Built on Friendship: Childhood Bonds Fuel a 36-unit Portfolio

Name: Katie Lee; Brian and Hope Bayer
Title: Multi-Unit Franchisees
Company: BHB Investment Holdings
No. of units: 36 Goldfish Swim School
Ages: Katie, 49, Brian, 50, and Hope, 48
Family: Katie and her husband, Tommy, have 3 children, Carolina, Joseph, and James. Brian and Hope have 3 children, Kaitlin, Alex, and Elizabeth
Years in franchising: 18
Years in current position: 18

Katie Lee and Brian and Hope Bayers are co-winners of the Single-Brand Leadership MVPs (Most Valuable Performers) for achieving leadership with a single brand.

Lifetime connections and relationships are the foundation of the original and largest franchisee group in the Goldfish Swim School system. Since becoming Goldfish’s first franchisees in 2009, Katie Lee and childhood friends Hope and Brian Bayer have grown their business to 36 schools across nine states with a goal to reach 40 by the end of the year. 

Their story dates to when Katie and Hope were 8 years old and started swimming competitively together. Hope and Brian started dating when they were 15 and later married, and the three have remained best friends since. After leaving her corporate job and returning home to Michigan in 2007, Katie was introduced to Goldfish by its co-founder, Jenny McCuiston, whom she knew as a swimmer from a rival high school while growing up. 

Katie began teaching classes there part-time and was impressed by the number of kids taking swimming lessons. Brian was in the process of leaving his family business at the time, and the three of them discussed the possibility of partnering together on a new Goldfish location. The timing was fortuitous because McCuiston was considering franchising the concept. 

Katie oversees all operations, and Brian serves as CFO and leads growth. Although Hope’s background is in teaching, Katie says her role is constantly evolving and she “does everything and all things.” The three credit their success to understanding their strengths and staying focused on their respective roles, which helped them become co-winners of the Single-Brand Leadership MVP Award. 

After initially expanding into several Midwest states, the group moved into New York and New Jersey (now its largest markets) and recently entered Florida. Managing locations across multiple states and more than 2,000 employees presents challenges, Katie says, but she sets the tone each week with a Monday noon call that brings together about 125 members of the management team and keeps everyone aligned. 

“I never want people to feel like a number,” Katie says. “It first started by not wanting clients to feel like a number and by treating them as individuals. Now, it has evolved to my team. All the people on our team, specifically general managers on up, know who Hope, Brian, and I are. We are intimately involved in the business, and we are not stepping away. I’ve stuck to the Monday call because I want them to see me and know I’m in it with them.” 

As Goldfish Swim School’s largest and longest-tenured franchisees, Katie, Hope, and Brian serve as mentors to other owners in the system. Katie says she is happy to speak with other franchisees seeking advice, but she also relishes the opportunity to learn from them. Franchising is collaborative, and everyone can learn from each other regardless of size or experience. 

“We are changing children’s lives to be safe in and around the water,” she says. “You really can’t beat that in having a job with as many kids as we teach in a given year. Every child deserves the opportunity to learn how to swim. It has also changed the trajectory for my family. The ability to be a working mom and have my kids see what I am doing: what an opportunity of a lifetime.” 

MVP QUESTIONS 

(Answers are from Katie.) 

Why do you think you were recognized with this award? We set the precedent for what franchise owners needed to be in a brand that was changing the face of the industry. We were the first ones to show what it looked like to go all in on Goldfish Swim School before anyone else had proven it at scale. We built the blueprint. 

How have you raised the bar in your own company? As we expanded into different states, we put regional managers in place to manage our operations groups on the ground. That structure has allowed us to maintain our standards and culture across all 36 schools wherever they are located. 

What innovations have you created and used to build your company? We have made a heavy investment in leadership development by constantly pushing our team to grow and evolve. We also use technology as a key tool to manage our business both up close and from a distance. When we opened our first out-of-state school, I needed to see what was happening every day with total sales, performance benchmarks, etc. We built dashboards that consolidate data across all 36 schools. That gives us a low, a high, and a middle, so we can identify where a school is underperforming and course correct fast. Having that many data points is a real competitive advantage. We can see things a three-unit operator simply cannot. 

What core values do you think helped you win this award? Integrity, compassion, and trust most define us as an organization. 

