Pool Scouts Franchise in 2024: Costs, Fee & FDD
Looking to invest in a Pool Scouts franchise? Discover the brand’s growth potential, costs, earnings, and competitive edge in the booming pool care industry. Read our in-depth analysis to make an informed decision.
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Pool Scouts is a leading pool cleaning and maintenance franchise launched by Buzz Franchise Brands, a company known for its innovative and customer-focused services. The franchise was established to address a significant gap in the pool care industry, offering a reliable and professional alternative in a market often dominated by independent operators. By prioritizing professionalism, efficiency, and customer satisfaction, Pool Scouts has positioned itself as a trusted name for pool owners seeking expert care and dependable service.
The franchise provides a comprehensive suite of pool services, including routine cleaning, maintenance, and seasonal tasks such as pool openings and closings. Additional offerings include water testing and minor repairs, making it a one-stop solution for pool care needs. Its core customers are suburban homeowners, particularly those in regions with warmer climates or high concentrations of residential pools. Pool Scouts appeals to families and professionals who value convenience and the assurance of well-maintained, safe pools.
Currently, Pool Scouts operates across more than 120 territories in the United States, with a strong presence in states like Florida, Texas, and California. Its consistent growth reflects the increasing demand for professional pool services, and while it is currently U.S.-focused, its scalable model suggests potential for future international expansion. Serving thousands of customers annually, the franchise has solidified its reputation as a leader in the pool care industry.
Franchisees benefit from Pool Scouts’ robust support system, which includes in-depth training on technical skills, operations, and customer service. Ongoing assistance is provided through marketing support, technology tools, and operational guidance to ensure success. The franchise’s streamlined processes and proprietary systems help franchisees efficiently manage their businesses. With its strong brand presence and emphasis on quality, Pool Scouts offers an attractive opportunity for investors looking to enter the growing home services market.
Pool Scouts Franchise Insights
- Pool Scouts started franchising in 2016 and has grown to 81 locations in the U.S., including 79 franchised units and 2 corporate units, showcasing steady expansion.
- As part of Buzz Franchise Brands, Pool Scouts benefits from a parent company with a proven track record in developing successful franchise systems.
- Pool Scouts leverages a proprietary scheduling and operations platform, making it easier for franchisees to manage clients efficiently and scale their business.
- With a focus on warm climates and pool-dense suburban areas, Pool Scouts territories are strategically selected for maximum customer demand and growth.
Pool Scouts Franchise Key indicators
Growth YOY (%)
12%
vs industry 4%
Total U.S. Franchised Units
79
3-Year Failure Rate
9%
vs industry 13%
Sales-to-Investment ratio
2.1:1
How much does it cost to open a Pool Scouts franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Pool Scouts franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Pool Scouts franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Pool Scouts below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Setup Fee | $1,000 | $1,000 |
| Mailing List Fee | $300 | $500 |
| Postcard Fees | $18,060 | $18,060 |
| Search Engine Optimization Fee | $3,600 | $3,600 |
| Digital Marketing Fees (first 3 months) | $3,000 | $3,000 |
| Integrated Business Management Pre-Opening Fee | $395 | $1,185 |
| Bookkeeping Services | $1,050 | $1,185 |
| Vehicle & Decals | $1,800 | $5,000 |
| Initial Training | $1,000 | $2,000 |
| Insurances | $2,100 | $4,200 |
| Professional Fees | $0 | $2,000 |
| Licenses | $500 | $1,500 |
| Computer, Internet Devices, Phones, Software Setup | $0 | $1,500 |
| Additional Funds for 3 months | $20,000 | $40,000 |
| TOTAL | $102,805 | $134,830 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Pool Scouts franchise, the required capital involves both the initial investment costs and a net worth requirement set by Pool Scouts. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $102,805 to $134,830. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement Franchisors in similar industries typically require liquid assets equal to around 30% of the total investment, which would be approximately $30,000 to $40,000 for Pool Scouts.
- Net Worth Requirement A net worth of at least twice the total investment is common, translating to an estimated $200,000 to $270,000 for this franchise.
How much does a Pool Scouts franchise owner make?
Calculating the salary of a Pool Scouts franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Pool Scouts franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Pool Scouts Revenue & Gross Sales
Pool Scouts has demonstrated steady financial performance, with a median gross sales figure of $249,213, showcasing the brand’s ability to generate consistent revenue for franchisees.
Which key factors impact the average revenue performance of Pool Scouts franchisees?
The performance of U.S. franchisee median gross sales for Pool Scouts is likely influenced by several key factors. First, increased demand for professional pool cleaning and maintenance services, driven by a rise in residential pool ownership and a heightened focus on home maintenance, has expanded the customer base. Additionally, the franchise’s streamlined operational processes, proprietary scheduling technology, and targeted marketing campaigns have helped franchisees attract and retain clients effectively. Economic recovery and higher discretionary spending in many regions may also have played a role in boosting sales. Furthermore, Pool Scouts’ strong franchisee support system, including training and marketing assistance, enables new and existing franchisees to optimize operations and grow their businesses. This combination of market demand and franchise infrastructure likely contributed to the impressive median gross sales performance.
