Franchising Since: 1982
Headquarters: Lake Saint Louis, Missouri
Estimated Number of Units: 340
Franchise Description: American Poolplayers Association, Inc. is the franchisor. The franchisor offers a franchise to operate a pool league business within an assigned geographic territory under its system. The franchise may be granted to an individual (a sole proprietor), a partnership of more than one individual franchisees, including married couples, or a business entity (either a corporation or limited liability company) established by one or more individual franchisees.
Training Overview: Training for new League Operators is in six parts: (1) Discovery Day and Pre-Training; (2) the APA Academy; (3) Training Seminar I, a comprehensive training program over six days at the franchisor’s headquarters facility that franchisees must successfully complete prior to opening their pool league business; (4) Field Training, in-market training where the franchisor’s representative will work with franchisees in developing their marketing strategy, making sales presentations, and effectively organizing their office; (5) mandatory Webinar Series, which is a series of webinars on league-specific topics; and (6) Training Seminar II, follow-up training held at the franchisor’s headquarters facility approximately six months after the franchisee began league operations. Occasionally, league operators choose, or are required, to have employees attend all, or a portion of, the training program.
Territory Granted: Franchisees will be assigned a specific territory, which they and the franchisor believe they will be capable of servicing. The boundaries of the territory may be county lines, or other types of boundaries, including constructed improvements like public roads. The territory will have a population of at least 25,000, though the population will likely be much higher. The franchisor will not license any other person to operate a pool league using its trademarks with the territory (with certain exceptions). However, the franchisor has the authority to promote amateur pool playing, and solicit members for its association of pool players, throughout the nation including in the territory.
Obligations and Restrictions: If franchisees are an individual, they must be the manager of their franchised league, responsible for the day-to-day activities of the franchised league. If franchisees and their spouse own the franchised league, one or both spouses must be designated as the manager(s). If franchisees are a partnership, one general partner must be designated as the manager. If franchisees are a corporation or limited liability company, the majority owner must be designated the manager, unless the ownership is divided so that no one owns more than 50% of the stock or interest, in which case one of the two largest owners must be designated as the manager. The manager must personally manage the franchised business and assure compliance with the Franchise Agreement and the franchisor’s standards. The manager must permanently reside in the territory at all times or within a territory assigned under another Franchise Agreement between the franchisee and APA. League play must be conducted under the franchisor’s system. Franchisees may not own, operate or manage a bar, pool room, or other host location within the territory without the franchisor’s prior written approval.
Term of Agreement and Renewal: The length of the initial franchise term is a two-year conditional term. The franchise extends for an additional five-year regular term only if franchisees meet certain requirements during the conditional term. In addition to the extension noted, 10-year renewals are granted if franchisees meet certain requirements.
Financial Assistance: The franchisor does not generally offer financing, at this time, nor does it guarantee any notes, leases, or obligations.
Investment Tables:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee (based on population of territory) | $10,000 | $12,000 |
| Equipment/Computer Software and Hardware | $3,337 | $6,012 |
| Broadband Internet Access (monthly) | $60 | $80 |
| Training Seminar I Expenses | $1,584 | $2,484 |
| Real Estate and Improvements | $0 | $0 |
| Initial Inventory | $0 | $0 |
| Insurance (first year) | $570.09 | $570.09 |
| Attorney/Accountant Fees | $4,000 | $4,000 |
| Additional Funds - 3 months | $3,000 | $3,000 |
| ESTIMATED TOTAL | $23,211.09 | $29,026.09 |
| Type of Fee | Amount |
|---|---|
| Weekly Royalty | 20% of the basic weekly fee charged each team weekly and on certain other revenue received. |
| Player Membership Fees | The annual APA membership fee is currently $30 per player per year. |
| Royalty on Merchandise with APA Marks | Franchisees must pay 5% of the purchase price (including tax) of merchandise bearing any APA mark purchased for resale from a vendor other than an APA licensed supplier, if they choose to purchase such merchandise. |
| Software Upgrade Fee | From time to time (but no more often than once during a three year period) the franchisor reserves the right to charge all franchisees a software upgrade fee for new versions of the software program used to operate the franchised league or for major enhancements or upgrades to the software program. |
| Software Support and Maintenance Fee | $321 per year. (Subject to change annually. No increase will exceed 10% annually, without approval of the league operator advisory board.) |
| Advertising | As assessed by the advertising plan approved by area franchisees. Maximum – 5% of gross revenue. |
| Audit | If an audit reveals that the franchisee has understated amounts due to APA by more than 2%, the franchisee must pay the full amount owed plus interest at 1.5% per month, applicable late fees and the costs of the audit. |
| Late Fee (Memberships) | Unpaid membership fees plus $5 per unpaid member and interest of 1.5% per month (or the maximum amount allowed by law if less). |
| Late Fee (Royalties or Other Amounts Due) | Past due royalties or other payment plus $20 per late payment and interest of 1.5% per month (o or the maximum amount allowed by law if less). Late fees may be assessed again with respect to a delinquent amount if such amount is not paid on or before the due date of the next weekly royalty payment. |
| Bank Fee | $25 bank fee charged upon an automatic clearing house (ACH) transfer from the franchisee’s business account being denied due to the franchisee having insufficient funds to cover the costs of the failed transfer. |
| Late Fee (Scoring Teams Scheduled) | $20/week that matches are not scored after the deadline. |
| Late Fee (Local Singles Qualifier Boards) | $24 for each local singles qualifier board submitted 30 or more days after the board was played; $20 additional for each board submitted 60 or more days after it was played. |
| Late Fee (World Qualifier Paperwork) | $250 per slot for late submission of paperwork packets for each team advancing from the franchisee’s world qualifier (WQ). |
| Late Fee (Skill Level Reevaluation Forms) | $10 per day ($100 maximum). |
| Late Fee (Showdown Series Entries and Setup) | $100 for each 8-ball doubles team, 9-ball doubles team, wheelchair entry, and jack-and-jill team; $150 for each masters team late; $150 for each team captain team entered late; and $200 for each ladies team entered late. |
| Room Block Fee | Initial late fee of $50, then $25 thereafter for each additional calendar day late, up to a maximum of $250, at which time the sub block will be released. |
| Late Fee (Execution and Return of Franchise Documents or Other Agreements) | $100 |
| Unearned Slot Premium | $100-$450 |
| Extension of Conditional Term | $250 |
| Franchise Transfer Fee | $1,500 |
| Interim Manager Fee | $800 per week. |
| Other Additional Training | The franchisee’s expenses in attending any additional training franchisees, or their employees, choose to participate in, or are required by the franchisor to attend, and any training fee it might set (which will be fair and reasonable). |
| Additional Assistance Beyond What is Outlined in the Operations Manual and Franchise Agreement | The franchisor’s expenses plus reasonable charge for its services. |
| Regional Meeting Cancellation or Non-Use Fee | Will vary under the circumstances. |
| Annual League Operator Convention Cancellation Fee | Will vary under the circumstances. |
| Field Training Reimbursements | Will vary under the circumstances. |
| Supplier and Product Testing Fees | Will vary under the circumstances. |
| Costs and Attorneys’ Fees | Will vary under the circumstances. |
| Indemnification | Will vary under the circumstances. |
| Insurance Premium | If the franchisee opts to purchase insurance through LSC Insurance Agency, Inc., APA will collect the franchisee’s premium in one payment made annually. The amount will vary year to year. |
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