American Poolplayers Association

The royalty rate of 20.0% is substantially higher than the typical 6.0-8.0% for this franchise type. What specific services, support, or benefits justify this elevated royalty structure?

Given the 10.0% annual turnover rate, which exceeds the typical 0.0-3.4% range, what factors are driving the consistently high transfer rates (31-33 units annually)?

The franchise fee of $10,000 is significantly lower than typical fees of $39,500-$55,000. What is the total initial investment required beyond the franchise fee, and what does this include?

One litigation case was initiated against the franchisor during the 3-year period. What was the nature of this case, what was the outcome, and has it been resolved?

The initial term of 2 years is substantially shorter than the typical 10-year initial term. What is the rationale for this shorter commitment period, and how frequently do franchisees renew at the end of the 2-year initial term?

Can you provide specific financial performance data (Item 19 equivalents) such as median or average unit sales volumes, profitability metrics, and customer acquisition costs for existing franchisees?

The non-compete clause is 2 years with no specified mileage radius. How is the geographic scope of the non-compete determined if a franchisee does not renew or is terminated?

What are the 24 specific termination causes referenced in the franchise agreement, and how frequently has each been invoked in practice?

The franchise agreement requires personal guarantees from all owners and their spouses, even non-owner spouses. Can you explain the circumstances under which the franchisor would enforce spouse liability, and are there any limitations on this requirement?

The transfer fee of $2,000 is below typical range. What does this fee cover, and are there additional costs associated with franchisor approval of transfers beyond this stated fee?

All disputes must be resolved through binding arbitration in St. Louis after mediation. As a prospective franchisee outside St. Louis, what are the anticipated travel and legal costs associated with dispute resolution?

General liability insurance is required at $1,000,000. Is this amount consistent with claims filed against franchisees in this system, and has the franchisor required increased coverage amounts?

Over the past 3 years, how many franchisees have operated under the current franchise agreement terms, and how many have renewed their agreements at the end of their 2-year initial term?

The renewal conditions count is 4, which is below the typical 6.0-8.0 range. What are these specific renewal conditions, and what percentage of franchisees meet these conditions when their initial term expires?

Three units experienced closure or other cessation in 2022, and three in 2023. What were the reasons for these closures, and what support was provided to these franchisees?

What specific metrics or benchmarks should a new franchisee expect to achieve during the 2-year initial term in order to be eligible for renewal?

Are there any upcoming changes to the franchise fee ($10,000), royalty rate (20.0%), or other material terms that have been approved or are under consideration?

Can you provide contact information for 10-15 existing franchisees, including those who have transferred their units, so I can discuss their actual operating costs and revenues?