Pool Scouts Franchise Costs, Fees & Owner Salary (2023)

Pool Scouts, a franchise that specializes in professional pool cleaning and maintenance services for homeowners, was founded in 2016. The company quickly started franchising in the same year, indicating a rapid expansion strategy right from its inception. Pool Scouts is part of Buzz Franchise Brands, a multi-brand franchising company that started in 2012.

The headquarters of Pool Scouts is located in Virginia Beach, VA, serving as the central hub for its operations. This location supports the company's franchises across the United States with a focus on providing high-quality pool services, including cleaning, maintenance, and minor repairs. The company prides itself on its commitment to professionalism and customer satisfaction, ensuring that pools are ready for use at all times.

Pool Scouts stands out in the franchising industry by being part of a well-established parent company known for rapidly growing its brands and providing extensive support to its franchisees. The leadership team at Pool Scouts brings a wealth of experience across various franchise brands, contributing to the brand's growth and the success of its franchise partners​​​​.

Initial Franchise Fee

The Initial Franchise Fee for a single franchise agreement is $35,000. There are discounts available for qualifying franchises under the Community Heroes Program ($2,500 discount) and for veterans of the U.S. Armed Forces under the IFA's VetFran Program (20% discount).

Cumulative Franchise Fee

For an Area Development Agreement to develop 2 or 3 franchises, the Cumulative Franchise Fee is $60,000 for two territories and $85,000 for three territories.

Integrated Business Management System Fee

The monthly fee for the integrated business management system is $395, which includes two VOIP seats. Additional territories are charged an additional $50 per month.

Local Marketing

Franchisees must spend a minimum of $5,000 annually on local marketing within their territory.

Royalty and Service Fee

Franchisees must pay a monthly Royalty and Service Fee of 8% of Net Revenue. "Net Revenue" includes all revenue from services offered, less first-time customer discounts and returns. This fee is due monthly for the previous month and is invoiced at the end of each month​​.

Marketing Fee

The monthly marketing fee is 2% of Net Revenue. These fees are collected for brand development, Internet marketing, and production of advertising and marketing materials. The Marketing Fees are allocated as determined by the franchisor for promoting the brand and system and are not considered the franchisor's asset​​​​.

Vehicle Purchase or Lease

The initial costs for bank or lease financing and vehicle decals are estimated to be between $6,500 and $9,000 per service vehicle.

Transfer Fee

A transfer fee for the Franchise Agreement is 50% of the then-current Initial Franchise Fee. There is no transfer fee for the transfer of the Area Development Agreement.

Renewal Fee

The renewal fee for each Franchise Agreement is $5,000.

The franchisor provides a comprehensive training program for franchisees, which includes:

• Operations Training: A four (4) to six (6) day program conducted virtually and in Virginia Beach, Virginia, covering critical aspects of operating a Pool Scouts Franchised Business. This training is required for both the individual franchisee and any Designated Manager before opening the Franchised Business. The franchisor does not charge for this training, but franchisees are responsible for any expenses incurred, such as travel and lodging​​.
• Advanced Training and Meetings: The franchisor may provide and require attendance at 1-to-2-day advanced training sessions or national/regional meetings focused on improving business skills to increase profitability. While there is no charge for these sessions, franchisees are responsible for all related expenses​​​​.
• Comprehensive Training Program: The training duration is 5-9 days, encompassing both classroom and on-the-job training. It includes subjects like pool service industry knowledge, product knowledge, software overview, back-office setup, advertising and marketing strategies, call center operations, and technician recruitment​​​​.
• Additional Training: Any further training required by the franchisee or their employees outside the regular schedule will be billed at $750 per day per trainee, plus any travel expenses. This fee is subject to change with notice​​​​.
• Call Center Operation Support: The franchisor or its designee will provide call center operations for accepting customer service requests, aiding in the business operation​​.
• Training for New Designated Managers: If a new Designated Manager is hired, they must be approved by the franchisor, successfully complete the required training, and pass the comprehensive test on the Operations Manual content​​.
• Continuous Support: The franchisor offers ongoing telephone and/or internet support for operational queries during normal business hours​​.

Franchisees are granted an exclusive territory, defined in Schedule A of the Franchise Agreement, based on factors such as total population and target household demographics. Changes to the territory require franchisor consent. Franchisees must operate within their designated territory but may be allowed to provide services outside it under certain conditions, such as national/regional account agreements or if the franchisee's Designated Manager is incapacitated.

The franchisor retains rights to the internet and may sell products and services outside the franchisee's territory. Franchisees may offer services within their territory based on criteria in the Operations Manual, and their rights to be a franchisee do not depend on achieving specific sales volumes or market penetration. Exclusive territories are also granted under Area Development Agreements, with specific development schedules​​​​​​​​.

The document specifies that during the service season and for reasonable periods before and after the season, as defined in the Operations Manual, franchise services must be provided under the direct supervision and control of the franchisee or a full-time Designated Manager approved by the franchisor. The franchisor will not approve a Designated Manager before they have successfully completed the Operations Training.

Franchisees are required to use their best efforts to successfully operate and grow their Franchised Business, which implies that franchisees cannot have a material ownership or operational interest in any other business without the franchisor's prior written consent.

This requirement indicates that the franchisor expects active involvement from the franchisee in the business, suggesting that passive investment might not be permissible or is at least heavily restricted​​.