How important is community involvement to you and your company? It is hugely important. We are in these communities, and we want people to feel like part of the family we have created. It is not just about teaching a swimming lesson; it is the whole experience from the moment you walk in the door to the moment you leave. The balloons, the family swim nights, the pizza and cupcakes: We want you to want to come here, and we know you, and you know us. Our staff feels that way too. 

On the charitable side, we partner with the Children’s Center in Detroit. My dad was on their board, so it was a natural connection for me. I have been going there since I was a child myself. Every summer, we bus the camp kids in to swim twice a week for six weeks at two of our schools. The joy on those kids’ faces is something else. Every child deserves the right to learn how to swim, and we are doing everything we can to make that happen. Our staff looks forward to it every single year. 

What leadership qualities are important to you and your team? Being futuristic, being stable, staying focused on the P&L, and being actively involved in the schools. And above all, it is servant leadership. I believe you lead people by being alongside them, not above them. That philosophy runs through everything we do. 

PERSONAL 

First job: I was a lifeguard and swim coach for seven years as a teenager.  

Formative influences/events: I worked with a female VP when I was with IBM. She changed the way I lead. She was a single mom with kids at home. One day, she told us she was taking a leave of absence because her family needed her. As a 25-year-old, I didn’t connect with this idea until I became a mother myself. I now understand exactly why she made this critical decision for her family. That stuck with me deeply. 

My dad was a CFO for a large hospital, and I am absolutely the product of my father. Watching him lead with respect and build real relationships with the people around him is where my relational leadership style comes from. 

Key accomplishments: Taking the leap from corporate America into Goldfish was the first major accomplishment, and then later opening our first school out of state was a massive milestone. 

The accomplishment I am most proud of, though, is the longevity of our team. I have someone approaching 20 years with us who has gone from Goldfish’s first employee to my director of pool operations. That kind of loyalty tells you everything about the culture we have built. 

Biggest current challenge: Acquiring, retaining, and training great people. It is a constant in the operations business, and honestly, I have made peace with it, and it does not rattle me anymore. But I also work hard to reframe it for my team. I tell them not to look at this as a negative but as an opportunity to find amazing people and bring them into what we are building. We have 2,000 people working for us, and I never want anyone to feel like a number.  

Next big goal: To reach 50 units and to figure out how to scale our operations sustainably. That has been our biggest hurdle this past year. We were able to grow, but now we are asking ourselves: How do we do this at scale?  

First turning point in your career: Entering franchising with my best friend and her husband. It was the biggest life change and trajectory shift I have ever made for both my family and me. Leaving the security of corporate America to build something from the ground up with people I trusted completely was everything. It changed what I do every single day. 

Best business decision: Taking the leap into franchising with Brian and Hope. Leaving a stable, well-paying corporate career was a risk, but doing it alongside people I trusted with my life made it the best decision I have ever made professionally. Everything we have built stems from that one choice. 

Hardest lesson learned: Leading at this scale can feel like operating in a silo. In corporate America, if you are a VP, you have a peer VP right next door whom you can bounce things off. In our world, we are paving the road ourselves. The franchise system supports us, but when you operate 36 schools, you are often figuring things out without a true peer to lean on. That is both the challenge and the responsibility of being this size. Every day brings something new, and I have learned to embrace that. 

Work week: Every Monday at noon, I run a leadership call with our entire management team of about 125 people. That is the anchor of my week. I have an office in Northville, Michigan, and I try to be there at least every other week. Beyond that, my travel schedule is built entirely around the needs of our schools and our team. I may be in the office every day one week and traveling out of state the next.  

Exercise/workout: I am a 5:30 a.m. workout person—no exceptions. I genuinely cannot function without it. It is not optional for me. 

Best advice you ever got: My dad told me, “Hire slow, fire faster.” I thought it was pretty blunt at the time, and I remember thinking, Dad, really? But he just said that I would figure it out, and he was right. I live by it now. 

What’s your passion in business? Leading people and working with others. That is my niche. If you looked at my strengths profile, I am a high executor, and I get things done. But my other top strengths are harmony and positivity, and those two things work really well together in operations. I learned that from my dad. I watched him build genuine, mutually respectful relationships with everyone around him. I am wired the same way, and I think it shows in how I lead my team. 

