From the filings

HQ-led decisions

Water Babies

Youth services

Software purchasing at Water Babies is controlled at the headquarters level, led by CEO Howard Harrison and COO Mike Lonergan. The franchise mandates a specific tech stack including Ada and QuickBooks Online, leaving little room for unit-level discretion. With only 2 company-owned units in the US, the addressable market is extremely small, making this a highly targeted, account-based opportunity.

For software vendors selling into US franchise brands.

Live signals

Total units
2
0 franchised
Unit growth YoY
—
vs prior filing
AUV
—
Item 19, 2025
Royalty
10%
of gross sales
Ad fund
2%
national + local
Initial fee
$55K
per unit
Investment range
$108K–$153K
all-in, Item 7
Procurement
Approved supplier
from the filing
Item 19
Claims
from the filing

Ongoing fee load

What the operator pays every month

The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.

12%of gross sales (FY2025)

Ongoing fees: 12% of gross sales (FY2025)Royalty 10%, Ad fund 2%. Total 12% of gross sales. Drawn against a 15% reference scale.

15% reference

Royalty 10%Ad fund 2%

Mandated & recommended tech

The systems vendors compete with

2 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.

FacebookMeta
Mandatory
MarketingItem 11

approved. We, our affiliate, or our designated supplier will provide digital advertising services which includes search engine optimization services and management, pay-per-click, Facebook advertising

QuickBooks OnlineIntuit
Mandatory
AccountingItem 11

ment as we may specify in the Operations Manual to operate the Water Babies Business Model. We currently require you to obtain a Windows OS or Mac OS X compatible computer system, QuickBooks Online ac

Apple PayApple
PaymentsItem 6

termine (for example, Credit Card, ACH, Debit Card). The term “Payment Systems” includes, among other things, companies that provide services for electronic payments (for example, Apple Pay and Google

Google PayGoogle
PaymentsItem 7

xample, credit card, ACH, debit card). The term “Payment Systems” includes, among other things, companies that provide services for electronic payments (for example, Apple Pay and Google Wallet). The

InstagramMeta
MarketingItem 11

tion of any web page(s). You may not establish or maintain a separate website, register or use any domain name/URL address, or use any other social media outlet, such as Facebook, Instagram, X (former

TwitterX
MarketingItem 11

. You may not establish or maintain a separate website, register or use any domain name/URL address, or use any other social media outlet, such as Facebook, Instagram, X (formerly Twitter) or any othe

Franchisor behaviours

What the franchisor requires

23 requirements the franchisor states in this filing, each in its own words; 5 explicit no's; 6 questions the text does not settle, which is not a no.

Accounting

Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?

Yes

Item 11

We currently require you to obtain a Windows OS or Mac OS X compatible computer system, QuickBooks Online accounting system, broadband internet access, VoIP telephone, and a multi-function printer capable of scanning and printing, meeting the functionality necessary to operate software for your Water Babies Business.

Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?

Yes

Item 11

We currently have/reserve the right to have independent, unlimited access to all information and data relating to your business generated by your use of Ada and any other software provided.

Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?

Yes

Franchise agreement

Franchisee shall also submit to Franchisor current financial statements and other reports as Franchisor may reasonably request to evaluate or compile research and performance data on any operational aspect of the Water Babies Business.

How the franchisor buys

Does the franchisor reserve the right to change designated suppliers or systems at any time?

Yes

Item 6

We reserve the right to modify, replace, or update the designated systems and related requirements at any time in our sole discretion.

How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?

0

Item 8

During 2024, neither we or our affiliates derived any revenue based on the required purchases or leases by our franchisees operating in the United States.

Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?

Yes

Franchise agreement

Franchisee acknowledges and agrees that Franchisor may receive from designated or approved suppliers of Franchisee’s Products, services, equipment, tools, inventory, supplies and hardware and software, periodic volume rebates or other revenue or consideration as a result of Franchisee’s purchases.

Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?

8

Item 8

will be approximately 20% to 45% of your total cost to establish a Water Babies Business and 8% to 30% of your total cost of operating a Water Babies Business

Does the franchisor charge a fee to evaluate a proposed supplier?

