About Premier Pools and Spas and Pinnacle Pools and Spas Franchise
Premier Pools & Spas is a franchise system in which franchisees market, sell, and supervise the construction and remodeling of swimming pools and spas.
Franchisees do not perform the actual construction themselves; instead, they hire contractors to perform those services.
The franchise operates under either the Premier Pools & Spas or Pinnacle Pools & Spas brand name depending on market availability.
Premier Pools and Spas and Pinnacle Pools and Spas Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $45,000 | One-time payment upon signing |
| Royalty Fee | 3.5% of Gross Revenues for first 24 months, then 4% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $500 per month for first 12 months, then up to 1% of Gross Revenues | National brand fund |
| Total Investment Range | $53,000 – $112,500 | Includes build-out, inventory, working capital |
The investment range of $53K–$113K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3.5% of Gross Revenues for first 24 months, then 4% of Gross Revenues) and marketing fee ($500 per month for first 12 months, then up to 1% of Gross Revenues) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| Real Estate Expenses | $0 | $20,000 |
| Office / Showroom Expenses | $0 | $8,500 |
| Vehicle | $0 | $5,250 |
| Computer and Communication Equipment, Software and Services | $2,100 | $5,000 |
| Insurance | $2,000 | $8,750 |
| Training Expenses | $500 | $3,000 |
| Business Licenses / Permits | $200 | $1,000 |
| Professional Fees | $0 | $5,000 |
| Uniforms | $200 | $1,000 |
| Additional Funds for 3 Month Initial Period | $3,000 | $10,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | 50% of then-current initial franchise fee |
| Technology Fee | Up to 1% of Gross Revenues (not currently charged) |
| Audit Fee | Cost of audit or inspection and related expenses (expected $500 to $1,000 per day or partial day) |
| Late Fee | $100 plus 1% of past due amount per month |
| Interest | Lesser of 1% per month or maximum rate permitted by law |
| Additional Assistance Fee | Up to $500 per day |
| Indemnification Costs | Cost of defending and resolving indemnified claims (expected $250 to $500 per hour plus costs) |
| Dispute Resolution Costs | Costs, expenses, reasonable attorneys' fees (expected $250 to $500 per hour plus costs) |
| Project Management Software Maintenance | $200 per month for first user, $20 per additional user |
| System Standards Upgrades | Expenditures necessary to comply with modified System Standards |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 45 hours online plus 40 hours live (10 classroom + 30 on-the-job) |
| Classroom Training | 55 hours (45 online + 10 live classroom) |
| On-the-Job Training | 30 hours |
| Training Location | Online training at franchisee's choice; live training in Sacramento area, California |
| Additional Training | Optional and mandatory additional or refresher training programs, not more than 4 business days per year. Periodic conferences may also be required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive (conditional on meeting minimum performance obligations) |
| Exclusive Territory | Yes |
| Territory Size | Generally 1 to 4 counties |
| Description | Each franchisee is allocated a specified geographic territory designated by contiguous zip code regions, streets, physical boundaries, or city/county/political boundaries. Territory is exclusive for the allocated pool construction types as long as the franchisee meets minimum performance obligations (annual sales quotas and good standing). If performance requirements are not met, the franchisor may reduce territory size or eliminate exclusivity. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 7 years |
| Renewal Term | 5 years |
| Renewal Fee | 50% of then-current initial franchise fee |
| Renewal Conditions | Written notice, no default, sign new agreement, pay renewal fee. The new agreement may have materially different terms. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Written notice, transferee qualifications, no default, payment of transfer fee, sign general release, execute new franchise agreement, and others. Franchisor has right of first refusal. |
| Termination for Cause | If franchisee defaults or breaches the Franchise Agreement, or certain events occur (bankruptcy), or a material term is held invalid. Curable defaults include 10-day cure for late payments and reports, 30-day cure for many other defaults. |
| Non-Compete Period | During term and post-termination (subject to state law) |
| Non-Compete Details | During the franchise term: prohibitions on diverting business to competitors, involvement in any similar business, soliciting employees. After termination or expiration: same prohibitions on diverting business to competitors, involvement in any competing business, soliciting employees (subject to state law). |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | During the term of the Franchise Agreement, the franchisee (or one owner with at least 10% equity interest) must devote full time, energy, attention, and best efforts to management and operation of the Franchised Business. Officers, directors, owners, and managers may not participate in any other business without prior express written consent. |
| Required Suppliers | Pool equipment and building materials must be purchased from approved suppliers. Franchisor and affiliates are approved suppliers for certain services, and affiliate is sole approved supplier for printed marketing materials and promotional items. |
| Supply Restrictions | Must purchase signs, equipment, supplies, marketing materials, uniforms and other items according to franchisor written specifications. Must purchase certain items only from approved suppliers. Currently 16 approved supplier agreements with rebates of 0% to 25%. |
| Franchisor Revenue from Suppliers | In fiscal year 2021, revenues from suppliers on account of franchisee purchases were $9,483,136, all paid to affiliate PPMC. Affiliate also received $1,627,331 from direct sales to franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither the franchisor nor any affiliate offers direct or indirect financing. |
Premier Pools and Spas and Pinnacle Pools and Spas Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Premier Pools and Spas and Pinnacle Pools and Spas Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Premier Pools and Spas and Pinnacle Pools and Spas System Growth
Premier Pools and Spas and Pinnacle Pools and Spas currently operates 100 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 10 | 1 | 50 |
| 2020 | 24 | 1 | 73 |
| 2021 | 30 | 3 | 101 |
Transfers: 0 | Closures: 3
State Registrations
Registered in 23 states: AR, CA, CT, GA, HI, IL, IN, IA, LA, MD, MI, MN, MO, NE, NJ, NY, NC, ND, RI, SC, SD, WA, WI
Premier Pools and Spas and Pinnacle Pools and Spas Franchise — FAQ
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