American Poolplayers Association (APA)

The royalty rate of 20% is more than double the typical rate for sports & recreation franchises (6-8%). How is this higher rate justified, and what specific services and support does it fund?

Your advertising fund rate of 5% is 2.5 times higher than typical. How are these funds allocated, and can franchisees see detailed accounting of fund usage?

The initial contract term is only 2 years compared to the typical 10-year term. Why is the term so short, and what happens to a franchisee's business position at the end of year 2?

You have 24 termination causes in the franchise agreement, which exceeds typical ranges. Can you provide a summary of the most common reasons franchisees have been terminated?

What were the specific circumstances of the 1 litigation case where APA was named as defendant? Is this matter resolved or ongoing?

Your transfer fee of $2,000 is significantly lower than typical ($8,937-$18,437). Is this the complete transfer cost, or are there additional administrative or approval fees?

Transfer activity has increased from 24 units in 2022 to 34 units in 2024. What is driving this high transfer rate, and does APA have concerns about frequent ownership changes?

Only 4 renewal conditions are specified compared to the typical 6-8. What happens if a franchisee reaches the end of their 2-year term and wants to continue—is renewal automatic or discretionary?

The non-compete clause restricts activity for 2 years but specifies 'N/A miles.' Does this mean there is no geographic radius, and the non-compete applies only within the franchisee's original territory?

With no renewal options listed and a 2-year initial term, what is the practical total commitment a franchisee should expect to make?

Item 19 financial performance disclosures are not provided. Are there any financial performance benchmarks, average unit volumes, or profitability data you can share with prospective franchisees?

The franchise fee of $10,000 is significantly below typical ($39,500-$55,000). What does this initial fee cover, and what are the typical startup costs beyond the franchise fee?

Why are renewal conditions (4 specified) substantially fewer than termination causes (24)? Does this suggest renewal is less protected than termination is regulated?

The litigation history shows APA as defendant in 1 case. What was the nature of this case, what was the outcome, and has APA made any policy changes in response?

Has APA experienced any mass closures, seasonal patterns, or geographic clusters of unit exits that you can share?

Given the high transfer rate, how does APA vet potential new unit owners? Are existing franchisees required to find their replacement, or does APA approve new owners?

What specific ongoing support does the $388 technology fee cover, and has this fee been stable or increasing over time?

The personal guarantee and indemnification requirements are franchisor-favorable. Can these terms be negotiated or modified based on franchisee creditworthiness?

With mandatory binding arbitration and no class action rights, how many franchisees have pursued arbitration, and what have been typical outcomes?

Are there any geographic territories that are currently unavailable or saturated, and how does APA manage encroachment in areas with multiple franchisees?