American Poolplayers Association – Franchise Review

APA – The American Pool Players Association was founded by professional pool players Larry Hubbart and Terry Bell in 1981. APA has been operating in franchises since 1982. APA has run a local franchise-based amateur pool league system that includes eight balls and nine ball, with a unified set of APA rules. Its headquarters is based in Missouri, USA.

The franchisor offers individuals, partners, companies or LLC a franchise to operate a pool league in an allocated geographic territory. The formats designated by the franchisee must be followed by a franchisee to operate the association's leagues. The basic formats for league play are eight- and nine-ball games, with matches between teams of five. At the end of 2006, APA had 284 units. The guarantee of any note, lease or obligation is not offered by a franchisor, and they offer no financing to franchisees.

Before opening a franchise business, the franchisee is required to attend and complete an initial training program for new franchisees. Achieving the satisfactory level of franchisors is required. This initial training program lasts 5 ½ days, consisting of hands-on training, classroom instruction, training with the franchisor's FMS computer software system, and an interactive league game presentation. A specific territory is assigned to the franchisee, usually defined by county lines, which APA and the franchisee believe to be covered by the franchisee. A franchisee or manager (if a corporation) or LLC or partnership must reside permanently in the designated territory. The franchisee's office can be located anywhere within the territory. The franchisor is not authorized to license anyone else to operate a pool league using its trademarks within the franchisee's designated territory.

The franchise agreement is valid for a conditional period of 2 years. Only if the franchisee can meet the specified requirements can the franchise agreement be extended for a regular period of 5 years. $ 250 is the conditional term extension fee.

The franchisee must be the manager. If there is a corporation or LLC (limited liability company), the majority owner or majority owner must be designated as the manager.

Franchise Cost:

  • Franchise Starter Fee – $ 5,000 Base Fee (based on territory population)
  • Equipment / Software and Hardware – $ 2,200 – $ 3,100
  • Broadband Internet Access with Email Account – $ 30 Monthly – $ 50 Monthly
  • Training Program Expenses – $ 700 – $ 1,700
  • 3 days 1st year additional training – $ 450 – $ 1,350
  • Insurance – $ 540 – $ 600
  • Additional Funds (3 months) – $ 3,000
  • Estimated Initial Investment – $ 11,920 – $ 14,740
  • Conditional Term Extension – $ 250
  • Franchise Transfer Fee – $ 750
  • Replacement Fee – $ 500 for Operations Manual

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Source by Thomas E White