For one U.S. American Poolplayers Association territory, this structural scenario range combines an estimated $15,000 to $81,000 of pre-tax residual business profit with the market value of the management work the owner performs. The base scenario is about $117,000. The 2026 Franchise Disclosure Document does not report sales, profit, owner compensation, or any other financial performance result.
Legal franchisor: American Poolplayers Association, Inc. FDD: issued April 29, 2026. Item 19 status: no financial performance representation. Applicable population: U.S. franchised local league businesses operating in assigned territories; Item 20 reported 356 franchised outlets at December 31, 2025. (2026 disclosure, Item 20, page 57.) Benchmarks: U.S. Census Bureau employer-firm revenue and expense data for NAICS 71399, plus May 2025 Bureau of Labor Statistics wages for Entertainment and Recreation Managers, Except Gambling. Checked: July 17, 2026.
FDD citations are provided by year, Item, and page because no matching public copy was verified on the franchisor-controlled website. The official U.S. franchise information page is linked separately.
The 2026 FDD provides no system sales or earnings result.
Applied to the Basic Weekly Fee and certain other revenue.
U.S. franchised league businesses at year-end 2025.
Generally required before the franchisor will consider management delegation.
2025 U.S. median wage for a recreation-management proxy.
What does the 2026 APA FDD actually say about owner earnings?
It says no system earnings number at all. This is an official finding for the current U.S. territory format: Item 19 states that American Poolplayers Association, Inc. does not make representations about future franchisee financial performance or past company-owned or franchised outlet performance. It supplies no average sales, median sales, operating profit, EBITDA, owner compensation, or percentage-achieving result. (2026 disclosure, Item 19, page 57.)
That absence matters because revenue cannot be inferred from Item 20 outlet counts, the initial investment, the size of the national membership network, or isolated franchisee testimonials. The Federal Trade Commission explains that franchisors are not required to make an Item 19 claim, but any claim they do make must have a reasonable basis and appear in the FDD. Buyers should request written substantiation for any separate income projection. See the FTC consumer guide to buying a franchise.
The Weekly Team Fee is a collection from teams. The document says it is divided between the Basic Weekly Fee, described as the principal source of league income, and a restricted Players Fund used for prizes, travel, tournaments, banquets, and similar player benefits. Treating the full Weekly Team Fee as owner revenue would overstate the economic base. (2026 disclosure, Item 6, page 22.)
How is the annual earnings estimate constructed?
The estimate starts with team-based Basic Weekly Fee revenue, then applies a broad government expense benchmark. It is estimated—not official—and covers one U.S. territory for an illustrative mature operating year. Every scenario uses a different team count, Basic Weekly Fee, active-week assumption, all-in residual margin, and owner-labor value.
- Team counts of 75, 125, and 200 are editorial scale cases. They are not a system average, median, quartile, or probability distribution. The 100-team figure is used only as a structural reference because Item 15 says the franchisor generally will not even consider management delegation until that level is reached.
- Basic Weekly Fees of $25, $30, and $35 are analytical assumptions. The League Operator may set the local Weekly Team Fee, while the disclosure does not state the Basic Weekly Fee/Players Fund split. The official league-fee rules confirm that each League Operator establishes the local amount. Public local examples show total Weekly Team Fees of $40 in Sacramento and $50 in Northwest Missouri. Those local totals are not national same-brand revenue evidence, so the model uses lower Basic Weekly Fee inputs and excludes the Players Fund.
- Active weeks of 48 to 50 are editorial assumptions. The disclosure describes year-round league play over three sessions but also notes that summer participation can decline. The model does not assume every team is billed for all 52 weeks.
- The central residual ratio is 20.1%. U.S. Census Bureau Service Annual Survey data show $21.495 billion of 2022 revenue and $17.178 billion of expenses for NAICS 71399 employer firms, producing a 20.08% revenue-minus-expense residual. The scenarios use that ratio minus three percentage points, the central ratio, and plus three percentage points.
- The owner-labor component uses BLS wage percentiles. The scenarios use $61,060, $79,520, and $104,770—the May 2025 25th percentile, median, and 75th percentile annual wages for Entertainment and Recreation Managers, Except Gambling. This is a labor-value proxy, not a promised salary or cash distribution.
| Scenario | Revenue and margin calculation | Residual profit | Owner-operator benefit |
|---|---|---|---|
| Conservative | 75 teams × $25 × 48 weeks = $90,000; 17.1% residual ratio | $15,400 | $76,400 |
| Base | 125 teams × $30 × 50 weeks = $187,500; 20.1% residual ratio | $37,700 | $117,200 |
| Upside | 200 teams × $35 × 50 weeks = $350,000; 23.1% residual ratio | $80,800 | $185,600 |
Pre-tax economic benefit before financing principal and personal income taxes
Interpretation: team scale and local Basic Weekly Fee assumptions drive much of the spread; the owner-labor component is also material. Sources: 2026 FDD, Items 6 and 15; Census revenue series; Census expense series; and BLS May 2025 national wage data. Values are rounded to the nearest $100 after full-precision calculations.
Residual business profit is the modeled cash residual after the all-in employer-firm expense allowance, which is treated as including ordinary operating payroll and disclosed recurring fees. Owner compensation is excluded and added separately as labor value. Capital expenditures, financing principal, and personal income taxes are excluded. The published Census aggregate does not permit a clean separation of interest or depreciation, so this analysis makes no additional adjustment for either item. The Census expense glossary confirms that capital expenditures are outside operating-expense measures.
How does owner involvement change the result?
