Pool Scouts Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$102,805 - $333,150
Franchise Fee
$25,000
Total US Locations
81
Business Summary
Pool Scouts operates a mobile service business that provides cleaning and maintenance for swimming pools and spas. These services include opening pools, recurring maintenance to ensure proper water chemistry and debris removal, and closing pools. While minor repairs requiring low technical expertise are part of the service, more complex repair services may be offered once franchisees obtain appropriate technical training and certification or by hiring qualified professionals. Pool Scouts serves both residential and commercial customers within an exclusive geographic territory.
Corporate History
Pool Scouts Franchising, LLC was established as a Virginia Limited Liability Company on December 10, 2015, with its main office in Virginia Beach, Virginia. The company was founded to offer franchises and operate businesses specializing in cleaning and maintaining swimming pools and spas. While Pool Scouts Franchising, LLC did not initially operate a business similar to the franchised business, its affiliate, Pool Scouts Local Operations, LLC, has been operating such a business since January 8, 2016. Pool Scouts began offering franchises on February 23, 2016.
Financial Overview
Investment Range
$102,805 - $333,150
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$50,000
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$1,800
Equipment Costs (High)
$6,600
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion, Going concern qualification
Financial Health Notes
The franchisor's financial condition, as reflected in its financial statements, raises questions about Pool Scouts' ability to provide services and support to its franchisees. The independent auditor noted a 'Going Concern' qualification for Pool Scouts' parent company, Buzz Franchise Brands, LLC. This means there is substantial doubt about the parent company's ability to continue as a going concern due to incurring a net loss from operations, negative cash flows from operations, and a working capital deficit of approximately $3,924,000 for the year ended December 31, 2023.
Financing Details
Pool Scouts or its affiliates may, at their discretion, offer financing for a portion of the initial investment or operating capital. The amount of financing depends on factors like fund availability, franchisee creditworthiness, and market conditions, and may cover up to half of the initial franchise fee. The annual interest rate is typically 12% but can vary based on credit. Repayment terms are usually 1-3 years with monthly payments, though other terms like daily credit card receipts may be required. Franchisees (or principals of entities) must personally guarantee the debt, and Pool Scouts may require a security interest in the business's assets. Franchisees can prepay the financed amount without penalty. Pool Scouts may defer principal payments on its loans until SBA loans are repaid, with all principal due within 24 months after SBA loan repayment. Pool Scouts is not obligated to provide financing. Currently, no lease arrangements are offered, but they may be available in the future through affiliates or third parties. Pool Scouts does not provide financing in California.
Performance Metrics
Total US Locations
81
Franchised Units
79
Corporate Units
2
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
Pool Scouts has no litigation that is required to be disclosed. There are no lawsuits, arbitration proceedings, or other legal disputes involving the franchisor or its management that need to be reported.
Bankruptcy History
Dave Warn, who is Pool Scouts' Vice President of Franchise Development, along with Karen Denise Warn, filed for personal Chapter 13 bankruptcy in April 2014. The plan was confirmed in August 2014, and a standard discharge of debts was entered in January 2020, concluding the bankruptcy case. No other bankruptcy information for Pool Scouts or its other key personnel is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Pool Scouts franchise, franchisees must provide written notice 6 to 9 months before the current term ends. They must update their business to meet current System standards, including possibly acquiring new vehicles and equipment, and renovating signs and décor. Franchisees must not be in default of any agreements, must have paid all financial obligations on time, and must sign Pool Scouts' then-current franchise agreement, which may have different terms. They also need to sign a general release of claims against Pool Scouts and its affiliates, meet current qualification and training requirements at their own expense, and pay a $5,000 renewal fee.
Training & Support Program
Franchisor Assistance
Before opening, Pool Scouts provides franchisees with a 4 to 6-day Operations Training program, offered virtually and in Virginia Beach, Virginia, covering critical aspects of running the business. The franchisor loans a copy of its Operations Manual. Pool Scouts also offers guidance on selecting and setting up approved vehicles and advises on commercial locations if needed. Additionally, Pool Scouts provides lists of approved suppliers and specifications for items like decals, tools, equipment, cleaning supplies, products, and software systems. Ongoing support includes periodic advice and written materials on pool and spa cleaning business techniques, management, marketing, and products. Pool Scouts conducts inspections and evaluations of services at no charge, provides approved supplier names for equipment and supplies, and offers telephone and internet support during normal business hours. Franchisees may be required to attend 1 to 2-day advanced training and national/regional meetings. Pool Scouts and/or its designee operate a call center for customer service requests, which franchisees must use. The franchisor also provides planning assistance for local marketing and may offer group purchasing programs for discounts.
Initial Training Hours
60
Training Location
Virginia Beach, VA and virtually
Ongoing Support
After opening, Pool Scouts provides franchisees with ongoing advice and written materials about the swimming pool and spa cleaning business, including managing operations, promotions, and customer relations. The franchisor conducts inspections and service evaluations, and provides updated lists of approved suppliers for equipment and cleaning products. Franchisees receive telephone and internet support for operational questions during normal business hours. Pool Scouts may require attendance at 1-2 day advanced training sessions and annual conventions to improve business skills and learn about new products or services. A call center handles customer service requests, assigning them to franchisees in the appropriate territory. Pool Scouts may also offer opportunities to participate in group purchasing programs for discounts and provides assistance with marketing plans and materials.
Franchise Requirements
Ideal Candidate Profile
Pool Scouts seeks "qualified persons" and "well-qualified and experienced buyers" particularly for multi-unit development. Franchisees are required to dedicate their best efforts to successfully operate and grow their business, either under their direct supervision and control or through a franchisor-approved Designated Manager. While there is no specific background or prior experience required for a Designated Manager, the franchisee owner is expected to actively supervise or control the business. Franchisees are also expected to hire licensed and certified staff as required by local jurisdictions, especially for pool repair services and chemical handling.
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Exclusive
Territory Size Requirements
Pool Scouts defines its franchise territories by zip codes, which contain up to 10,000 estimated "Targeted Households." A Targeted Household is a single-family detached home with a pool or spa and an estimated annual gross income of at least $100,000. This household count is an estimate based on third-party data, so the actual number may vary. The specific geographic area and number of Targeted Households for a franchisee's territory are outlined in Schedule A of the Franchise Agreement. Franchisees can, with Pool Scouts' permission, add immediately adjacent unoccupied zip codes to their territory at a cost of $1.00 per Targeted Household in those added zip codes. All Targeted Households within the territory must be included in the mandatory Mailer Program.
Staffing Notes
Pool Scouts franchisees are responsible for hiring and managing their staff, including compensation, payroll taxes, scheduling, and day-to-day supervision. They must ensure employees providing services are sufficiently licensed, certified, and undergo required screenings as specified in the Operations Manual. In some jurisdictions, the franchisee or an employee must be a certified pool technician or operator. All employees involved in chemical application must be trained and tested according to local regulations. Franchisees are expected to ensure employees maintain a neat appearance and good customer relations, adhering to System standards. Pool Scouts emphasizes that it does not control or supervise franchisee employees, and its recommendations are advisory. Franchisees must clearly communicate to their employees that they are the sole employer.