Franchise Evaluator™: British Swim School

What population does the brand serve? Is the market broad, niche, or somewhere in-between?

Even during economic downturns, parents are willing to spend significantly on their children’s recreational activities, including swimming, gymnastics, dancing, recreational sports and more. According to Future Market Insights, the kids recreational services market size is worth $1.47 billion and is projected to reach $10.62 billion by 2032, at a CAGR of 53.4%.

We categorize the market size as a large market.

Is the overall industry growing, that is creating new customers who have never used these services before, or mature where most population segments are already using these types of products and services?

Swim instruction provides an essential life skill to combat drowning. Formal swim instruction has been shown to reduce drowning risk by 88%. However, the experience of learning to swim can be negatively impacted by cold pools, too many kids in a class, untrained or little-trained staff, and outdated teaching methods. British Swim School is looking to offer parents something different. The demand for other alternatives in the early child development industry, including fitness, exercise, sports, and safety training for children of all ages, continues to grow, and well-trained, organized, and trusted providers will benefit from the increase in demand.

We categorize the Industry Trend as a high growth trend.

What drives the purchase of the product or service? Is it a “need-to-buy” or a “want-to-buy”? How are customers drawn to your business?

Swimming lessons are at the heart of the business. British Swim School offers a variety of programs for children under three (tadpole, swimboree, and seahorse), children over three (starfish, minnow, and turtle 1), and stroke development (turtle 2 and shark 1 and 2) as well as programs for teens and adults. The lesson-based model provides predictable revenue and is sticky due to the recurring nature of lessons and development tiers, which technology cannot replace. Swim lessons, by nature, have to be done in person, over multiple sessions, and on a regular schedule.

We categorize the product and service drivers as high drivers.

Are competitors a major factor in operating your business? If so, is competition sparse or saturated? Will it matter to your business?

Even during economic downturns, parents continue to invest in their child’s safety and education. British Swim School is a unique, home-based, rapid, time-to-open concept that entrepreneurs can feel good about running. Competition in the market may come from franchised concepts, like Goldfish Swim School, adding swimming lessons as a service line, or from independent providers at facilities like the YMCA.

We categorize the competitive climate as mid-high competitive pressure.

Are the business’s products or services regulated, or do they require licensing? Will you or your employees require special licensing? If so, is the regulatory climate strict or lax? Will this affect recruiting employees?

Franchise owners must adhere to all state and local regulations regarding the required safety equipment, pool rules, and safety signs related to swimming pools. Check with your local municipalities on any requirements.

We categorize the regulatory climate as high regulation.

How experienced is the franchisor at being a franchisor?

British Swim School has more than 40 years of business experience and has established itself as the leader in learn-to-swim programs for students of all ages and abilities. The brand has the backing of multi-brand franchising company Buzz Franchise Brands, positioning itself as a leading opportunity for candidates seeking a low-cost, asset-light home-based business. Consistent ranking in Entrepreneur’s Franchise 500 list in 2023, it has also been ranked among the Fastest Growing Franchises & Top 100 Franchises Under $100k, and it was ranked #737 on the Inc. 5000 list in 2022.

We categorize the Franchising Experience as Extensive.

What is the tenure, background, and commitment of the franchise’s leadership?

The president of British Swim School is Ashley Gundlach, a passionate entrepreneur who originally joined the brand as Director of Marketing in 2019. To help the brand grow, British Swim School has an impressive franchise development team that includes Dave Warn, Austin James, Kris Nilsson, Rita Iglesias, and Jackie Lanzalone. The team at Buzz Franchise Brands consists of experienced franchise executives, including CEO Kevin Wilson, COO and President Brian Garrison, CMO Angela Paules, and CFO Michael Hull, who all have years of successful franchising experience with multiple brands.

We categorize the Franchising Leaders as Highly Experienced.

How often and how well does the franchisor engage franchisees? What assistance is provided in starting and operating your business.

British Swim School’s training program covers all essential aspects of running a swim school, including business management, instructional techniques, and more. Franchisees receive one-on-one business coaching to achieve their goals from experienced professionals who understand the challenges of running a swim school franchise. Additionally, franchise owners gain access to a dedicated in-house marketing team that specializes in graphic design, digital marketing, social media, direct mail, public relations, and local marketing. British Swim School’s annual conference presents an opportunity to engage with other franchise owners, attend informative workshops, and take part in training sessions.

We categorize the Franchisee Engagement as Highly Engaged.

In what kind of financial shape is the franchisor?

According to British Swim School’s 2023 FDD item 19, franchise owners averaged a gross revenue of $509,000, with a gross profit of $256,000, a net operating income of $125,000, and a net margin of 25%. The brand’s highest earning location grossed $2.9 million, with a gross profit of $1.3 million, net operating income of $589,000, and net margin of 20%. In-demand services that can’t be outsourced or replaced by technology, low overhead, and a best-in-class training methodology are the foundation of a successful franchise. *Item 19 2023 BSS FDD. Always consult your financial and legal counsel before making any investment decisions. The information presented here does not constitute endorsement or validation for information purposes only.

We categorize the Financial Health as Sound.