Pop-A-Lock Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$169,566 - $227,611
Franchise Fee
$75,000
Total US Locations
404
Business Summary
Pop-A-Lock franchisees offer a range of locksmith and security services for commercial buildings, residential homes, and automotive needs. This includes services like key origination and duplication, high-security lock installation and repair, general lock servicing, electronic access systems, CCTV installation, and safe sales. Pop-A-Lock also provides car door unlocking services and emergency roadside assistance. A key part of Pop-A-Lock's service is the PAL Saves Kids Program, where they provide free car door unlocking if a child or human life is in danger.
Corporate History
Pop-A-Lock's system originated on January 1, 1992, when Sig 5 Corporation opened its initial franchise in Lafayette, Louisiana. Franchising began under Sig 5 Corporation from May 1994 to March 1995, then exclusively under Sig 5 Franchise Development Corporation (Sig 5 D) from March 1995 to July 2000. In August 2000, The LSR Group acquired the Pop-A-Lock Franchise System. The current franchisor, SystemForward America, LLC, was incorporated on October 1, 2003, and merged with The LSR Group, continuing the Pop-A-Lock franchise offerings. Currently, SystemForward America, LLC also grants TemperaturePro and PlumbingPro franchises.
Financial Overview
Investment Range
$169,566 - $227,611
Franchise Fee (Low)
$75,000
Franchise Fee (High)
$100,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$21,506
Equipment Costs (High)
$38,511
Working Capital
$37,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Pop-A-Lock's financial statements reflect negative stockholders' equity, meaning that Pop-A-Lock's total liabilities exceed its total assets. For the fiscal year ending December 31, 2023, this negative equity amounted to $1,885,976, an increase from negative $910,512 in 2022. Pop-A-Lock has also reported substantial "other expenses" resulting from franchisee disputes, totaling $662,500 in 2023 and $127,200 in 2022. As of December 31, 2023, these disputes contributed to an "other liability" of $275,000. Despite these figures, the independent auditor's report does not raise substantial doubt about Pop-A-Lock's ability to continue as a going concern.
Financing Details
Pop-A-Lock does not offer any direct or indirect financing options to franchisees, nor does Pop-A-Lock guarantee any franchisee notes, leases, or obligations.
Performance Metrics
Total US Locations
404
Franchised Units
397
Corporate Units
7
Franchising Since
1994
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Pop-A-Lock has initiated one legal action during the fiscal year ending December 31, 2023. This action was filed against a franchisee, Blossom Industries LLC, in an American Arbitration Association proceeding on November 9, 2023. The lawsuit is to enforce restrictive covenants and collect royalties. There are no other pending or disclosed litigation actions.
Bankruptcy History
Pop-A-Lock has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Pop-A-Lock franchisees must be in good standing, meaning they have not defaulted on any material obligation that was not cured within 30 days of written notice. Franchisees must provide written notice of their intent to renew 18 months before the agreement expires. They will then be required to sign Pop-A-Lock's then-current franchise agreement, which may include terms and conditions that are materially different from their original agreement, such as increased fees (royalties not exceeding 10% and advertising fees not exceeding 2%) and a renewal term of at least 10 years. No renewal franchise fees are required. The new agreement must be executed and returned to Pop-A-Lock at least 30 days before the new term begins.
Training & Support Program
Franchisor Assistance
Pop-A-Lock provides comprehensive assistance to its franchisees, both before and after opening. Before opening, Pop-A-Lock designates the exclusive franchise area, sets the business commencement date, provides a Confidential Franchise Operations System Manual, and conducts mandatory initial training for franchisees and/or their designated managers covering management, operations, marketing, bookkeeping, safety, communications systems, and employer-employee relations. Pop-A-Lock also makes Pop-A-Lock Tool Kits available for lease, designates approved online directories, assists with display advertisement selection, and designates the required computer system with proprietary software. After opening, Pop-A-Lock provides updates to the Confidential Franchise Operations System Manual, offers operational and management counseling upon request, and advises on new developments in methods and tools. Pop-A-Lock also assists with local advertising and requires access to franchisee accounting and invoice data. Additionally, Pop-A-Lock provides advertising materials and services through the Pop-A-Lock Advertising Fund and may use these funds for regional or national media. Pop-A-Lock also offers technical training programs for eligible employees on car door unlocking techniques, roadside assistance, and basic locksmithing, for which a fee is charged per trainee, plus certification costs.
Initial Training Hours
66
Training Location
Lafayette, Louisiana
Ongoing Support
After opening, Pop-A-Lock provides ongoing support by updating its Confidential Franchise Operations System Manual with standard operational procedures, policies, rules, and regulations. Franchisees can request operational and management counseling, and Pop-A-Lock advises on new developments in management methods, service techniques, and tools. Pop-A-Lock also assists with local advertising and requires access to franchisee accounting and invoice data. Additionally, Pop-A-Lock provides advertising materials and services through the Pop-A-Lock Advertising Fund and may use these funds for regional or national media. Pop-A-Lock also offers ongoing technical training for eligible employees on car door unlocking techniques, roadside assistance, and basic locksmithing, for which a fee is charged per trainee, plus certification costs.
Franchise Requirements
Ideal Candidate Profile
Pop-A-Lock seeks franchisees who are either individual proprietors willing to directly supervise the business full-time, or business entities that can designate a full-time, direct manager. All owners of the franchisee entity must sign a personal guarantee for all obligations under the Franchise Agreement. Prospective franchisees and their designated managers must be able to complete the required training programs and commit to maintaining confidentiality and adhering to non-competition covenants.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Exclusive
Staff Count
3
Territory Size Requirements
Pop-A-Lock franchise territories are defined by geographic ZIP code areas, with population determined by the latest U.S. Census Bureau numbers.
Staffing Notes
Pop-A-Lock requires franchisees to maintain sufficient staffing to operate the business 24 hours a day, 365 days a year, with the number of employees adjusted to maximize revenues and profits. The franchisee or a designated full-time manager must directly supervise the business. Employees must be efficient, competent, sober, and courteous, with wages paid according to all applicable laws. All employees performing car door unlocking, roadside assistance, and locksmith services must complete appropriate technical training programs, either provided by Pop-A-Lock or an approved third party. Additionally, employees are required to wear uniforms that comply with Pop-A-Lock's specifications.