Hudson Valley Swim Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Food & Beverage
• Initial Investment: $93,745 to $121,995
• Franchise Fee: $59,500
• Royalty: Greater of a minimum royalty or 6% to 8% of gross sales, depending on prior-year gross sales
• Marketing / Ad Fee: 2% brand fund contribution; local advertising requirement also appears to be 2%, though the disclosure includes multiple percentage references
• Key additional recurring fees: $200 monthly technology fee; possible cooperative advertising up to 2% of gross sales; local marketing shortfall payment up to required spend of $3,000 per month per pool
• Number of locations: 6 franchised outlets open at year-end 2024
• Best Fit: Owner-operator or manager-led with active oversight

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The estimated initial investment for a single territory is $93,745 to $121,995, with a midpoint of about $107,870. The initial franchise fee of $59,500 is the largest clearly identified upfront cost and represents a substantial share of the total startup range.

The disclosure also references multi-unit development pricing, with fees of $99,500 for 2 businesses, $134,500 for 3, $164,500 for 4, and $194,500 for 5. That suggests the system contemplates expansion beyond one territory, but the stated startup range is for a single territory.

On a relative basis, this is a low startup-cost franchise by the figures disclosed. That said, lower entry cost does not mean low operating complexity, especially where the business may involve multiple pool relationships, staffing, and ongoing local marketing requirements.

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• Royalty: Greater of the minimum royalty or 6% to 8% of gross sales, based on prior-year gross sales
• Brand fund contribution: 2% of gross sales
• Local advertising requirement: The disclosure indicates a local advertising requirement that appears to be 2%, but it also contains other percentage references; it does not clearly establish a single simple percentage in every context
• Technology fee: $200 per month
• Local marketing shortfall payment: Difference between actual local advertising spend and required spend, stated as $3,000 per month per pool
• Advertising cooperative: Up to 2% of gross sales if established
• Other possible fees: Training fees, conference fee, supplier evaluation fee, customer issue resolution costs, payment service fee up to 4%, late fees, NSF fees, report failure fees, and audit expenses

Overall, the recurring fee load appears modest at the base level, but the structure is not simple. The combination of royalty, brand fund, local advertising obligations, technology fees, and possible cooperative contributions means the effective burden can rise depending on how the business is operated.

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Yes, the FDD includes Item 19 financial performance data. The disclosed figures are based on affiliate-owned businesses for 2022 through 2024, with limited franchised-business inclusion depending on the year. The numbers were prepared from internal accounting records and reports, and the disclosure states they have not been audited.

Reported combined annual gross sales

• 2022: $1,002,564
• 2023: $1,419,457
• 2024: $1,809,395

Average / median / range

Because the disclosure provides three annual combined gross sales figures rather than a broad unit-level distribution summary, the practical summary from the disclosed data is:

• Average of the three reported annual combined gross sales figures: $1,410,472
• Median: $1,419,457
• Range: $1,002,564 to $1,809,395

2024 location-level sales shown in the table

• Newburgh, NY: $815,961
• Middletown, NY: $268,423
• Hopewell Jct, NY: $129,858
• Port Chester, NY: $146,690
• Seminole, FL: $181,498
• Monticello, NY: $115,061
• Danbury, CT: $149,880

For those 2024 location-level figures:

• Average: about $258,196
• Median: $149,880
• Range: $115,061 to $815,961

Expense and profit figures disclosed

The Item 19 table also reports combined operating expenses and combined net profit figures for the affiliate reporting group:

• 2024 combined operating expenses: $901,811

• 2024 combined annual net profit (without royalty/brand fund contribution/technology fee): $907,584

• 2024 combined annual net profit (including royalty): $760,019

• 2024 combined adjusted net profit: $670,081

• 2023 combined operating expenses: $678,450

• 2023 combined annual net profit (without royalty/brand fund contribution/technology fee): $741,007

• 2023 combined annual net profit (including royalty): $640,181

• 2023 combined adjusted net profit: $560,267

• 2022 combined operating expenses: $339,392

• 2022 combined annual net profit (without royalty/brand fund contribution/technology fee): $663,172

• 2022 combined annual net profit (including royalty): $663,172

• 2022 combined adjusted net profit: $554,409

These figures suggest wide variability across locations. In 2024, one location generated more than $815,000 in sales, while several others were near $115,000 to $181,000. That spread matters because a system-level total can mask uneven unit performance.

Just as important, revenue is not profit. Even where the disclosure provides net profit figures, those are combined figures for the reporting group shown in Item 19 and should not be assumed to represent what a new franchisee will earn. The sample is also limited and includes exclusions: for 2024, the disclosure included three franchised businesses and six affiliate-owned businesses that operated for all twelve months, plus one affiliate-owned business opened in March 2024 because expenses could not be segregated, while excluding other franchised businesses that did not meet the stated criteria.

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• Model type: The disclosure suggests a service business rather than a conventional retail storefront, despite the category label provided
• B2C / B2B: The structured data indicates hybrid/B2B signals, but the disclosure does not clearly establish a simple single-channel classification
• Revenue pattern: Appears to include recurring revenue where operations are year-round, with some seasonal variation shown by the summer-only outdoor location
• Operations: Multi-site pool-facility relationships appear central to the model, including gyms, hotels, outdoor facilities, and a community center
• Staffing / management: Requires either direct operation by the franchisee or an approved manager, plus a Responsible Owner
• Equipment / systems: The disclosure indicates meaningful technology use and suggests equipment needs are material

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Advantages

• Startup investment is relatively low at $93,745 to $121,995 for a single territory.
• Item 19 includes actual sales, expense, and net profit figures across multiple years.
• The system had 6 franchised outlets open at the end of 2024, up from 4 at the start of the year.
• The model appears capable of operating across different facility types, including gyms, hotels, outdoor sites, and community centers.

Considerations

• The territory is non-exclusive, which can limit territorial protection.
• Royalty is variable and tied to prior-year gross sales, with a stated range of 6% to 8% plus a minimum royalty structure.
• Local advertising obligations appear meaningful, including a stated $3,000 per month per pool shortfall mechanism.
• Reported sales vary substantially by location, which points to execution and site variability.
• The business appears to require active management rather than passive ownership.

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This franchise may fit an owner-operator or a franchisee who plans to install an approved manager and remain actively involved in oversight. It may also fit someone comfortable managing multiple facility relationships and local marketing obligations.

It likely does not fit a passive investor looking for a simple absentee model. It may also be less suitable for someone who wants exclusive territory protection or a straightforward single-site retail format.

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• The franchisor may terminate without cause, which creates contractual risk beyond ordinary default-based termination.
• Disputes must be mediated, arbitrated, and if applicable litigated in the principal city closest to Hopewell Junction, New York, subject to applicable state law.
• The franchise term is 10 years, so the decision involves a long contractual commitment.
• Some recurring obligations can be triggered by noncompliance, including report fees, audit expenses, unauthorized advertising fees, and customer issue resolution costs.
• The disclosure notes that one 2024 franchised business was excluded due to a four-month suppression of operations tied to owner hardship and lack of oversight, which underscores the importance of consistent management.

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Hudson Valley Swim presents a tradeoff between relatively low initial capital requirements and a business model that appears hands-on, multi-site, and operationally demanding. The disclosed revenue and expense history provides useful context, but results vary widely by location, and the non-exclusive territory and layered fee structure add constraints that a buyer would need to evaluate carefully.

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