How do you balance life and work? I know when I need a break. I am very conscious of that now. Sometimes, it is as simple as telling myself not to open my laptop on Sunday. I do work a lot, and I will not pretend otherwise. But I also know when my body and my mind need to shut it down and pause. I am a better leader when I give myself that space, and I think everyone is. Whether that means exercise, reading, watching a movie, or going on a real vacation, you have to protect that time.  

Guilty pleasure: Traveling up north with my family to places like Charlevoix and Walloon, Michigan. There is nothing better than getting away with the people I love most. 

Favorite book: Kristin Hannah is one of my all-time favorite authors, and The Nightingale is at the top of my list. I read to escape, not to learn.  

Favorite movie: “The Holiday.” We are a massive Christmas family, and we love everything about the holidays. 

What do most people not know about you? I am terribly claustrophobic. I do not love people knowing that about me.  

Pet peeve: If you say you are going to do something, do it. Simple as that. 

What did you want to be when you grew up? An accountant because that is what my dad was. 

Last vacation: Deer Valley, Utah, with my husband, Hope, Brian, and our kids in March. 

Person you’d most like to have lunch with: Mother Theresa and/or Charlie Kirk. 

MANAGEMENT 

Business philosophy: Be the best you can be while keeping people safe in and around the water. That is our brand promise and our operating philosophy. 

Management method or style: Servant leadership, through and through. I want to be alongside my team, not above them. I travel to our schools specifically to work side by side with my directors so that we are seeing the same things. I run our Monday noon call every single week so that 125 managers hear directly from me. I believe that when people feel seen and valued, and not like a number, they show up differently. That is the culture we have built, and I protect it fiercely. 

Greatest challenge: Acquiring, training, and retaining great employees at scale. It is the nature of the operations business, and it does not go away. But I have reframed it for myself and my team. We are not losing people; we are constantly creating new opportunities to bring in great talent. The goal is to make sure no one ever feels like a number even when you have 2,000 employees across 36 locations. 

How do others describe you? People would probably describe me as firm but kind. 

Have you ever been in a mentor-mentee relationship? What did you learn? Absolutely, and it is the foundation of how I lead today. I had a mentor at IBM who pushed us to level up our communication and treat every person, no matter where they were in the world, with genuine respect. My dad also served as a mentor for me. Watching him lead with integrity and build real relationships taught me more than any business book ever could. Now, I am on the other side of it. I invest heavily in my team because those IBM leaders invested in me. My people may not stay at Goldfish forever, and that is okay, but I want them to walk away with something that changes how they lead for the rest of their lives. 

One thing you’re looking to do better: I am always looking to improve my leadership. 

How you give your team room to innovate and experiment: I give my team tools that help them see the business a little differently, and then I give them the freedom to make the decisions. That combination of visibility and autonomy is what drives real innovation. 

How close are you to operations? Very close. I build my entire travel schedule around where our schools and our team need me most. I work alongside my directors in the field, not just checking in but working with them, so we are looking at the same things through the same lens. That hands-on presence is nonnegotiable for me. 

What are the two most important things you rely on from your franchisor? Data and strategy. 

What you need from vendors: Due to our size and our focus on scaling, I need vendors who can work with large franchisees. I am not buying 100 towels; I am buying 1,000, 2,000, 3,000 towels. Vendors need to be able to accommodate us and support the volume in which we operate. 

Have you changed your marketing strategy in response to the economy? How? Our strategy has been to get back to the basics and deliver a golden experience for the customer so that we can differentiate ourselves. When people are more careful about where they spend their money, the answer is to make sure they never question the value of what we offer. 

How is social media affecting your business? Social media has been a real asset for us because it lets us show people what is happening inside our facilities. A video of a lesson in the water tells a story that a static image never could, and everybody responds to that. 

How are you using technology, like AI, to manage your business? We have been using it quite a bit over the past six months to further enhance and execute our cross-location scalability.  

How do you hire and fire? Hire slow, fire faster. It is the truest thing I know. Take your time finding the right person. And when it is not working, do not drag it out for their sake or yours. 

How do you train and retain? We invest heavily in leadership development at every level. The Monday noon call is a big part of it. Our 125 managers hear directly from me each week. It keeps the culture alive and makes people feel connected to something bigger than their individual school. We also work with a leadership coach, and I push my team to grow constantly. The goal is to make sure people never feel like a number even at our size. When people feel valued and developed, they stay. 