Yes

Franchise agreement

Franchisor reserves the right to require that Franchisee pay or reimburse Franchisor for the reasonable cost of investigation in determining whether such products, services, materials, forms, items or supplies satisfy Franchisor’s specifications.

Can a franchisee propose a new supplier for the franchisor's approval?

Yes

Franchise agreement

Franchisee may request that Franchisor approve or designate a new supplier by following the procedures, and paying all required fees and expenses for approval, as set forth in the Operations Manual and modified periodically by Franchisor in Franchisor’s discretion.

Communications

Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?

Yes

Franchise agreement

Franchisee hereby acknowledges that all telephone numbers, facsimile numbers and Internet addresses used in the operation of the Water Babies Business constitute assets of Franchisor, and upon termination or expiration of this Agreement, Franchisee shall take such action within five days to cancel or assign to…

Franchise management

Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?

Yes

Franchise agreement

Franchisor or Franchisor’s authorized agent shall have the right to request, receive, inspect and audit any of the records referred to above wherever they may be located.

Can the franchisor change the operations manual and brand standards unilaterally?

Yes

Franchise agreement

Franchisee acknowledges that Franchisor may modify its standards and specifications and operating and marketing techniques set forth in the Operations Manual unilaterally under any conditions and to the extent in which Franchisor, in its sole discretion, deems necessary to protect, promote, or improve the Marks, and…

Must the franchisor approve the franchisee's site or location before opening?

Yes

Franchise agreement

The Approved Pool(s) are subject to Franchisor’s written authorization, which may be granted or denied in Franchisor’s sole discretion.

Marketing

Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?

Yes

Item 11

You may not establish or maintain a separate website, register or use any domain name/URL address, or use any other social media outlet, such as Facebook, Instagram, X (formerly Twitter) or any other outlet, for or in connection with the Franchised Business without our prior written approval (which we shall not be…

Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?

Yes

Franchise agreement

The Franchisee must spend a minimum of $25,200 on local marketing within the Territory (“Local Marketing Spend”) during each calendar year.

Operations

Must the franchisee buy products from a designated distributor?

Yes

Franchise agreement

Franchisee must purchase all Products, services, equipment, tools, inventory, supplies and hardware and software from Franchisor's designated or approved suppliers, manufacturers and distributors.

Must equipment be purchased from designated or approved suppliers?

Yes

Franchise agreement

Franchisee must purchase all Products, services, equipment, tools, inventory, supplies and hardware and software from Franchisor's designated or approved suppliers, manufacturers and distributors.

Payments

Must the franchisee participate in a gift card program?

Yes

Franchise agreement

Franchisee shall, at Franchisor’s request, accept debit cards, credit cards, stored value gift cards, or other non-cash systems specified by Franchisor to enable customers to purchase the Products and Services offered by the Water Babies Business.

People

Must employees wear uniforms specified by the franchisor?

Yes

Item 6

Each teacher /administrator must have a uniform and branded teacher kit.

Point of sale

Does the franchisor have independent access to the data in the franchisee's POS or computer system?

Yes

Item 11

We currently have/reserve the right to have independent, unlimited access to all information and data relating to your business generated by your use of Ada and any other software provided.

Sales and CRM

Must the franchisee use a CRM system designated or approved by the franchisor?

Yes

Franchise agreement

Franchisee shall utilize Franchisor’s required software, proprietary database management and intranet system, when available, as the exclusive means for tracking and maintaining customer, vendor, and related information, and for such other uses as prescribed by Franchisor periodically in the Operations Manual, in…

Training

Can the franchisor charge the franchisee for additional, refresher or remedial training?

Yes

Franchise agreement

Franchisor reserves the right to designate the computer training school which Franchisee must attend.

Is attendance at an annual convention or conference mandatory for the franchisee?

Yes

Franchise agreement

Franchisee or its Aquatics Director must attend mandatory annual conferences at such locations as Franchisor may reasonably designate, and Franchisee will pay all salary and other expenses of each person attending, including any conference fees, travel expenses, meals, living expenses and personal expenses.

