Detailed Estimates of Pool Scouts Franchise Costs Based on Item 7 (Estimated Initial Investment) of Pool Scouts’ 2019 Franchise Disclosure Document
1. Initial Franchise Fee: $20,000
- The Initial Franchise Fee for a single unit franchise is $20,000 if you sign a Franchise Agreement. If you have signed an Area Development Agreement, the Initial Franchise Fee is $2,500.
- If you qualify to participate in Pool Scouts’ Community Heroes Program, your Initial Franchise Fee may be $19,000 if you sign a Franchise Agreement.
- Pool Scouts participates in IFA’s VetFran program. As part of that program, Pool Scouts provides veterans of the U.S. Armed Forces a $4,000 discount on the Initial Franchise Fee for the first Pool Scouts franchise, but no discount will be given for franchises under an Area Development Agreement.
- Pool Scouts may, in its sole discretion, finance a portion of your Initial Franchise Fee. The annual interest rate is typically 12% but can vary depending on your creditworthiness. Financing must typically be repaid over 1-3 years through monthly payments that would vary depending on the amount financed.
2. Postcard Fees: $16,800 to $21,000
3. Setup Fee: $1,000
4. Mailing List Fee: $300 to $375
- Pool Scouts, its affiliate, Pool Scouts Services, or another affiliate of Pool Scouts are the only approved supplier of the Mailer Program in which you must participate. You must purchase all Mailer Program services from Pool Scouts or its affiliate.
- You must pay the Setup Fee, which is currently $1,000.
- Through the Mailer Program, you are required to send mailers to the Targeted Households located in the Territory for your Franchised Business each year during the Season. The Mailer Program requires 7 mailers be mailed to each Targeted Household over the length of the Mailer Program each year. The length of the Mailer Program is specified in the Operations Manual.
- Currently, the Postcard Fee is $0.40 per mailer. The low end of the estimate for the Postcard Fee is based on 6,000 Targeted Households and the high end is based on 7,500 Targeted Households.
- You must pay the Mailing List Fee, which is currently $0.05 per Targeted Household on the mailing list. The low end of the estimate for the Mailing List Fee is based on 6,000 Targeted Households and the high end is based on 7,500 Targeted Households. The mailing list is purchased on an annual basis by Pool Scouts Services. Specific names and addresses are not shared with franchisees.
5. Search Engine Optimization Fee: $3,600
6. Digital Marketing Fees (first 3 months): $1,500 to $4,500
- Pool Scouts or its affiliate, Pool Scouts Services, or a designated supplier are the only approved suppliers of the required Digital Advertising Program in which you must participate.
- For the first Season that the Franchised Business is open, 100% of the Search Engine Optimization Fees must be paid at the time your website goes live. The payment schedule for the Search Engine Optimization Fee in subsequent years will require you to pay $300 per month, payable in advance 1 month prior to the month of service.
- SEO is a per website requirement. For a multi-Territory franchisee operating from a single website, the Search Engine Optimization Fee will be $3,600 regardless of the number of Territories open. You may only have 1 website.
- In addition to SEO, Pools Scouts also requires you to pay to it, Pool Scouts Services, or its approved suppliers the Digital Marketing Fee (depending on your geographic location, currently, $500 to $1,500 per month, per Territory) for online placement services, such as pay-per-click advertising, social media advertising, remarketing, and various digital advertising services.
7. Real Property Fee: $0 to $4,000
- Pool Scouts encourages you to operate your franchise from your home, if local zoning laws permit. If you think your home is not properly zoned or suitable for franchise operations, you may need to lease or purchase suitable facilities.
- Pool Scouts estimates you would need an office/warehouse of 200 to 1,000 square feet for the Franchised Business. The rent will likely vary from $8 to $12 per square foot depending on the size, condition, and location of the facilities.
- If you purchase property for an office, the costs could be significantly higher. The Real Property figures represent a security deposit and 3 months’ rent of 1,000 square feet at $12 per square foot, for a lease in Virginia Beach, Virginia.
