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ASP - America's Swimming Pool Company Franchise ProfileHome Based Franchises > Home Repair Services |
What Are the Initial Investment Requirements for an ASP Franchise?
To become an ASP franchisee, you will need to prepare for an initial investment that ranges from $84,395 to $207,368. This includes a franchise fee of $40,000, along with other startup costs. It's essential to have a minimum cash requirement of $84,395 and a net worth of between $350,000 and $500,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared for the journey ahead.
What Are the Ongoing Fees Associated with an ASP Franchise?
As an ASP franchisee, you will be responsible for ongoing fees that include a royalty fee of 7% of your gross sales and a marketing fee of 3%. These fees are designed to help support the brand's marketing efforts and ensure that you receive ongoing operational support. It's important to factor these costs into your financial planning to maintain profitability as your business grows.
What Is the Average Revenue Potential for ASP Franchisees?
ASP franchisees can expect significant revenue potential, with an average annual revenue per unit reported at $829,221. The median annual revenue stands at $491,653, while individual unit performance can vary, with the lowest annual revenue at $63,976 and the highest reaching $3,425,087. This wide range highlights the importance of location, management, and operational efficiency in achieving success within the franchise system.
How Quickly Can You Expect to Break Even with an ASP Franchise?
Franchisees can anticipate a breakeven time of approximately 12 months, which is relatively quick in the franchise industry. Additionally, the investment payback period is around 18 months, allowing franchisees to recoup their initial investment within a reasonable timeframe. These timelines can be attractive for those looking to enter the franchise world and achieve financial stability swiftly.
ASP - America's Swimming Pool Company 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:
ASP - America's Swimming Pool Company 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 | 348 | 364 | 375 |
| Net Change YoY | 16 | 11 | |
| Franchised Units | 348 | 364 | 375 |
| Net Change YoY | 16 | 11 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The initial investment to open an America's Swimming Pool Company franchise ranges from $84,395 to $207,368. This includes a franchise fee of $40,000, ensuring that franchisees receive comprehensive support and training as they embark on their business journey. Aspiring owners should be prepared for additional costs that may arise during the setup phase.
Financial Performance
Franchisees can expect substantial revenue potential, with average annual revenue per unit reported at $829,221 and median annual revenue at $491,653. The lowest annual revenue recorded is $63,976, while the highest reaches an impressive $3,425,087. This range highlights the variability in performance, depending on factors like location and management efficiency.
Royalty and Marketing Fees
America's Swimming Pool Company charges a royalty fee of 7% on gross sales, complemented by a 3% marketing fee. These fees contribute to the ongoing support and marketing efforts provided by the franchisor, helping franchisees to build brand recognition and drive customer engagement in their local markets.
Breakeven and Payback Period
Franchisees can anticipate a breakeven period of approximately 12 months, which is relatively swift in the franchise industry. The investment payback period is estimated at 18 months, allowing franchisees to recover their initial investments and begin generating profits in a timely manner.
Franchise Growth
The America's Swimming Pool Company has shown steady growth in the number of franchised units, increasing from 348 in 2021 to 375 in 2023. This upward trend indicates a strong demand for their services and a robust franchise model that supports expansion and sustainability across various markets.
Operational Expenses
On average, franchisees incur operating expenses of about $910,379 annually. Key expenses include payroll ($516,632), office expenses ($109,771), and insurance ($61,805). Understanding these costs is crucial for franchisees to effectively manage their operations and maximize profitability in the competitive swimming pool service industry.
Frequently Asked Questions
The initial investment for an America's Swimming Pool Company franchise ranges from $84,395 to $207,368, which includes the franchise fee of $40,000.