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Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of American Poolplayers Association Franchise Costs (2014 FDD)

by Franchise Chatter on October 2, 2014

in Franchise Costs, Recreation Franchise

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American Poolplayers Association Photo by Barbus Photo

Detailed Estimates of American Poolplayers Association Franchise Costs Based on Item 7 (Estimated Initial Investment) of American Poolplayers Association’s 2014 Franchise Disclosure Document

  • The franchise offered is for the operation of an amateur pool league.

1.  Initial Franchise Fee:  Based on Population of Territory; Base Fee of $10,000

  • The estimate shown is for a franchised Territory with a population of 400,000 people or fewer. The initial fee is based on $10,000 plus $500 for every 50,000 people, or portion thereof, over 400,000 in population in the Territory. If the population of the Territory is (a) 500,000 people, the initial fee would be $11,000; (b) 800,000 people, the initial fee would be $14,000.
  • Territories with a population of 300,000 to 800,000 are a typical range of size of Territories granted by the Company.

2.  Equipment/Computer Software and Hardware:  $2,000 to $3,250

  • You are required to use American Poolplayers Association’s confidential and proprietary Software Program in managing the franchise. The Software Program is loaned to you, the cost of which is included in your initial franchise fee.
  • The estimated cost of a computer system meeting the suggested requirements from a typical computer vendor is $1,800 to $2,500.
  • American Poolplayers Association will provide you a local league website and email address to use, currently free of charge.
  • You will need a scanner (legal size scanning bed). You will also need a telephone answering/voice mail system for your landline or cellular phone you use for League operations. A scanner and answering/voice mail system can be purchased for $300 to $600.
  • Furthermore, you will need basic office furnishings, such as a filing cabinet, desk, and desk-chair.
  • Depending on the size and characteristics of your Territory, American Poolplayers Association may, in its judgment, require you to purchase and use a GPS device. Suitable GPS devices cost $150 to $250.

3.  Broadband Internet Access:  $30-$50 monthly

  • You must acquire and maintain Broadband Internet (such as cable, DSL, or other high-speed broadband connection) access.

4.  Training Program Expenses:  $700 to $1,700

  • You must pay a $500 deposit to reserve your Territory and your place at the next available training program. If you fail to attend, without canceling 7 days before the program and rescheduling to the next regularly scheduled program, your deposit is forfeited. If you successfully complete the training program and American Poolplayers Association accepts your application and signs the Franchise Agreement, your $500 deposit is fully applied to the initial franchise fee.
  • You are responsible for all travel, lodging, and meals in attending the training program. The 6-day training program is held in the metropolitan St. Louis, Missouri area, so the closer you are to the site, the lower your travel expenses will be. The cost of travel could range between $300 to $1,200 (or more) round-trip. Lodging (next to the training site) is approximately $48 per night. You should expect meals to average $25 per day. Taxi service between the St. Louis airport and the training site is about $60 (each way).

5.  3 Days Additional Training During First Year:  $450 to $1,350

6.  Real Estate and Improvements:  $0

  • A separate office is not necessary. Most franchisees, at least initially, work out of their homes.

7.  Initial Inventory:  $0

  • Reasonable quantities of promotional materials (posters, brochures, etc.), score sheets, and other forms necessary to get started are supplied to you as part of the initial franchise fee.

8.  Insurance:  $514.90

  • American Poolplayers Association requires that you purchase and maintain, at all times during the franchise, insurance with such minimum standards, coverage, and limits as it requires in the Operations Manual.
  • American Poolplayers Association does not require that you purchase the required insurance from any particular source. It, however, made arrangements with Sihle Insurance Agency to offer insurance to American Poolplayers Association franchisees that meet the company’s coverage requirements. The cost of insurance set forth above is based on the premium currently being charged by Sihle Insurance Agency to each franchisee who is participating in the insurance program.

9.  Additional Funds (3 months):  $3,000

  • You will need additional funds to support ongoing expenses in operating your Franchised League (such as auto expense and telephone service) to the extent these costs are not covered by league revenue.
  • Most American Poolplayers Association franchisees start operations with no salaried employees and work out of their homes to reduce their out-of-pocket expenses and need for working capital. This estimate of additional funds does not include wages or compensation for you or any employee, nor rent or cost of an office.
  • Typically, it takes 45 days to start active league play. Revenue from this franchise depends entirely on developing and growing active league play. Your revenue from league play could continue to be minimal well beyond the 3 month estimated start-up phase.

10.  Total Estimated Initial Investment:  $16,695 to $19,865

  • The estimate shown is for a franchised Territory with a population of 400,000 people (or fewer).
  • American Poolplayers Association has relied on its 30 years of experience in pool league operations to compile these estimates.

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