Owner involvement changes the interpretation more than it changes the business cash itself. The official 2026 FDD requires the designated Manager to personally manage the U.S. Franchised League. The franchisor generally will not consider delegation until the Conditional Term is completed and at least 100 teams regularly participate, and it may still refuse. Therefore, the normal case is active owner management—not passive ownership. (2026 disclosure, Item 15, page 50.)
The lower figures below are the estimated residual business profit after an all-in employer-firm expense allowance. The upper figures add the estimated market value of the owner's management labor. That added amount is compensation for work performed; it is not passive business profit, a guaranteed salary, or an extra cash payment automatically made by the company.
The gap represents the modeled market value of management labor performed by the owner
Interpretation: the model's owner-operator number is substantially higher than residual profit because the required management role has economic value. A buyer should not treat the gap as passive income. The labor values use the BLS 25th percentile, median, and 75th percentile for the nearest practical national management proxy.
A delegated manager does not automatically create a passive model. Written consent from the franchisor is required, the 100-team level is only a condition for consideration, and the owner still bears franchise and business risk. If a territory can support a paid manager, the owner's residual profit is the relevant comparison—not the larger owner-operator benefit.
Which recurring obligations reduce the cash available to an owner?
The 20% royalty on the Basic Weekly Fee is the dominant disclosed recurring franchise charge. This is official 2026 FDD evidence for the U.S. league format. Other recurring or potentially recurring obligations include software support, insurance, computer maintenance, and an approved advertising plan. The model treats the Census expense ratio as all-in and therefore does not subtract these fees a second time.
Because the U.S. Census benchmark is an all-in revenue/expense relationship and does not separately identify franchise royalties, subtracting the 20% royalty again would create an unsupported double charge. This is also a limitation: the broad benchmark may not reflect the system's exact fee mix or home-based territory economics.
What can move an owner's annual result outside this range?
Team count and the Basic Weekly Fee are the largest modeled earnings drivers, while the undisclosed Players Fund split is the largest unresolved measurement issue. This is an estimated conclusion for a U.S. territory, not an official system finding. The model also has material sensitivity to staffing, collections, local marketing, travel and tournament administration, territory demographics, and the amount of owner time required.
| Variable | Why it matters | What the current disclosure reveals | What remains unknown |
|---|---|---|---|
| Regular team count | Revenue scales directly with billable teams in the structural model. | Growth requirements exist; 100 teams is a delegation-consideration marker. | System average, median, distribution, maturity, and attrition by territory. |
| Basic Weekly Fee | It is the principal disclosed income source and royalty base. | The League Operator sets the amount for the local market. | Recommended fee, national range, and actual fee by territory. |
| Players Fund allocation | It separates restricted collections from owner revenue. | The Weekly Team Fee must be split between Basic Weekly Fee and Players Fund. | The dollar or percentage split used by comparable U.S. leagues. |
| Owner workload | It determines how much of owner benefit is labor compensation rather than residual profit. | The designated Manager must personally manage the league. | Actual hours, seasonality, assistant staffing, and market-specific manager replacement cost. |
| All other operating costs | Local payroll, marketing, travel, technology, insurance, and administration determine the residual margin. | Selected recurring obligations are disclosed. | Comparable territory expense statements and unit-level operating margins. |
The NAICS match is also imperfect. The Census definition for NAICS 713990 includes recreational sports teams and leagues, pool halls, billiard parlors, and other amusement and recreation businesses. This is a territory-based league business rather than a typical recreational facility, so the 20.1% residual ratio is a broad proxy, not a same-brand margin.
What should a buyer verify before relying on any income estimate?
A buyer should replace every major scenario assumption with territory-specific written evidence. This is a verification requirement, not an earnings claim. The relevant population is the specific U.S. territory being offered and, where possible, mature territories with similar demographics, team counts, staffing, and fee structures.
- Ask for the franchisor's written substantiation for any sales, profit, salary, cash-flow, or team-growth statement made outside Item 19, and reconcile it to the 2026 FDD.
- Obtain the current recommended Weekly Team Fee and the exact Basic Weekly Fee/Players Fund allocation for the offered territory.
- Request anonymized or permissioned operating statements showing team count, billable weeks, collections, royalty, payroll, local marketing, travel, tournaments, technology, insurance, and owner compensation.
- Use Item 20 and Exhibit Q to interview current and former League Operators. Ask separately about mature versus developing territories, owner hours, assistants, team retention, summer seasonality, and management delegation.
- Confirm whether a paid manager is contractually permitted in the buyer's circumstances. Item 15's 100-team reference is not automatic approval.
- Keep debt service separate. Item 10 says the franchisor does not generally offer financing or guarantee obligations, so loan amount, rate, term, and principal repayment are buyer-specific. Personal income taxes are also excluded.
What is the strongest defensible earnings range?
The strongest defensible range from the available evidence is about $76,000 to $186,000 of estimated annual owner-operator benefit, with a $117,000 base scenario. It is scenario-based, not official, and applies to one U.S. territory in an illustrative operating year. Within that total, estimated residual business profit is only about $15,000 to $81,000; the balance represents the modeled value of active management labor.
The most important earnings driver is sustained billable team count multiplied by the territory's Basic Weekly Fee. The largest unresolved uncertainty is the absence of Item 19 sales and expense data—especially the undisclosed split between the Basic Weekly Fee and Players Fund. A buyer should verify Item 19's no-FPR status, demand written substantiation for every separate financial claim, and use franchisee interviews to replace the scenario's team, fee, workload, and expense assumptions with comparable-territory evidence.
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