THE PICKLR logo

THE PICKLR Franchise

Audited Financials
RecreationEst. 2023Kaysville, UT
www.thepicklr.com

Risk Score

Pending analysis

Investment Range

$1,242,900 - $2,094,300

Franchise Fee

$30,000

Total US Locations

24

Business Summary

The Picklr Franchise operates premier indoor pickleball facilities and event centers. These facilities offer court reservations, leagues, tournaments, clinics, and private or corporate events. They also feature a pro shop for merchandise and sell simple pre-packaged food and beverages, with some locations offering alcoholic beverages. The business model is membership-based, aiming to provide exceptional value and support to its members in their pickleball activities.

Corporate History

The Picklr Franchise Inc. was formed as a Utah corporation on February 28, 2023, and began offering franchises in March 2023. The Picklr Franchise Inc. does not directly operate any Picklr franchises, but its affiliate, Picklr Clubs, Inc., operates several Picklr centers. The franchisor's parent company is Picklr, Inc., a Delaware corporation. Before Picklr, Inc. existed, there were two predecessor companies, The Picklr, LLC and The Picklr 2, LLC, both Utah limited liability companies. These predecessors merged into Picklr, Inc. in January 2023.

Financial Overview

Investment Range

$1,242,900 - $2,094,300

Franchise Fee (Low)

$30,000

Franchise Fee (High)

$60,000

Royalty %

7%

Marketing %

2%

Equipment Costs (Low)

$1,080,000

Equipment Costs (High)

$1,800,000

Working Capital

$62,500

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

The Picklr's financial statements show significant net losses, with $(7,336,960) in 2024 and $(2,096,814) in 2023, resulting in an accumulated deficit of $(11,383,774) by the end of 2024. The total liabilities of The Picklr also significantly exceed its assets. A special risk disclosure in the FDD specifically states that the franchisor's financial condition, as reflected in these statements, calls into question its financial ability to provide services and support to franchisees. The company intends to address its deficit through future marketing fees collected from franchisees.

Financing Details

The Picklr does not offer any direct or indirect financing to its franchisees. This means franchisees will need to secure their own funding from third-party lenders. The Picklr also does not guarantee any notes, leases, or other obligations for its franchisees.

Performance Metrics

Total US Locations

24

Franchised Units

22

Corporate Units

2

Avg Square Footage

26,500

Franchising Since

2023

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew their franchise agreement, The Picklr franchisees must fulfill several conditions. They must sign The Picklr's then-current franchise agreement for the successor term, which may have different terms and conditions from their original agreement. Franchisees also need to be current on all payments owed to The Picklr and any other financial obligations material to their business. Additionally, they must sign a required legal release and pay a successor franchise fee of $10,000. Franchisees are also expected to upgrade their Picklr facility and computer system to meet The Picklr's then-current standards and provide proof of current licenses, insurance, and permits.

Training & Support Program

Franchisor Assistance

The Picklr provides comprehensive assistance to its franchisees both before and after opening. Before opening, The Picklr helps with designating a search area for the facility, provides specifications for equipment and supplies, and offers site selection assistance through regional brokers. Franchisees receive an initial training program for up to two people, along with The Picklr's confidential Operations Manual. The Picklr also provides a list of initial inventory and grants access to a membership sales manager for presale memberships and marketing. A 'go team' offers on-site support for one week before and one week after the grand opening. After opening, The Picklr offers continuing support through a regional manager available by phone or video call for operational guidance and sales strategies. The Picklr may also hold periodic or mandatory annual meetings, workshops, and seminars, for which franchisees might pay a conference fee. Franchisees are informed of mandatory operating standards and procedures, and The Picklr conducts research on new products, services, and training methods. National marketing and advertising programs are managed through the National Marketing Fund, and marketing materials are provided. Additional on-site assistance is available at The Picklr's discretion, potentially for a fee, and The Picklr may establish and manage local advertising cooperatives.

Initial Training Hours

58

Training Location

Kaysville, UT

Ongoing Support

After opening, The Picklr franchisees receive ongoing support through various channels. A regional manager is available by telephone or video call during business hours to discuss operational experiences and sales support. The Picklr may organize periodic meetings, workshops, and seminars on topics like sales techniques, new product and service developments, and performance standards. There will also be a mandatory annual conference that franchisees are required to attend, with associated fees and travel expenses. The Picklr continually informs franchisees of mandatory specifications, standards, and operating procedures for their facilities. They also research new products, services, and business methods, sharing this information with franchisees. The Picklr maintains and uses the National Marketing Fund to develop promotional and advertising programs. Marketing and advertising materials, including graphics packages, are provided. On-site assistance may be offered at The Picklr's discretion, possibly for an additional fee. The Picklr may also establish and manage local advertising cooperatives.

Franchise Requirements

Ideal Candidate Profile

The Picklr seeks individuals who are capable of providing direct, on-site supervision for their franchise location. If the franchisee is not actively involved in day-to-day operations, they may be required to hire a business manager who will provide this supervision and attend initial training. All franchisees or their designated business managers must possess sufficient computer skills to operate the required computer systems, utilize software, and access email and the internet.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

Yes

Operational Details

Location Type

Retail

Owner Participation

Supervisory

Territory Type

Protected

Territory Size Requirements

For a single unit, The Picklr grants a protected territory defined by zip codes. The size of this territory varies based on factors like population density and demographics. However, franchisees should be aware that they do not receive an exclusive territory and The Picklr reserves the right to allow other franchisees or company-owned outlets to operate and compete within the broader market, as well as sell products and services through other distribution channels. For multi-unit developers, an exclusive development territory is granted initially, but once the development schedule is completed, each individual Picklr franchise within that area will revert to a territory limited to the zip codes of its specific location.

Staffing Notes

The Picklr franchisees are responsible for maintaining a competent, conscientious, and trained staff. All employees must adhere to The Picklr's appearance standards, wear appropriate attire, and undergo background checks. Franchisees are solely responsible for all employment decisions, including hiring, firing, training, and compliance with labor laws. All instructors operating within The Picklr franchise must hold a current pickleball coaching certification from an approved provider and will be required to complete continuing education and recertification every two years. Franchisees or their designated business managers must provide direct, on-site supervision of the facility.