Risk Score
Pending analysis
Investment Range
$24,250 - $1,487,700
Franchise Fee
$16,250
Total US Locations
120
Business Summary
SafeSplash Swim School operates businesses offering "learn to swim" programs for children and adults, birthday parties, summer camps, and other swimming-related activities. They also sell related products. SafeSplash Swim School franchises are offered in four formats: Dedicated Location, Hosted Locations, Conversion Dedicated Locations, and Conversion Hosted Locations. Franchisees can also opt for a SwimLabs Technology Package to offer advanced swimming skill instruction.
Corporate History
SafeSplash Brands, LLC, doing business as Streamline Brands, was incorporated in Colorado on January 4, 2014. While SafeSplash Brands, LLC itself has not operated swim schools, its affiliate, SafeSplash Swim School Parker, LLC, has done so since 2006. SafeSplash Brands, LLC began offering franchises for SafeSplash Businesses in the United States in August 2014. In November 2015, SafeSplash Brands, LLC acquired the Swimtastic franchise system and later, in February 2017, acquired the SwimLabs franchise system. SafeSplash Brands, LLC is an indirect, wholly-owned subsidiary of Youth Enrichment Brands, LLC (YEB).
Financial Overview
Investment Range
$24,250 - $1,487,700
Franchise Fee (Low)
$16,250
Franchise Fee (High)
$55,000
Royalty %
6%
Marketing %
2%
Equipment Costs (High)
$160,000
Working Capital
$82,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD includes a risk factor in its Special Risks to Consider About This Franchise section, stating that the franchisor's financial condition, as reflected in its financial statements (see Item 21), calls into question the franchisor's financial ability to provide services and support. However, the audited financial statements for SafeSplash Brands, LLC d/b/a Streamline Brands for the fiscal years ended December 31, 2024, and 2023, include an unqualified opinion from the independent auditor, indicating that the financial statements present fairly, in all material respects, the company's financial position and results of operations. The statements show positive net income for both 2024 and 2023. As of December 31, 2024, the company had $1,188,993 in cash and total current assets of $4,099,617, with current liabilities of $671,924. This indicates sufficient current assets to cover current liabilities. However, the company has guaranteed long-term debt of an upstream affiliate, YEB Intermediate Holdings, LLC, which totaled approximately $273,000,000 as of December 31, 2024. In the event of a default by the affiliate, SafeSplash Brands, LLC could be obligated to repay this debt, and its assets and franchise license agreements are pledged as collateral.
Financing Details
SafeSplash Swim School does not offer any direct or indirect financing to its franchisees. Additionally, SafeSplash Swim School does not guarantee any franchisee's note, lease, or obligation.
Performance Metrics
Total US Locations
120
Franchised Units
90
Corporate Units
29
Avg Square Footage
4,500
Franchising Since
2014
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
SafeSplash Swim School has disclosed four litigation cases. One case, Milly Ali v. LA Fitness, LLC, was filed in October 2024 in New York Supreme Court, involving a sexual assault at a Hosted Location. SafeSplash Swim School filed a counterclaim against its franchisee to enforce an indemnification provision in the franchise agreement. This case is currently pending. Three other cases involve previous affiliates. The People of the State of California v. Arby's Restaurant Group, Inc. and The People of the State of California v. Dunkin' Brands, Inc. were both filed in March 2019 and involved allegations related to "no-poaching" provisions in franchise agreements. Both cases were settled, with the affiliates agreeing to remove the disputed provisions and not enforce them. New York v. Dunkin' Brands, Inc. was filed in September 2019, alleging the affiliate failed to adequately notify customers and investigate security breaches. This case was resolved in 2020 with a consent agreement requiring a payment of $650,000 and maintenance of a security program. SafeSplash Swim School notes these affiliate actions do not allege any unlawful conduct by SafeSplash Brands, LLC itself.
Bankruptcy History
SafeSplash Swim School has no bankruptcy information to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, SafeSplash Swim School franchisees must provide written notice of intent to renew between six and nine months before the initial term expires. They must have substantially and timely complied with all provisions of their agreement and any other agreements with the franchisor or its affiliates, and owe no outstanding money. Franchisees must not have received two or more breach notices in the 24 months prior to renewal, even if those breaches were remedied. They are required to sign the franchisor's then-current franchise agreement, which may have different terms and conditions (including fees and contributions), and pay a successor franchise fee equal to 10% of the then-current initial franchise fee for a new non-conversion Dedicated or Hosted Location. Additionally, franchisees must sign a general release of claims against the franchisor and its affiliates, refurbish or renovate their facility to meet current image standards, and provide proof of current licenses, insurance, and permits.
Training & Support Program
Franchisor Assistance
SafeSplash Swim School provides a range of assistance to its franchisees. Before opening, the franchisor helps with site selection and furnishes specifications for all required goods and services. They offer an initial training program, known as The Academy, conducted in the Denver, Colorado metropolitan area, which covers the System, swim training techniques, operations, marketing, and customer relations. The franchisor may also provide up to three days of on-site support during the initial opening. On an ongoing basis, SafeSplash Swim School grants access to its School Operating and Management Software for registration, customer service, and payment processing, along with technical support. For franchisees who opt into the Enhanced Services Model, the franchisor provides call center services, billing services, and productivity software. A representative is available for telephone support during business hours to discuss operational issues. The franchisor holds periodic and mandatory annual meetings and conferences for ongoing training, sales techniques, and operational updates. Franchisees also receive access to online training, system updates, and guidance on pricing strategies. SafeSplash Swim School manages a Strategic Marketing and Promotions Fund and makes advertising materials available to franchisees. They may also establish and manage local advertising cooperatives.
Initial Training Hours
80
Training Location
Remote and / or at a facility near Parker, Colorado.
Ongoing Support
After opening, SafeSplash Swim School provides ongoing support including access to online training, mandatory annual recertification programs (The Academy Recertification Training Program), and periodic meetings, seminars, and conferences to discuss sales techniques, new product developments, bookkeeping, training, accounting, inventory control, safety, maintenance, performance standards, and advertising programs. Franchisees also receive updates on mandatory and recommended specifications, standards, and procedures for business operations and instructional curriculum. A representative is reasonably available by telephone during normal business hours for operational issues. For franchisees participating in the Enhanced Services Model, SafeSplash Swim School offers call center services, billing services, and access to school operating, management, and productivity software.
Franchise Requirements
Ideal Candidate Profile
SafeSplash Swim School is seeking franchisees who are willing to diligently develop the franchise and use their best efforts to market and promote the services and products. If the franchisee is an entity, they must nominate a Designated Business Manager with required experience who will have direct responsibility for all operations and own at least 10% of the entity. Both the franchisee and the Designated Business Manager must successfully complete the mandatory initial training program and ongoing mandatory trainings. Franchisees and their owners are required to comply with Anti-Terrorism Laws and represent that they have not been accused or convicted of crimes against children or physical violence. They are also expected to have sufficient financial ability to commence, open, and operate the business.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
SafeSplash Swim School defines its Authorized Territory for a Dedicated Location as approximately a five-mile radius from the site of the business. For a Hosted Location, the Authorized Territory is approximately a 2.5-mile radius from the site of the business. These radii are determined based on the demographics and physical geography of the area, using the latest statistics from the franchisor's designated third-party mapping service. For development agreements, the Development Area is defined by boundaries like city, county, or state limits, or other reasonable boundaries, based on the number of businesses committed and the demographics of the area, including population density and average income.