American Poolplayers Association
The American Poolplayers Association operates amateur pool leagues and offers franchises for pool enthusiasts to run local leagues. Known for fostering community through competitive play, it operates in the recreational sports services industry.
American Poolplayers Association franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of an American Poolplayers Association, Inc. franchise ranges from $22,219.56 to $30,758.56, which includes the initial franchise fee and other startup costs as detailed in the FDD [p.1].
What is the initial franchise fee?
The initial franchise fee is based on a base fee of $10,000 plus an additional $1,000 for every 50,000 people, or portion thereof, in the territory over 400,000. For example, if the population of the Territory is 500,000 people, the initial fee would be $12,000; for 600,000 people, it would be $14,000 [p.26]. This fee is non-refundable unless specific conditions are met [p.97].
What are the ongoing royalty and advertising fees?
Mandatory minimum payments, including both royalty and advertising fund payments, must be made regardless of sales levels [p.4]. For advertising fees, franchisees are generally expected to contribute no more than 5% of their Gross Revenues for any period to an advertising plan, subject to certain conditions outlined in the FDD [p.114].
How long is the initial franchise agreement, and can I renew it?
The initial term of a Conditional Term Franchise Agreement is two years or whatever period is specified in the Addendum [p.95]. You have the opportunity to further renew your franchise upon expiration of your 5-year Successor Term under the terms and conditions of the Successor Agreement, which may differ from this current agreement [p.126].
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but it requires APA's prior written approval [p.126]. Additionally, you must provide APA with a notice of transfer along with details about the agreement with the transferee, and APA will approve the material terms including financing arrangements [p.129(j)]. This isn't specified in the excerpts whether APA's approval can be conditional or if there are any exceptions to this requirement.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the franchise agreement on any grounds available by law, as stated on page [p.283].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.43]. You may face competition from other franchisees, outlets owned by APA, or other channels of distribution controlled by APA. However, APA will not license any other person to operate a pool league business using the APA Marks within your Territory without your consent, except in specific circumstances outlined in the FDD [p.93].
What training and ongoing support does the franchisor provide?
The franchisor provides training in the operation and use of the proprietary Software Program [p.23]. Additionally, telephone support and minor updates are provided as part of the Software Support and Maintenance Fee, which is paid annually except for new franchisees within their first 12 months of operations who receive this support at no additional charge during that period [p.23].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it and if certain conditions are met, such as providing actual records from an existing outlet you are considering buying. However, the franchisor does not make any representations about future financial performance or past performance of company-owned or franchised outlets, nor do they authorize their employees to make such representations. [p.57]
What am I restricted to selling, and where must I buy supplies?
The FDD does not specify exact restrictions on what you can sell. However, it mentions that you may need to purchase certain materials and merchandise from suppliers designated by the franchisor or approved by them [p.48]. This includes items related to the franchise's marks, though you have some flexibility in creating your own materials for use solely with your franchise [p.48].