The filing answers no to 5 questions
  • Is the franchisor or an affiliate itself a supplier of required products, services or systems?Item 8
  • Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Franchise agreement
  • Is a minimum grand opening advertising spend required?Item 6
  • Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
  • Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?Item 6

The vendor opportunity at Water Babies

Water Babies presents a micro-opportunity for software vendors. The US system consists of just 2 total units, both company-owned. The number of franchised units is not disclosed in the most recent FDD. With an HQ in North Carolina and a royalty rate of 10.0%, the system is tightly controlled from the top. Average unit volume (AUV) is not disclosed. For a vendor, this is not a volume play; it is a single-account sale to a parent company, Water Babies US TopCo LLC.

Who controls software purchasing

The buying center sits entirely at headquarters. The FDD lists Howard Harrison as CEO, Pete Grimes as CFO, Carl Higgins as Vice President of North America, Mike Lonergan as COO, and Natasha Khojasteh as Vice President of Brand Marketing. For a software pitch, the most likely entry points are COO Mike Lonergan for operational tools and CEO Howard Harrison for strategic platforms. There are no franchisee operators mapped in our corpus, meaning no multi-unit owner influence exists to leverage.

Mandated and current tech stack

Water Babies mandates a specific, narrow tech stack. The 2025 FDD Item 11 requires franchisees to use Ada, a teacher app, QuickBooks Online by Intuit Inc., and a proprietary Water Babies operating system. This is a fully closed environment. Any vendor selling adjacent software—such as scheduling, CRM, or HR tools—must displace or integrate with these mandated systems. The presence of QuickBooks Online signals a lean financial stack with no enterprise ERP.

Procurement, renewals, and timing

The procurement model is not explicitly described in the available FDD extract. There is no Item 8 procurement signal and no Item 17 renewal signal. This lack of transparency means contract windows are unknown. Vendors should assume an HQ-driven, designated-supplier model given the mandated tech stack. The best approach is a direct executive engagement strategy, as there are no franchisee committees or operator groups to influence.

How to read the Water Babies FDD

The 2025 FDD is the definitive source for understanding Water Babies' operational mandates. It confirms the 2-unit footprint, the 10.0% royalty, and the exact systems franchisees must use. For software vendors, Item 11 is the critical section, listing Ada, the teacher app, QuickBooks Online, and the operating system. The FDD also names the full executive team, giving you a clear org chart for outreach. Review the embedded document below to verify all claims before building your pitch. For a ranked target list of franchise systems that match your software, FranCloud can help.

Questions vendors ask

Water Babies, answered from the filing

The buying center includes CEO Howard Harrison and COO Mike Lonergan. As a small, HQ-controlled system, decisions likely require executive approval. The Vice President of North America, Carl Higgins, may also influence operational tools.
The 2025 FDD mandates Ada, a teacher app, QuickBooks Online by Intuit Inc., and a proprietary Water Babies operating system. No traditional POS is specified, reflecting its youth-services model.
There are 2 total units, both company-owned. The number of franchised units is not disclosed in the most recent FDD. This is a very small US footprint.
The procurement model is not detailed in the available FDD extract. Given the mandated tech stack, it operates as a closed, HQ-controlled environment where vendors must sell to the corporate entity.
Contract renewal windows are not disclosed in the most recent FDD. With no initial term length or Item 17 renewal data available, timing is opaque. Monitoring executive changes may provide the best signal.
The FDD is filed with state franchise regulators. You can review the embedded PDF viewer below for the full 2025 disclosure. It contains all mandated supplier and operational details.
Source

Read the filing itself

Every number on this page traces back to this document. Read it in full, page by page. Buy the original PDF to download, search, and annotate it.

Water Babies2025 FDDView only

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FDD alert

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The brands you can actually sell into, from the filings.

Operator footprint

No franchisee network yet. Water Babies’s latest FDD reports no franchised locations.

Ownership

The portfolio behind Water Babies

unknown of water babies group.

Related Youth services brands

Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.