Pool Scouts Franchise Operational Costs
If you were to open a Pool Scouts franchise, the key primary ongoing operational costs would likely include:
- Labor Costs Wages for employees, including pool technicians, who are crucial for delivering cleaning and maintenance services.
- Vehicle Expenses Costs related to maintaining and operating service vehicles, including fuel, insurance, and repairs.
- Supplies and Equipment Regular purchases of pool cleaning chemicals, tools, and equipment required for day-to-day operations.
- Technology Fees Expenses for using proprietary scheduling and management software provided by the franchisor or third-party systems.
- Insurance General liability, worker’s compensation, and other business-related insurance policies.
- Utilities and Office Expenses Costs for running a home-based or small office, such as internet, phone, and utilities, if applicable.
- Local Marketing Allocated funds for territory-specific advertising to acquire and retain customers.
These operational costs are essential for maintaining service quality and growing your business.
Pool Scouts Franchise Fees
When considering Pool Scouts as a franchise opportunity, it’s important to account for the primary ongoing fees, which ensure operational support, branding consistency, and marketing efforts. Here’s a breakdown based on the provided information:
- Royalty and Service Fee Franchisees pay 8% of net revenue monthly, which covers the use of branding, operational systems, territory rights, and other support services essential for running the business.
- Marketing Fee A 2% of net revenue monthly fee is allocated to brand development, advertising, public relations, and other marketing-related activities that benefit all franchisees.
- Additional Potential Fees There may be other costs outside of royalties and marketing, such as technology fees, training updates, or territory expansion fees, which can vary depending on specific operational needs.
These fees are integral to the franchise system, ensuring ongoing support and resources for franchisees to succeed. Always confirm the exact details with the franchisor during the decision-making process.
Pool Scouts Franchise Earnings
Based on the most recent data, Pool Scouts franchisees operating under an owner-operator model reported median gross sales of $249,213. With the operational efficiencies and support offered by the franchise system, owner-operators could achieve earnings of approximately $37,382.
While earnings can vary based on territory, operational management, and local market conditions, Pool Scouts provides the tools and resources necessary to help franchisees optimize their revenue and manage costs effectively. Prospective franchisees should carefully evaluate these figures and consider their financial goals and local market potential before making an investment decision.
How to Open a Pool Scouts Franchise
Becoming a Pool Scouts franchisee is a rigorous process that involves financial scrutiny, extensive training, and thorough evaluation. However, it offers the potential for a lucrative business opportunity backed by a globally recognized brand and comprehensive support system.
The full process for how to open a Pool Scouts franchise is outlined below:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application and Interview After reviewing the FDD, you’ll be asked to complete a franchise application form. Pool Scouts will likely arrange an interview or a discovery day, either virtually or in person, where you can ask further questions and get a better understanding of the business model, the franchisor’s expectations, and the level of support you will receive.
- Financial Evaluation and Approval Pool Scouts will assess your financial standing to ensure that you meet the financial requirements to become a franchisee. This includes having the necessary liquid assets and net worth to support the investment. If everything aligns, you’ll be approved to move forward in the process.
- Signing the Franchise Agreement Once you’ve been approved, you’ll enter into a formal agreement with Pool Scouts. This agreement will outline the terms and conditions, including fees, support, and the rights to operate the franchise under the Pool Scouts brand.
- Training and Onboarding After signing the agreement, you’ll undergo a comprehensive training program. Pool Scouts provides training on technical pool cleaning and maintenance skills, customer service, business operations, and how to use their proprietary systems. This is designed to equip you with everything you need to run your franchise successfully. Training usually takes place before you begin operations, and it might last a few weeks.
- Site Selection and Setup If you plan to operate from a physical location or office, Pool Scouts will assist you with site selection, ensuring that it is in an area with the right customer demographic. The franchise will provide guidance on how to set up your operations, including acquiring service vehicles, equipment, and technology.
- Launch Marketing and Pre-Opening Activities Before opening, Pool Scouts will help you implement pre-launch marketing strategies to generate awareness and attract your first customers. This may involve local advertising, promotional offers, and community engagement activities, all coordinated with Pool Scouts’ marketing team.
- Opening and Starting Operations Once everything is in place, you’ll officially start operations. Pool Scouts will continue to offer support through ongoing marketing, business consulting, and operational advice to ensure your franchise runs smoothly. The focus during this stage is on delivering quality service to customers and building the business within your territory.
Pros & Cons
Pros
Established Brand with Strong Market Demand: Pool Scouts benefits from a well-established brand with a proven business model. The demand for pool cleaning and maintenance services continues to grow, particularly in warmer climates, which makes it a reliable market to enter.
Scalable Business Model: The franchise offers the potential for growth, especially in regions with high demand for pool services. The operational system, including proprietary scheduling tools, helps streamline processes and increase efficiency.
Cons
Labor-Intensive Operations: Running a pool cleaning and maintenance service can be physically demanding and labor-intensive. Managing employees and vehicles may require more time and effort compared to other types of businesses.
Seasonal Demand: While pool services are in high demand in certain areas, the business can be subject to seasonal fluctuations, especially in colder regions where pools are not used year-round.
