Franchising Since: 2005
Headquarters: Columbia, Maryland
Estimated Number of Units: 390
Franchise Description: The franchisor is ASP Franchising SPE LLC. The franchisor’s direct parent company is AB Assetco LLC. Authority Brands, Inc. is an indirect parent. The franchised business provides swimming pool cleaning, swimming pool maintenance, and swimming pool renovation services, as well as other services and products related to the swimming pool industry.
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Territory Granted: Franchisees will have a protected territory during the term of your Franchise Agreement, provided they are in full compliance with the terms of the Franchise Agreement, including certain minimum performance requirements and their obligation to primarily service customers in the territory. “Protected” means that the franchisor will not operate a business under the marks and the system in the territory or authorize others to operate franchised businesses within the territory, except as described in the FDD. A typical territory will consist of at least one unit and will be defined using postal zip codes present at the time the territory is established with population totals included in the description as well. A unit is based on the total number of residential pools in the territory and is generally defined as: (a) 10,000 residential pools in California; (b) 6,000 residential pools in Texas, Florida, Arizona, and Nevada; and (c) 3,000 residential pools in all other states.
Obligations and Restrictions: Franchisees must designate an individual who will be responsible for the day-to-day operational performance of the franchised business and who has the authority to bind the franchisee in all decisions regarding the franchised business (the “key person”). The key person must personally manage and operate the franchised business as a primary occupation. The key person must complete the training program. Spouses of franchisees will be required to sign a Spouse Acknowledgement, by which the spouse acknowledges that the franchisor is relying on all assets of the guarantor, including jointly owned marital property, in accepting the guarantor’s obligations. Franchisees are required to offer and sell all products and services that the franchisor designates as required items for ASP businesses. Franchisees may also offer for sale any optional products and services that the franchisor has approved for sale in the franchised business. Franchisees may not offer products or services through any channel other than those the franchisor has expressly approved.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees can renew the franchise for one additional term of 10 years if they meet certain conditions.
Financial Assistance: In its discretion, the franchisor may permit franchisees to finance up to 75% of the franchise fee and any applicable additional pool fee rather than paying the entire amount in a lump sum when they sign the Franchise Agreement. However, the franchisor does not offer financing for any transaction involving brokers or any other third-party referral sources. Except as described, the franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or other obligation.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $40,000 | $90,000 |
| Leasehold Improvements | $0 | $0 |
| Vehicle Wrap | $2,800 | $4,200 |
| Business Outfitting Fee | $3,621 | $3,621 |
| Operations Outfitting Fee | $3,600 | $11,350 |
| Truck Outfitting Fee | $6,365 | $6,365 |
| Vehicle | $0 | $3,402 |
| Office Equipment and Supplies | $90 | $5,310 |
| Initial Advertising Fee | $5,820 | $58,200 |
| Insurance | $4,387 | $6,393 |
| Professional Fees | $1,070 | $2,140 |
| Initial Training Expense | $642 | $2,140 |
| Licenses and/or Bonds | $0 | $1,000 |
| Additional Funds | $16,000 | $16,000 |
| ESTIMATED TOTAL (does not include real estate costs) | $84,395 | $210,121 |
Other Fees
| Type of Fee | Amount |
| Royalty Fee | Franchisees will pay the applicable royalty fee percentage (from 7% down to 5%) based on total gross revenue in a calendar year. The applicable royalty percentage will revert to 7% of gross revenue at the start of each calendar year. |
| Brand Fund Contribution | Currently, 1% of gross revenue. |
| Brand Fund Materials | The franchisor’s costs. |
| Local Marketing and/or Cooperative | The greater of 3% of gross revenue or $30,000 per calendar year. |
| Key Account Programs | Will vary under circumstances and may be determined based on number of participating franchisees or other factors. |
| Technology Fees | Franchisees will pay ongoing fees for various technology services and apps. The specific services and apps and the applicable fees will vary over time. |
| Additional Opening Support Fee | A reasonable fee, up to $500 per day, plus the reasonable travel, meal, and lodging expenses of the franchisor’s opening support personnel. |
| Training Fees – Pre-Opening | None, unless franchisees request and the franchisor agree to accept extra trainees at $300 per day per extra trainee plus the trainers’ reasonable costs and expenses, when applicable. |
| Training Fees – Remedial and Optional Training | $500 per trainee. |
| Annual Conference | Determined by us based on the franchisor’s anticipated costs of the conference. |
| Non-Attendance Fee | $500 for the first missed conference and then $2,000 for any conference missed consecutively thereafter. |
| Call Center Fee | $26 per month, plus $1.17/minute for inbound calls to the call center. |
| Service Deficiency Fee | The franchisor’s costs. |
| Renewal Fee | $5,000 |
| Transfer Fee | Generally, $10,000. |
| Change of Ownership Fee | Currently, (a) the greater of $500 or the franchisor’s external legal and administrative costs; plus (b) applicable training fees for the individuals the franchisor requires to attend training. |
| Procurement of Insurance | Cost of insurance, plus reasonable fee of up to 25% of total insurance premium cost. |
| Vendor Review | The franchisor’s reasonable costs, plus the reasonable travel, meal and lodging expenses of the vendor review personnel. |
| Management Fee | Up to $500 per day, plus the franchisor’s costs and overhead. |
| Step In Fee | Up to $500 per day, plus the franchisor’s costs and overhead. |
| Interest | 12% per annum or the maximum rate permitted by applicable law, whichever is less. |
| Late Fee | $100 for second occurrence of payment more than 30 days past due; $200 for third occurrence; $300 for each subsequent occurrence. |
| Insufficient Funds Fee | $50 or the amount the bank charges the franchisor due to the insufficient funds, whichever is greater. |
| Indemnity for Tax Withholding | Amount of any penalties, interest, and expenses the franchisor incurs. |
| Audit Costs | The franchisor’s costs and expenses of conducting audit, including travel and lodging. |
| Enforcement Costs | The franchisor’s actual costs and expenses. |
| Defense Costs | The franchisor’s actual costs and expenses. |
| Indemnification | The franchisor’s actual costs and expenses. |
| Liquidated Damages | The greater of: (i) two years of royalty fees (calculated as average royalty fees per payment period in the year preceding the termination of the Franchise Agreement, multiplied by the number of payment periods occurring in a two-year period); or (ii) $100,000. |
| De-identification Fee | The franchisor’s costs. |
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