre-2016, 2016, 2017, 2018, 2019, 2020, and 2021)

• 2022 average gross revenue, cost of sales, gross profit, operating expenses, and net operating income for the 83 British Swim School U.S. territories open and generating revenue for at least nine months in 2022, for which income statement information was provided

• 2020, 2021, and 2022 average, median, high, and low number of pools operated per franchise territory 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 2023 FDD:

• Initial Franchise Fee:  $55,000
• Mailer Program Set-Up Fee:  $1,000
• Mailing List Fee:  $300 to $500
• Postcard Fees:  $13,180
• SEO Fees:  $3,600
• Digital Marketing Fees:  $11,000
• Pool Security Deposit:  $0 to $1,000
• Pool Usage Fee – 3 Months:  $1,500 to $9,000
• 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 $4,000
• 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:  $660
• 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:  $110,240 to $146,790

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 2023 FDD:

• Initial Franchise Fee:  $55,000

• Royalty:  10% of Gross Sales

• Marketing Fund Contribution:  2% of Gross Sales

• Local Advertising Expenditure:  $5,000 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, $916.66 per month ($11,000 per year)

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

Franchised

2020

• Outlets at the Start of the Year:  106
• Outlets at the End of the Year:  106
• Net Change:  0

2021

• Outlets at the Start of the Year:  106
• Outlets at the End of the Year:  113
• Net Change:  +6

2022

• Outlets at the Start of the Year:  113
• Outlets at the End of the Year:  138
• Net Change:  +25

Company-Owned

2020

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

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

Section IV – News Updates on the British Swim School Franchise

• British Swim School Opens New Location in High Park on September 4

• British Swim School Opens Two New Locations at Local Elementary Schools

• British Swim School Now Open at Park Place in Barrie

• British Swim School Celebrates Strongest Year on Record

• British Swim School Ranked No. 248 on Entrepreneur’s 2024 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the British Swim School Franchise (Item 19, 2023 FDD)

• British Swim School presents a financial performance representation including the past performance of outlets after and during the COVID-19 pandemic. To slow the spread of COVID-19, all British Swim School Franchised Businesses closed in early March 2020. The majority of the Franchised Businesses were able to reopen and operate after June 1, 2020, with significant month-over-month growth to year-end and throughout 2021, reflecting the essential nature of the services provided and the franchisees’ ability to deliver services in a safe and healthy manner.

• 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 territories in addition to its franchised territories. Over time, BSCF transitioned to a franchise-only business model. As of December 31, 2022, British Swim School had 65 U.S.-based franchise business entities that owned and actively operated 138 unique territories across 23 states.

Part 1 – 2022 Performance – Revenue

All Pre-2016 Franchise Locations

• Number of Territories:  24
• 2022 Average:  $621,656
• Number and Percentage Above Average:  7 (29%)
• Median:  $457,823
• High Territory:  $1,668,161
• Low Territory:  $87,069
• 2021 Average:  $456,398
• Year-Over-Year Growth (2021-2022):  36%

Class of 2016

• Number of Territories:  11
• 2022 Average:  $333,592
• Number and Percentage Above Average:  6 (55%)
• Median:  $344,988
• High Territory:  $836,488
• Low Territory:  $49,758
• 2021 Average:  $220,764
• Year-Over-Year Growth (2021-2022):  51%

Class of 2017

• Number of Territories:  20
• 2022 Average:  $688,121
• Number and Percentage Above Average:  7 (35%)
• Median:  $524,570
• High Territory:  $2,966,411
• Low Territory:  $114,279
• 2021 Average:  $436,843
• Year-Over-Year Growth (2021-2022):  58%

Class of 2018

• Number of Territories:  18
• 2022 Average:  $390,991
• Number and Percentage Above Average:  7 (39%)
• Median:  $273,408
• High Territory:  $1,484,702
• Low Territory:  $31,349
• 2021 Average:  $301,707
• Year-Over-Year Growth (2021-2022):  30%

Class of 2019

• Number of Territories:  6
• 2022 Average:  $627,016
• Number and Percentage Above Average:  2 (33%)
• Median:  $423,432
• High Territory:  $1,763,680
• Low Territory:  $185,129
• 2021 Average:  $361,869
• Year-Over-Year Growth (2021-2022):  73%

Class of 2020

• Number of Territories:  1
• 2022 Average:  $1,125,995
• Number and Percentage Above Average:  1 (100%)
• Median:  $1,125,995
• High Territory:  $1,125,995
• Low Territory:  $1,125,995
• 2021 Average:  $732,664
• Year-Over-Year Growth (2021-2022):  54%

Class of 2021

• Number of Territories:  7
• 2022 Average:  $593,746
• Number and Percentage Above Average:  2 (29%)
• Median:  $302,965
• High Territory:  $2,182,476
• Low Territory:  $78,724
• 2021 Average:  $273,114
• Year-Over-Year Growth (2021-2022):  117%

Class of 2022

• Number of Territories:  20
• 2022 Average:  $173,580
• Number and Percentage Above Average:  8 (40%)
• Median:  $121,521
• High Territory:  $700,123
• Low Territory:  $26,366
• 2021 Average:  $ –
• Year-Over-Year Growth (2021-2022):  N/A

• “Gross Revenue” is based on the 107 territories open and generating revenue for at least six months in 2022.

