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American Poolplayers Association Franchise ProfileSports Franchises > Sports Leagues |
What is the Initial Investment for an American Poolplayers Association Franchise?
To open an American Poolplayers Association franchise, the initial investment ranges from $21,936.22 to $30,520. This includes a franchise fee of $10,000, along with various startup costs that may arise. Prospective franchisees should also prepare for ongoing expenses, including a 10% royalty fee and a 5% marketing fee based on their revenue. It’s essential to have a minimum cash requirement of $21,936.22 and a net worth of $100,000 to $200,000 to qualify for franchise ownership.
What are the Financial Performance Metrics for an American Poolplayers Association Franchise?
The average annual revenue per unit for an American Poolplayers Association franchise is approximately $69,872, with a median annual revenue of $50,000. Revenue can vary significantly, with the lowest recorded annual revenue at $15,000 and the highest at $1,202,000. Franchisees can expect to break even within 12 months and achieve a full investment payback in about 24 months, making it an attractive option for aspiring business owners.
What are the Annual Operating Expenses for an American Poolplayers Association Franchise?
Annual operating expenses for an American Poolplayers Association franchise total around $13,840,372. Major expense categories include salaries and benefits ($6,509,767), tournament expenses ($4,031,303), and advertising costs ($395,161). Understanding these expenses is crucial for franchisees to manage their financial expectations and operational strategies effectively.
How Many Franchised Units Does the American Poolplayers Association Have?
As of 2023, the American Poolplayers Association has a total of 8 units, with 4 being franchised and 4 corporate-owned. This reflects a slight decrease from previous years, where both 2021 and 2022 had 12 total units. The growth and stability of the franchise system can be an important consideration for potential franchisees evaluating the brand's market presence and support structure.
American Poolplayers Association Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
American Poolplayers Association Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 12 | 12 | 8 |
| Net Change YoY | 0 | -4 | |
| Franchised Units | 6 | 6 | 4 |
| Net Change YoY | 0 | -2 | |
| Corporate Units | 6 | 6 | 4 |
| Net Change YoY | 0 | -2 |
Investment Overview
The American Poolplayers Association (APA) franchise offers a low initial investment range of $21,936.22 to $30,520. This includes a franchise fee of $10,000, making it accessible for aspiring entrepreneurs. The required cash on hand aligns with the initial investment, while a net worth requirement of $100,000 to $200,000 ensures that franchisees have the financial stability to support their business.
Revenue Potential
The average annual revenue per APA franchise unit is approximately $69,872, with a median of $50,000. Revenue can vary significantly, with the lowest reported annual revenue at $15,000 and the highest reaching $1,202,000. This wide range highlights the potential for profitability, depending on location and operational effectiveness.
Fees and Royalties
Franchisees are subject to a royalty fee of 10% on gross sales, along with a marketing fee of 5%. These fees contribute to ongoing support and brand promotion, which are essential for maintaining competitive advantage and driving customer engagement in the pool and billiards market.
Breakeven and Payback Period
The breakeven time for an APA franchise is estimated at 12 months, indicating a relatively quick return on investment. Franchisees can expect to recoup their initial investment within approximately 24 months, making it an attractive option for those looking for a timely payoff.
Franchise Growth
The APA has maintained a steady presence in the market, with 12 total units in 2021 and 2022, comprising both franchised and corporate locations. However, the number of franchised units decreased to 4 in 2023, reflecting potential shifts in market dynamics or strategic adjustments within the franchise system.
Operational Expenses
Average operating expenses for APA franchises total around $13,840,372 annually. Key expenses include salaries and benefits at $6,509,767, tournament expenses at $4,031,303, and advertising at $395,161. Understanding these costs is crucial for franchisees to manage their budget effectively and optimize profitability.
Frequently Asked Questions
The initial investment for an American Poolplayers Association franchise ranges from approximately $21,936 to $30,520, which includes a franchise fee of $10,000.