About Premier Pools and Spas and Pinnacle Pools and Spas (Building of Swimming Pools) Franchise
Premier Pools & Spas is a franchise system in the business of marketing, selling, and supervising 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 trade name, depending on availability in the franchisee's area.
Premier Pools and Spas and Pinnacle Pools and Spas (Building of Swimming Pools) 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 |
| Project Management Software Maintenance Fee | $200 per month for first user, $20 per additional user |
| Additional Assistance Fee | Up to $500 per day of additional assistance |
| 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) |
| System Standards Upgrades | Expenditures necessary to comply with modified System Standards |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 45 hours online + 40 hours live (10 classroom + 30 on-the-job) |
| Classroom Training | 55 hours total (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 to exceed 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 at least 1 to 4 counties, designated by contiguous zip code regions, streets, physical boundaries, or city/county/political boundaries |
| Description | Each franchisee receives an exclusive territory for the types of pool construction allocated (gunite, fiberglass, and/or vinyl). Exclusivity is contingent on meeting annual sales quotas and remaining in good standing. If franchisee fails to meet minimum performance requirements, franchisor may reduce territory size, eliminate exclusivity, or terminate the agreement with 30 days written notice. |
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 (which may have materially different terms), pay renewal fee |
| Transfer Fee | $10,000 |
| Transfer Conditions | Written notice, transferee qualifications, no default, payment of transfer fee, sign general release, execute new franchise agreement, franchisor has right to approve all transferees in sole discretion, franchisor has right of first refusal |
| Termination for Cause | If franchisee defaults or otherwise breaches the Franchise Agreement, or certain events occur (bankruptcy), or a material term is held invalid. 10-day cure period for late payments and reports; 30-day cure period for many other defaults. |
| Non-Compete Period | During term and post-termination (subject to state law) |
| Non-Compete Details | During the term: prohibitions on diverting business to competitors, involvement in any similar business, soliciting employees. After termination or expiration: 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 | You (if an individual) or one of your owners (if an entity) owning at least 10% equity interest must devote full time, energy, attention, and best efforts to the management and operation of the Franchised Business. You and your officers, directors, owners and managers may not participate in any other business without franchisor's prior express written consent. |
| Required Suppliers | Must purchase pool equipment, building materials, and certain items and services only from approved suppliers. Franchisor's affiliate is the sole approved supplier for printed marketing materials and promotional items. |
| Supply Restrictions | Must purchase all signs, equipment, supplies, marketing materials, uniforms and many other items according to franchisor's written specifications. Must purchase certain items only from approved suppliers. Currently 16 supplier agreements with rebates of 0% to 25%. |
| Franchisor Revenue from Suppliers | In fiscal year 2021, revenues from suppliers on account of purchases by franchisees were $9,483,136, all paid to affiliate PPMC. Affiliate revenue from direct sales to franchisees was $1,627,331. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your notes, leases or any other obligations. |
Premier Pools and Spas and Pinnacle Pools and Spas (Building of Swimming Pools) 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 (Building of Swimming Pools) 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 (Building of Swimming Pools) System Growth
Premier Pools and Spas and Pinnacle Pools and Spas (Building of Swimming Pools) 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 (Building of Swimming Pools) Franchise — FAQ
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