Risk Score
Pending analysis
Investment Range
$1,230,000 - $2,000,000
Franchise Fee
$25,000
Total US Locations
1
Business Summary
The Pickle Pad offers franchises for recreational facilities that feature pickleball courts, various social games, and a selection of merchandise, food, and beverages. The facilities operate under The Pickle Pad name and marks, providing a social and active entertainment experience.
Corporate History
TPP Franchising LLC, which operates under The Pickle Pad name, was organized in Delaware and began offering franchises for its recreational facilities in November 2023. The company commenced operations on August 9, 2023. It is wholly-owned by TPP Holding Company LLC, which is part of a larger group that includes Indoor Active Brands LLC and NRD Partners II, L.P. An affiliate, ATP Franchising, LLC, has been franchising 'Altitude Trampoline Park' facilities since December 2018.
Financial Overview
Investment Range
$1,230,000 - $2,000,000
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$45,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$560,000
Equipment Costs (High)
$910,000
Working Capital
$175,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Pickle Pad's auditors have issued an unqualified opinion on its financial statements, which means they present fairly in all material respects. However, the FDD explicitly highlights in its 'Special Risks' section that the franchisor's financial condition, as reflected in these statements, calls into question its financial ability to provide services and support to franchisees. As of December 31, 2024, The Pickle Pad had a member's deficit of -$563,387 and reported a net loss of -$1,185,900 for the year. The company relies on funding from affiliated companies, owing $433,559 to related parties in 2024. Additionally, The Pickle Pad noted that certain prior year financial statements were restated due to adjustments for organizational costs, intangible assets, and equity contributions related to these transactions.
Financing Details
The Pickle Pad does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for securing their own financing through banks or other lenders for all initial investment components and ongoing obligations. The franchisor also does not guarantee any loans, mortgages, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Avg Square Footage
25,000
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
The Pickle Pad has no litigation required to be disclosed in Item 3. There is no history of lawsuits, arbitrations, or other legal proceedings against the franchisor or its management that need to be reported.
Bankruptcy History
The Pickle Pad's Executive Chairman, Aziz Hashim, was an officer of Ruby Tuesday, Inc. and its affiliates when they voluntarily filed for Chapter 11 bankruptcy relief on October 7, 2020. The debtors owned and operated the 'Ruby Tuesday' brand of restaurants. Their reorganization plan became effective on February 24, 2021, and the Chapter 11 case was closed on December 10, 2021. No other bankruptcy information is required to be disclosed for The Pickle Pad.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, The Pickle Pad franchisees must provide written notice between 180 and 540 days before the agreement expires. They must have substantially complied with all terms of the Franchise Agreement and System Standards. Franchisees need to maintain possession of their Park and agree to remodel or expand it, or secure new approved premises, to meet current standards for new Parks. They are required to sign The Pickle Pad's then-current franchise agreement and other ancillary documents, which may have different terms, and their owners must sign general releases of claims against the franchisor. A renewal fee, equal to 25% of the then-current initial franchise fee, is also required. Additionally, The Pickle Pad must be offering franchises in the franchisee's geographic market area at the time of the renewal notice.
Training & Support Program
Franchisor Assistance
Before opening, The Pickle Pad provides franchisees with a Management Training Program for their key personnel, makes its Brand Standards Manual available, and reviews and approves the proposed site and lease for the Park. The franchisor also provides prototypical plans for the Park's layout and construction, reviews development plans, and offers 4 to 6 days of on-site advice and initial operations support before the opening date and 2 days after. During operation, The Pickle Pad continues to offer additional training (for a fee), advises on Park operations based on reports and inspections, allows the use of its Marks and copyrighted materials, administers the Brand Fund, and may set maximum or minimum prices for products and services. The franchisor also provides ongoing technology support and development, website and email hosting, and other technology services for a monthly fee.
Initial Training Hours
52
Training Location
Tallahassee, FL and Online
Ongoing Support
After opening, The Pickle Pad franchisees receive ongoing support including additional training that can be requested (for a fee) and advice on their Park's operation based on reports or inspections. The Brand Standards Manual remains available, and franchisees can continue to use the franchisor's Marks and copyrighted materials. The franchisor administers a Brand Fund for advertising and may set pricing guidelines for products and services. Franchisees and key personnel are also required to attend annual conferences, meetings, trade shows, ongoing education, or certification programs, which may incur a fee. A monthly Technology Fee is charged for support and development, website and email hosting, and other technology services.
Franchise Requirements
Ideal Candidate Profile
The Pickle Pad seeks qualified persons who are willing to undertake the investment and effort to own and operate a Park. Ideal candidates for an area development agreement must meet all of The Pickle Pad's then-current criteria for new franchisees, including having relevant business experience and financial resources. For those operating a single Park, The Pickle Pad requires the Principal Owner to supervise day-to-day operations full-time or designate an Approved Manager. The Principal Owner must be a natural person with at least a 51% ownership interest and voting power in the franchisee entity. Approved Managers and Key Personnel must satisfactorily complete The Pickle Pad's Management Training Program. The Pickle Pad also requires its franchisees to maintain sufficient liquidity to meet their obligations and adhere to high standards of honesty, integrity, fair dealing, and ethical conduct.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
The Pickle Pad defines its Protected Territories as a circular area with the Park at its center, typically ranging from 2.5 to 7.5 miles in radius. Alternatively, territories may be defined by political subdivisions such as cities or counties, specific streets and highways, or zip code boundaries.
Staffing Notes
The Pickle Pad requires that all Park personnel complete the TPP Academy certification program to ensure they have appropriate safety training and understand critical System Standards. The Park must always be under the direct on-site supervision of one or more persons who have successfully completed the Management Training Program. Franchisees are solely responsible for ensuring all employees are properly trained and managing employment functions in compliance with all applicable laws.