Ace Pickleball Club logo

Ace Pickleball Club Franchise

Audited Financials
RecreationEst. 2023Roswell, GA
www.acepickleballclub.com

Risk Score

Pending analysis

Investment Range

$817,750 - $2,404,850

Franchise Fee

$60,000

Total US Locations

11

Business Summary

Ace Pickleball Club operates businesses that provide pickleball courts and related activities such as open play, memberships, tournaments, and special events. Each club includes a retail pro-shop selling pickleball equipment and apparel, and a cafe offering grab-and-go food and beverages. The clubs are typically large facilities, ranging from 25,000 to 40,000 square feet, featuring 8 to 16 pickleball courts.

Corporate History

Ace Pickleball Club Franchise, LLC was formed in Nevada on January 20, 2023, and began offering franchises in February 2023. Its parent company, Ace Pickleball Club, LLC, was formed in August 2022 and owns the intellectual property for the brand. Ace Pickleball Club has operated outlets similar to the franchised business through its affiliates since May 2023.

Financial Overview

Investment Range

$817,750 - $2,404,850

Franchise Fee (Low)

$60,000

Franchise Fee (High)

$60,000

Royalty %

7%

Marketing %

1%

Equipment Costs (Low)

$375,000

Equipment Costs (High)

$650,000

Working Capital

$207,500

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Ace Pickleball Club has experienced significant losses and negative cash flows from its operations, resulting in an accumulated deficit of $4,306,699 as of December 31, 2024. The franchisor is incurring expenses to grow its franchisee base and expand into new markets. The FDD itself includes a risk factor stating that the franchisor's financial condition, as reflected in its financial statements, calls into question its ability to provide services and support. However, management believes its parent company intends to provide any necessary financial assistance to ensure the franchisor can meet its funding requirements for at least one year.

Financing Details

Ace Pickleball Club does not offer any direct or indirect financing to its franchisees. This means the franchisor will not provide loans or guarantee any notes, leases, or other financial obligations on behalf of the franchisee.

Performance Metrics

Total US Locations

11

Franchised Units

8

Corporate Units

3

Avg Square Footage

32,500

Franchising Since

2023

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their Ace Pickleball Club franchise, franchisees must notify the franchisor in writing between 6 and 18 months before their initial agreement ends. They must not be in default under their current agreement and must sign the then-current franchise agreement, which may have different terms. Franchisees are also required to remodel and upgrade their club, including equipment and improvements, to meet current brand standards, with these upgrades not exceeding $100,000. Additionally, they must pay a renewal fee equal to 25% of the then-current initial franchise fee and sign a general release of claims against Ace Pickleball Club.

Training & Support Program

Franchisor Assistance

Ace Pickleball Club provides franchisees with pre-opening assistance that includes granting the right to use its intellectual property and system, designating a territory, offering site selection criteria, and approving the club's location. The franchisor will also provide space plans, conduct a mandatory 1-2 day onboarding program in Roswell, GA, and offer an initial training program for the Operating Principal Owner and Club managers. After opening, Ace Pickleball Club administers the advertising fund, provides at least three days of on-site opening assistance, and offers additional guidance, assistance, and refresher training programs upon request. The franchisor also conducts periodic inspections and audits of the clubs and provides updates to the operations manual.

Initial Training Hours

73

Training Location

Roswell, Georgia

Ongoing Support

After opening, Ace Pickleball Club provides ongoing support services to its franchisees. This includes administering the advertising fund and offering additional guidance and assistance, as well as refresher training programs, which may incur a fee. The franchisor conducts periodic inspections of club premises and audits business operations. Franchisees also receive ongoing updates to the operations manual.

Franchise Requirements

Ideal Candidate Profile

Ace Pickleball Club seeks individuals who are committed to the active management and operation of their club. The franchisee's Operating Principal Owner must be an individual approved by the franchisor, authorized to make operational decisions, and must complete the training program. This individual is expected to diligently perform obligations and continuously exert best efforts to promote the franchise. While the franchisee does not have to personally supervise the club full-time, a full-time general manager, who can be the Operating Principal Owner or another approved individual, must be in place and must complete the required training.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Retail

Owner Participation

Absentee Allowed

Territory Type

Limited

Territory Size Requirements

Ace Pickleball Club territories are typically defined by contiguous zip codes, county, or other municipal or natural boundaries. Each protected territory usually encompasses a population of at least 100,000 people. The franchisor reserves the right to modify a protected territory as long as it still includes at least 100,000 people.

Staffing Notes

Ace Pickleball Club franchisees are solely responsible for all employment decisions and functions, including hiring, firing, training, and supervision of staff. Franchisees must open their club with a minimum of two trained and certified managers who have successfully completed the initial training program. Failure to have these managers in place will prevent the club from opening. Supervisory personnel, including the designated manager, are required to sign confidentiality and non-compete agreements.