Risk Score
Pending analysis
Investment Range
$3,179,200 - $7,528,700
Franchise Fee
$55,000
Total US Locations
1
Business Summary
PKL operates eatertainment facilities open to the public that feature pickleball courts, pickleball league events, shuffleboard, and cornhole. These facilities also include multiple bar and lounge areas that serve specialty cocktails, craft beers, wine, and sophisticated dining options.
Corporate History
Play PKL Franchising LLC was formed on May 11, 2023, and began offering franchises on October 30, 2023. Its parent company, Play PKL, LLC, was formed in July 2021 and owns the intellectual property licensed to the franchisor. An affiliate, PKL Boston, LLC, has operated one PKL facility in Boston, Massachusetts, since June 2021. Another affiliate, PKL Merchandising LLC, was formed in August 2023 and acts as the exclusive supplier for certain retail items for PKL facilities.
Financial Overview
Investment Range
$3,179,200 - $7,528,700
Franchise Fee (Low)
$55,000
Franchise Fee (High)
$55,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$2,500,000
Equipment Costs (High)
$6,000,000
Working Capital
$300,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD states that PKL's financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. The balance sheet for Play PKL Franchising, LLC as of December 31, 2023, shows cash and cash equivalents of $10,000 and total members' equity of $10,000, with no revenue or operating expenses for the period ended December 31, 2023.
Financing Details
PKL does not offer any direct or indirect financing to franchisees. PKL also does not guarantee any franchisee's notes, leases, or obligations.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Avg Square Footage
20,000
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
PKL has no litigation history to report.
Bankruptcy History
PKL has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, PKL franchisees must have fully complied with the Franchise Agreement's provisions, made necessary capital expenditures to maintain system uniformity, and satisfied all monetary obligations owed to PKL or its affiliates. They must not be in default of any agreement with PKL or its affiliates or suppliers. Franchisees need to provide written notice of their intent to renew between 12 and 6 months before the current agreement ends. They must also sign PKL's then-current franchise agreement (which may have different terms), meet current franchisee qualifications, agree to comply with any new training requirements, sign a general legal release, and pay a renewal fee equal to 50% of the then-current Initial Franchise Fee.
Training & Support Program
Franchisor Assistance
PKL provides franchisees with pre-opening assistance, including an initial training program, guidance on ordering equipment, signage, and inventory, and general opening guidance. PKL will also provide a copy of its confidential operations manual and assistance with site selection and approval, including prototypical plans and design specifications. Franchisees will receive information on approved products and suppliers, and PKL will review their lease agreements. PKL may also assist in establishing prices for products and services. For ongoing support, PKL offers periodic assistance with marketing, management, and operations, including help with key suppliers. Franchisees can expect additional and ongoing training, review and approval of marketing materials, updates to the operations manual, and administration of the Brand Fund. PKL representatives may conduct periodic, announced or unannounced, visits to monitor compliance and conduct quality assurance audits. PKL also holds periodic mandatory conferences covering sales, training, and operational procedures.
Initial Training Hours
52
Training Location
Corporate headquarters in Boston, Massachusetts, or another designated location, or virtual.
Ongoing Support
PKL provides ongoing support to franchisees through periodic assistance in marketing, management, and operations, including help with key suppliers. PKL may also offer the services of field representatives who can visit the franchise and provide advice (for a per diem rate plus expenses). Additional and ongoing training courses are offered as needed, also for a per diem rate plus expenses. PKL reviews and approves all marketing and promotional materials, provides updates to the operations manual, and administers the Brand Fund. Representatives conduct periodic, announced or unannounced, visits to ensure compliance and conduct quality assurance audits. Franchisees are also required to attend mandatory periodic conferences to discuss various aspects of business operations, for which PKL may charge a fee, and franchisees are responsible for their travel and living expenses.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
limited
Territory Size Requirements
PKL designates each franchisee's territory, called the Designated Territory, based on a typical 3-mile drivable distance around the approved location. However, PKL may grant smaller territories based on the demographics of the area.
Staffing Notes
PKL requires franchisees that are entities (corporations, partnerships, or LLCs) to designate an Operating Principal. This individual must own at least 10% of the franchisee's voting and ownership interests and supervise the franchise's operation. If the Operating Principal does not supervise the business full-time and daily, then the franchisee must hire a full-time Manager with qualifications acceptable to PKL to handle daily operations. Both the Operating Principal and/or the Manager must dedicate full-time and best efforts to the business. Managers must be approved by PKL. PKL also requires franchisees and their management staff to successfully complete its training program before opening.