Part 2 – 2022 Performance – Customers

All Pre-2016 Franchise Locations

• Number of Territories:  24
• 2022 Average:  887
• Number and Percentage Above Average:  6 (25%)
• Median:  656
• High Territory:  2,899
• Low Territory:  163
• 2021 Average:  757
• Year-Over-Year Growth (2021-2022):  17%

Class of 2016

• Number of Territories:  11
• 2022 Average:  543
• Number and Percentage Above Average:  5 (45%)
• Median:  515
• High Territory:  1,203
• Low Territory:  82
• 2021 Average:  418
• Year-Over-Year Growth (2021-2022):  30%

Class of 2017

• Number of Territories:  20
• 2022 Average:  927
• Number and Percentage Above Average:  9 (45%)
• Median:  908
• High Territory:  2,689
• Low Territory:  276
• 2021 Average:  710
• Year-Over-Year Growth (2021-2022):  31%

Class of 2018

• Number of Territories:  18
• 2022 Average:  592
• Number and Percentage Above Average:  8 (44%)
• Median:  392
• High Territory:  1,703
• Low Territory:  57
• 2021 Average:  524
• Year-Over-Year Growth (2021-2022):  13%

Class of 2019

• Number of Territories:  6
• 2022 Average:  857
• Number and Percentage Above Average:  2 (33%)
• Median:  550
• High Territory:  2,105
• Low Territory:  362
• 2021 Average:  504
• Year-Over-Year Growth (2021-2022):  70%

Class of 2020

• Number of Territories:  1
• 2022 Average:  1,580
• Number and Percentage Above Average:  1 (100%)
• Median:  1,580
• High Territory:  1,580
• Low Territory:  1,580
• 2021 Average:  1,039
• Year-Over-Year Growth (2021-2022):  52%

Class of 2021

• Number of Territories:  7
• 2022 Average:  712
• Number and Percentage Above Average:  2 (29%)
• Median:  586
• High Territory:  2,104
• Low Territory:  150
• 2021 Average:  435
• Year-Over-Year Growth (2021-2022):  64%

Class of 2022

• Number of Territories:  20
• 2022 Average:  302
• Number and Percentage Above Average:  7 (35%)
• Median:  240
• High Territory:  837
• Low Territory:  57
• 2021 Average:  $ –
• Year-Over-Year Growth (2021-2022):  N/A

• “Customer Performance” is based on the 107 territories open and generating revenue for at least six months in 2022.

• A “customer” is one unique individual.

Part 3 – Revenue Growth by Class

All Pre-2016 Franchise Locations

• 2020-2021:  171%
• 2021-2022:  27%
• 2020-2022:  269%

Class of 2016

• 2020-2021:  175%
• 2021-2022:  51%
• 2020-2022:  315%

Class of 2017

• 2020-2021:  208%
• 2021-2022:  58%
• 2020-2022:  385%

Class of 2018

• 2020-2021:  358%
• 2021-2022:  30%
• 2020-2022:  493%

Class of 2019

• 2020-2021:  227%
• 2021-2022:  73%
• 2020-2022:  467%

Class of 2020

• 2020-2021:  528%
• 2021-2022:  54%
• 2020-2022:  864%

Class of 2021

• 2020-2021:  –
• 2021-2022:  117%
• 2020-2022:  –

Part 4 – January 1, 2022 to December 31, 2022 Income Statement Performance

Average

Gross Revenue:  $508,605 (100%)

Cost of Sales

• Labor:  $171,501 (34%)
• Pool Rental:  $68,962 (14%)
• Equipment/Supplies/Merchandise:  $11,707 (2%)
• Total Cost of Sales:  $252,169 (50%)

Gross Profit:  $256,435 (50%)

Operating Expenses

• Royalty Fee:  $50,860 (10%)
• Marketing Fee:  $10,172 (2%)
• IT:  $5,196 (1%)
• Advertising and Promotion:  $14,793 (3%)
• Office Supplies/Expense:  $5,117 (1%)
• Professional Fees:  $4,571 (1%)
• Merchant and Bank Fees:  $10,948 (2%)
• Training:  $2,296 (0%)
• Travel/Entertainment/Meals:  $6,117 (1%)
• Insurance:  $6,155 (1%)
• Taxes:  $2,870 (1%)
• Other:  $11,694 (2%)

Total Operating Expenses:  $130,790 (26%)

Net Operating Income:  $125,645 (25%)

• The table above is based on the 83 U.S. territories open and generating revenue for at least nine months in 2022, for which income statement information was provided. British Swim School has chosen to use territories that were operating for at least nine months because of the higher-than-usual expenses for the first three months of a territory’s operation.

• There are 21 multi-territory franchisees meeting the operating criteria as defined above whose cost of sales and expense line items are divided proportionally across their respective territories based on the revenue generated in each territory. These 21 multi-territory franchisees did not report financial information for each territory, 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 and retirement expenses), aggregated franchise owner financial expenses (such as interest, amortization, and depreciation), other income, and owner’s compensation.

Part 5 – Additional Performance Metrics

Contracted Pools per Franchise Territory

• For calendar year 2022, franchise business owners contracted with an average of 2.0 pools per territory. The median number of pools contracted was 2.0, with a low of 1 and high of 7.

• For calendar year 2021, franchise business owners contracted with an average of 2.1 pools per territory. 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.

• For calendar year 2020, franchise business owners contracted with an average of 2.5 pools per territory. The median number of pools contracted was 2.0, with a low of 1 and high of 11. Contracted Pool data are based on 236 contracted pools where franchisees provided services for more than 30 days in calendar year 2020, as captured in the British Swim School POS system.

Revenue per Contracted Pool

• 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.

• For calendar year 2020, contracted pools generated an average revenue of $42,999, with a median revenue of $23,191. The low revenue for a contracted pool was $427, while the high revenue for a contracted pool was $407,871.

• 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) ⬇️