|
Premier Pools & Spas Franchise ProfileHome Based Franchises > Home Repair Services |
What Are the Initial Costs to Open a Premier Pools & Spas Franchise?
To open a Premier Pools & Spas franchise, you should prepare for an initial investment that ranges from $58,950 to $119,000. This includes a franchise fee of $45,000. Additionally, you'll need to have a cash reserve of at least $58,950 and meet a net worth requirement between $100,000 and $2,000,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared for the investment.
What Are the Potential Earnings from a Premier Pools & Spas Franchise?
Premier Pools & Spas franchises can generate significant revenue, with an average annual revenue of approximately $5,097,811 per unit. The median annual revenue stands at $2,983,579, while some units have reported revenues as low as $489,500 and as high as $31,822,012. This potential for high earnings can make the franchise an attractive option for those looking to invest in the pool and spa industry.
What Are the Ongoing Fees for Premier Pools & Spas Franchisees?
Franchisees of Premier Pools & Spas are subject to ongoing fees that include a royalty fee of 3.5% on gross sales and a marketing fee of 1.5%. These fees contribute to the support and resources provided by the franchisor, helping franchisees to effectively market their services and maintain operational standards. Being aware of these ongoing costs is essential for managing cash flow and profitability.
How Quickly Can You Expect to Break Even with a Premier Pools & Spas Franchise?
Franchisees can expect to break even within approximately 12 months of operation. The investment payback period is around 15 months, which indicates a relatively quick return on investment compared to many other franchise opportunities. This timeline can be appealing for entrepreneurs seeking a business model with the potential for rapid financial recovery.
Premier Pools & Spas Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Premier Pools & Spas Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 50 | 72 | 101 |
| Net Change YoY | 22 | 29 | |
| Franchised Units | 50 | 72 | 101 |
| Net Change YoY | 22 | 29 | |
| Corporate Units | 0 | 1 | 1 |
| Net Change YoY | 1 | 0 |
Investment Overview
The Premier Pools & Spas franchise offers an initial investment range from $58,950 to $119,000, making it accessible for aspiring entrepreneurs. The franchise fee is set at $45,000, with additional ongoing costs including a 3.5% royalty fee and a 1.5% marketing fee. This structure allows franchisees to effectively budget their entry into the pool and spa industry.
Financial Performance
Franchisees can expect impressive financial returns, with average annual revenue per unit reported at $5,097,811 and a median of $2,983,579. The lowest annual revenue recorded is $489,500, while the highest reaches an impressive $31,822,012. Such figures indicate strong market potential and profitability for franchise owners.
Breakeven and Payback
Premier Pools & Spas demonstrates a favorable financial outlook with a breakeven time of just 12 months and an investment payback period of approximately 15 months. This rapid return on investment is appealing for new franchisees looking to establish a profitable business quickly.
Franchise Growth
The franchise has shown consistent growth, increasing from 50 franchised units in 2020 to 101 in 2022. This upward trend reflects the brand's expanding market presence and the increasing demand for pool and spa services, indicating a robust opportunity for new investors.
Operational Expenses
While the average annual revenue is substantial, operating expenses can be high, totaling around $6,118,542. This figure represents approximately 120% of revenue, highlighting the importance of effective cost management for franchisees to ensure profitability despite high operational costs.
Support and Training
Premier Pools & Spas provides comprehensive training and ongoing support for franchisees, ensuring they are well-equipped to navigate the industry. Initial training expenses range from $2,500 to $5,000, which is a crucial investment in building a successful franchise operation and maintaining high service standards.
Frequently Asked Questions
The initial investment for a Premier Pools & Spas franchise ranges from $58,950 to $119,000, which includes the franchise fee and other startup costs.