How do you deal with problem employees? We first try to coach up, and then, if necessary, coach out. We use a framework that a leadership coach taught me a long time ago: Does the employee understand the job? Do they have the capacity to do the job? Do they want to do the job? If you cannot answer “yes” to at least two of those three, then you work to figure out whether they are in the wrong seat or simply not a good fit for the company. 

Fastest way into your doghouse: Not being honest. 

BOTTOM LINE 

Annual revenue: $60 million. 

2026 goals: Our goal is to reach 40 units by the end of the year while continuing to build the infrastructure that makes us truly scalable. Everything we are doing right now is designed so that we can add a school, whether it is a new or existing unit, and fold it right into our system seamlessly. 

Growth meter: How do you measure your growth? We measure our growth primarily through revenue growth combined with our ability to continue developing and acquiring franchisees within the Goldfish system and adding them to our portfolio. 

Vision meter: Where do you want to be in five years? 10 years? Our vision is to reach 50 units and to have built an operations model that is truly scalable at that size. Everything we are working on right now is laying the groundwork for that next chapter. 

Do you have brands in different segments? Why/why not? No. And honestly, I cannot imagine it. Goldfish requires us to be incredibly hands-on with our clients, our employees, and our facilities. Adding another brand on top of that would mean running something very differently, and that is not how I operate. I would rather acquire more Goldfish schools and do what I do really well. I love what I do. Let me do more of it. 

How is the economy in your region(s) affecting you, your employees, your customers? The economy is always a topic, but thankfully, we are in a business where every child needs to know how to swim. What we are seeing now is that some clients are not spending as long as they have in the past. They might swim with us for four months, take a break to play soccer, and then return. There are simply more activities competing for families’ time and budgets than there were 10 years ago. 

Are you experiencing economic growth in your market? Yes. We are growing. 

How do changes in the economy affect the way you do business? We know the customer is much more sensitive to where their money is being spent, so we are doubling down on being the best in the business when it comes to quality care and treating every family as an individual. The customer needs to see value, and we show them that through our lessons and by reinvesting in our facilities. We have completed major six-figure renovations across several of our older schools in the past two to three years. 

How do you forecast for your business? Our business is cyclical with busy and slow periods throughout the year. When we are forecasting, the first thing I look at is growth relative to having enough staff. Our controllables are payroll and expenses. During slower times, I need to make sure we are cutting appropriately without diminishing the business. It is very quarterly driven and varies by state. 

What are the best sources for capital expansion? For our earlier growth, a strong relationship with a local bank, Level One, which later became First Merchant, got us off the ground. For the large acquisition, we did something different and worked with MGG Capital, which essentially bought our debt. It is not private equity but rather debt leveraging, and it was the only way to make that deal happen at the scale we needed. They have been wonderful partners. 

Experience with private equity, local banks, national banks, other institutions? Why/why not? We have not gone the private equity route. Our approach has been debt leveraging through MGG Capital for our most recent acquisition and a long-standing local bank relationship that really built the foundation of our growth. Our banker at Level One believed in us so much that he eventually became a Goldfish franchise owner himself. 

What are you doing to take care of your employees? We work hard to make sure no one ever feels like a number. With 2,000 employees across 36 schools, that could easily get lost, but we fight against it every day. We also have a leadership coach who works with our team, and we invest real time and resources into developing people at every level. 

How are you handling rising employee costs (payroll, minimum wage, healthcare, etc.)? On the hourly rate side, we are working to stay ahead of whatever the state or federal government has mandated. It is fascinating to see how many states are still following the federal mandate without a statewide one in place. On the benefits side, we are now at a size where we can put really strong healthcare and 401(k) plans in place, and that is exactly what we are focused on building out. 

What laws and regulations are affecting your business, and how are you dealing with them? There is nothing major beyond the standard health department requirements that come with owning a business in the pool space. That is just part of the territory. 

How do you reward/recognize top-performing employees? Every employee has an anniversary program tied to their tenure of service. The longer they stay, the more the award grows. We also do discretionary bonuses and trips for top performers.  

What kind of exit strategy do you have in place? We do not have one in place at the moment.