Aqua-tots Swim School Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,619,820 - $2,939,590
Franchise Fee
$37,500
Total US Locations
132
Business Summary
Aqua-Tots Swim School operates swim instruction schools that offer small group and private swim lessons, as well as pool parties, to the general public. Aqua-Tots Swim School uses its established business models, trademarks, and unique system for operation.
Corporate History
Aqua-Tots Swim School Holding LLC was formed in Arizona in 2007 and began offering franchises in June 2007. The foundation of the Aqua-Tots Swim School business model originated from Aqua-Tots Swim Schools, LLC, which started as an unincorporated business in April 1991. This predecessor entity was later reorganized in 2006 and continues to operate a model location for the franchise offering.
Financial Overview
Investment Range
$1,619,820 - $2,939,590
Franchise Fee (Low)
$37,500
Franchise Fee (High)
$50,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$1,470,000
Equipment Costs (High)
$2,575,000
Working Capital
$77,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Aqua-Tots Swim School Holding LLC appears to be in a strong financial position. The company consistently reports substantial net income and positive cash flow from operating activities, with a healthy working capital of over $2.3 million in 2024. The auditors issued a clean opinion, indicating that the financial statements are presented fairly and there are no "going concern" issues. The auditors did note that Aqua-Tots Swim School Holding LLC holds cash balances exceeding FDIC insurance limits, and also identified instances where bank balances were adjusted after monthly reconciliations, recommending improved internal controls. Despite these minor operational observations, the overall financial health of Aqua-Tots Swim School Holding LLC is robust, showing strong profitability and liquidity.
Financing Details
Aqua-Tots Swim School Holding LLC does not offer any direct or indirect financing options to its franchisees. Franchisees will need to secure their own funding, as Aqua-Tots Swim School Holding LLC also does not guarantee any notes, leases, or other obligations for them.
Performance Metrics
Total US Locations
132
Franchised Units
131
Corporate Units
1
Franchising Since
2007
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Aqua-Tots Swim School Holding LLC has no litigation to report. No administrative, criminal, or civil actions are pending or have been concluded against the franchisor or its management within the disclosure period.
Bankruptcy History
Aqua-Tots Swim School Holding LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
Aqua-Tots Swim School franchisees can renew their license for one additional 10-year term. To do so, they must provide written notice of intent to renew between six and twelve months before the current agreement expires. Franchisees must be in good standing, meaning they have not failed to remedy any specified breaches of the agreement, have not committed two or more material breaches in the prior 24 months that were not remedied, and are current on all payment obligations to Aqua-Tots or its affiliates and trade creditors, landlords, or mortgage holders. They must also pay a $10,000 renewal fee and sign Aqua-Tots' then-current franchise agreement, which may have materially different terms, including potentially higher royalty and advertising fees, and adjusted territory boundaries. Furthermore, Aqua-Tots will inspect the franchisee's location and may require renovations, remodeling, or redecorating to meet current brand standards within six months of notification. A general release in favor of Aqua-Tots and its related parties may also be required.
Training & Support Program
Franchisor Assistance
Aqua-Tots Swim School provides comprehensive assistance to its franchisees. Before opening, Aqua-Tots helps with designating the territory and approving the franchisee's chosen site (which must be at least 7,000 sq ft and not a residential pool). They provide access to their confidential digital operating Manual and offer advice on site selection. If requested, Aqua-Tots can assist with lease or real estate purchases for an administrative fee. They also approve the swim school's design plans and offer guidance on construction or remodeling, including sign specifications and layout. Initial training is provided for up to two individuals at Aqua-Tots University in Mesa, Arizona, consisting of approximately four weeks of classroom and virtual reality training, where participants must achieve a 90% or higher on examinations to become certified operators. Optional on-site assistance can be provided during the first 4-8 weeks of operation for an additional fee. On an ongoing basis, Aqua-Tots researches and provides information on new services and business methods, and offers telephone advisory services. Franchisees receive visits from support staff, with additional on-site consultations incurring a fee. Aqua-Tots includes franchisee information on its website and may implement a centralized purchasing system and negotiate with suppliers, potentially receiving rebates. They hold optional annual conferences (with a fee up to $2,500 per person plus expenses) to discuss industry changes, sales techniques, and operational improvements. Aqua-Tots supplies digital artwork for advertising, and any franchisee-developed advertising requires prior written approval. Additionally, Aqua-Tots may introduce additional marketing programs, charging franchisees at cost for digital platforms like email and social media. Franchisees are required to maintain and upgrade their computer and communication systems.
Initial Training Hours
154
Training Location
Hybrid (Online/Virtual and Mesa, AZ)
Ongoing Support
Aqua-Tots Swim School provides ongoing support to its franchisees through various channels. This includes researching and sharing information about new services and business methods, and offering continuing advisory services by telephone during normal business hours. Aqua-Tots' franchise support staff may conduct visits, though additional on-site consultation or advisory services requested by the franchisee will incur a fee. Franchisees' swim school information is included on the Aqua-Tots website. The franchisor may also establish a centralized purchasing system and negotiate with suppliers, potentially receiving rebates. They hold annual conferences to discuss industry changes, operational techniques, and other business aspects; these are not mandatory, but attending incurs a fee (up to $2,500 per person, plus travel and living expenses). Aqua-Tots supplies digital artwork for advertising and promotional materials, and any franchisee-developed advertising requires prior written approval. Additionally, Aqua-Tots may implement and charge at cost for supplementary marketing programs using digital platforms like email, text, and social media. Franchisees are required to maintain and upgrade their computer and communication systems.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
exclusive
Territory Size Requirements
Aqua-Tots Swim School territories are determined through negotiation, taking into account factors such as population density, median income levels, and future development plans. The specific boundaries, which can be defined by streets, highways, map coordinates, or other criteria, are outlined in each individual Franchise Agreement. For franchisees entering a Multi-Unit Development Agreement, an exclusive "Development Area" is granted, which is a broader geographic region within which a specified number of Aqua-Tots Swim School units must be developed. The FDD clarifies that a "Development Area" is not an interchangeable term with a "Territory"; a "Territory" is the specific area surrounding a franchised unit, and while it may partially overlap with a Development Area or other Territories, these overlaps do not constitute a violation of the agreements.
Staffing Notes
Aqua-Tots Swim School requires the franchisee owner to personally participate in the operation of their Aqua-Tots Swim School for a minimum of six months. Additionally, each Aqua-Tots Swim School must always be under the direct supervision of a certified operator who has successfully completed the initial training course and dedicates their full business time and effort to managing and operating the school. The owner or a designated operator (up to two participants) must become an Aqua-Tots Swim School Certified Operator at Aqua-Tots University (ATU) in Arizona, by passing written and practical examinations with a 90% grade or higher. This certification prepares them to effectively hire, train, and equip swim instructor employees in the Aqua-Tots Swim Schools curriculum. The comprehensive training covers subjects such as front desk operations, aquatic operations, customer service, marketing, business accounting, human resources, and in-water skills education. All designated operators and key personnel are required to execute a Confidentiality and Covenant Not to Compete Agreement.