8. Office Furnishings, Signage, and Fixtures: $0 to $1,500
- You may also need to purchase or lease certain office equipment, signage, furniture, and fixtures that Pool Scouts may specify.
9. Tools, Equipment, Products, Uniforms, and Supplies: $5,500 to $6,000
- You will need to purchase certain tools, equipment, products, supplies, and uniforms that Pool Scouts specifies. Pool Scouts’ estimate includes tools and equipment that may be needed to provide minor repair services. Cost will vary from state to state.
10. Vehicle, Shelving, and Decals: $2,500 to $12,500
- The only service vehicle Pool Scouts has approved is a recent model (3 years or less) Ford Transit, as specified in the Operations Manual. You will be required to utilize a vehicle and apply decals Pool Scouts has approved. No vehicle may be used without Pool Scouts’ approval.
- Vehicles must meet Pool Scouts specifications including body style, color, and model years and Pool Scouts estimates that you will need 1 to 2 vehicles. Pool Scouts does not currently sell or lease vehicles; you must purchase or lease an approved vehicle.
- You must maintain an approved vehicle for use in your Franchised Business at all times, however, Pool Scouts has only included a lease estimate for 3 months.
- Pool Scouts’ approved decals and shelving system must also be installed on each vehicle at an estimated cost of $10,000 each.
- Your investment may vary depending upon your decision to lease a new or used vehicle, or to purchase a new vehicle. The low estimate ($2,500) listed above is Pool Scouts’ estimate of leasing a vehicle with all costs bundled into the lease and the high estimate ($12,500) includes the cost of leasing or purchasing a vehicle and purchasing decals and shelving separately. Painting or repairs and interior shelving that may be required for vehicle approval may require additional expense.
11. Initial Training: $1,000 to $3,500
- You will incur expenses associated with Pool Scouts’ initial training program. For this training program, Pool Scouts provides instructors and instructional materials. You must pay for transportation, lodging, food, and wages for you and your employees. The cost will depend on the distance you must travel to the training location, the type of accommodations you choose, and the number of employees being trained.
- The estimate is based on travel to Pool Scouts’ headquarters in Virginia Beach, Virginia for training lasting for 5 to 9 days based on your pool experience and knowledge.
12. Insurances, Office and Marketing Supplies and Forms: $5,000 to $8,000
- Pool Scouts estimates that the range given will be sufficient to cover prepayment of insurances, initial office supplies, certain forms and supplies unique to the Franchised Business for the initial phase of the operation of the Franchised Business.
13. Professional Fees: $0 to $1,000
- You may need to employ an attorney and/or other professionals.
14. Licenses: $500 to $1,000
- You may be required by state and/or local laws and regulations to obtain and maintain a license.
15. Additional Funds for 3 Months: $15,000 to $25,000
- You will need to support ongoing expenses, such as payroll, fuel, supplies, and other operating costs to the extent these costs are not covered by gross revenue of the Franchised Business.
- New businesses often generate negative cash flow. Pool Scouts estimates that the amount stated will be sufficient to cover ongoing expenses for the initial phase of the business which Pool Scouts calculates to be 3 months. This is only an estimate, however, and Pool Scouts cannot assure you that you will not need additional working capital during or after this initial phase.
16. Computer, Internet Devices, Phones, Software Setup: $2,000 to $4,500
- Prior to opening your Franchised Business, you must acquire computer equipment, internet service, telephone equipment, and implement and be trained on software systems and/or services (i.e. service management, accounting, telephone system, credit card processing and any other software necessary to operate the Franchised Business) required by Pool Scouts, at your sole expense.
17. Deposits: $0 to $4,000
- As stated above, Pool Scouts encourages you to operate your Franchised Business from your home. If you elect to lease space for your Franchised Business, you may be required to pay lease and utility deposits for such space.
18. Total Initial Investment (Single Franchise): $72,200 to $121,475
- Cost will vary widely and you should review these figures carefully with a business advisor before making any decision to purchase a franchise.