Premier Pool Service
Premier Pool Service offers pool cleaning, maintenance, repair services, and related products, using proprietary systems and marks. Known for reliable pool care solutions, it operates in the swimming pool service industry.
Premier Pool Service franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Premier Pool Service franchise or a Pinnacle Pool Service franchise ranges between $43,150 and $118,250. This includes a payment of $25,000 to $60,000 that must be paid to the franchisor or affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee is $25,000 for the first two units (6,000 estimated swimming pools). Each additional unit is priced as follows: $10,000 per unit for units 3 through 5, $7,500 per unit for units 6 through 10, and $5,000 per unit for each unit beyond 10. The maximum initial franchise fee in any state is $60,000 [p.18]. This fee is non-refundable once the Franchise Agreement is executed [p.88].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5.45% of Gross Revenues [p.88], while the marketing fee is an additional 1% of Gross Revenues, which can be increased up to 4% with prior notice [p.89].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not mention the length of the initial franchise agreement or the renewal process beyond stating that the franchisor may refuse to renew without fairly compensating the franchisee under certain conditions [p.6].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your franchise, but it requires approval from the franchisor for good cause [p.114]. The franchisor has the right to refuse such transfers except for valid reasons [p.6]. Additionally, if a transfer is approved, the new owner will be required to assume all obligations under the franchise agreement [p.98].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.61]. Additionally, the franchisor can terminate the agreement if there is good cause, such as the franchisee's failure to comply with lawful provisions of the franchise agreement and subsequent non-cure within a reasonable period [p.6].
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisor requires maintaining sufficient working capital, specifically ensuring that total current assets are greater than total current liabilities, or an amount determined by the franchisor. There is no specific minimum net worth requirement mentioned for qualification, but the franchisor's financial condition and ability to provide services and support are considered [p.5]. For unaudited financial statements showing a net worth below $100,000, the franchisor may require escrow of initial investment funds until obligations are fulfilled at the franchisee's request [p.7].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.33]. You may face competition from other franchisees, outlets owned by the company, or competitive brands controlled by them. However, your territory will be allocated based on estimated swimming pool numbers in a specified geographic area [p.33], though this number is not precise and you have the option to decline the franchise if you disagree with it.
What training and ongoing support does the franchisor provide?
The franchisor provides both live and online initial training programs for franchisees, their owners, and managers [p.84, p.87]. This includes an initial training program that must be completed to the franchisor's satisfaction before operations begin [p.25, p.84-85]. Ongoing support involves requiring attendance at additional mandatory training programs as designated by the franchisor, though not more than 4 days per year [p.84]. The franchisor may also provide training at their discretion and will cover the costs of initial training for managers but expects franchisees to cover travel, transportation, meals, and lodging expenses for other trainees [p.84, p.25].
How many franchised outlets are there, and how many have closed or been terminated?
There are currently 4 franchised outlets operating under the 'Pinnacle Pool Service ®' mark, with the remaining ones using the 'Premier Pool Service ®' mark. According to [p.5], during the last three years, more than 38% of franchised outlets were terminated, indicating a high turnover rate and potentially making this a riskier investment compared to systems with lower turnover rates.
Does the franchisor share any financial performance or earnings information?
The franchisor does not provide any financial performance or earnings projections [p.45, p.143]. However, if you are purchasing an existing outlet, they may provide actual records of that specific location's performance [p.47].
What am I restricted to selling, and where must I buy supplies?
You are required to offer and sell only the items and services approved by the franchisor, unless prior written consent is obtained. You must use only items and supplies that conform to the franchisor's mandatory System Standards. Regarding sourcing, you may have to purchase or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.4, p.41].