Cost of a pool franchise???

a guy just split an area in colorado i heard it was purchased for $600,000.00 he put 200 down...... somone else told me it was more.... Major coin... this is an established area though built up for years with many teams ....... I looked into an area in west WI a new area they wanted about 20,000.00 for it OH this is for APA
 
Last edited:
600k huh? wow, im blown away. I was thinking more along the 20k range for a decent sized area.
Anyone else have any experience with these?
 
Here's the info from Entrepreneur Magazine - http://www.entrepreneur.com/franchises/americanpoolplayersassociation/282088-1.html

The total investment is between $11k-$14k with ongoing royalty fees of 20% for a new territory.

$600k would be reasonable for an existing market if it was making a ton of money (>$150k per year), but I hope he has a non-compete clause with the seller. Without that, the seller might be able to start a new pool league and poach existing teams and locations that liked the league operator more than the APA.
 
Last edited:
Like I said this is an established area that has over 220 teams with a huge area to expand into...... the area I looked into 8 years ago was for 20,000.00
 
just think about it these leagues go 7 days a week....
for just 1 night if they had 10 teams it is $350.00 a week gross
1,400.00 a month
16,800.00 a year - the holidays

this is a GROSS figure without trophys,and payouts but if you figure 200+ teams you are making a ok living
 
you see quite a few married couples do this....... at first you need to drum up teams for the most part try to players into trying your league..... you must show them that the $ make sense....... most of the people I know do it full time. when you first start you have to support yourself from income other than your league dollars..... it takes awhile to build up your leagues to allow yourself to live off the income you are pulling in from just the league....... you have to understand .... you need to build your business from the ground up and then you can reep the benies
 
IRUNRAKS said:
just think about it these leagues go 7 days a week....
for just 1 night if they had 10 teams it is $350.00 a week gross
1,400.00 a month
16,800.00 a year - the holidays

this is a GROSS figure without trophys,and payouts but if you figure 200+ teams you are making a ok living
Click to expand...


I don't know where you got your figures, but you're WAY off. The average profit an APA league operator makes per team, per week, is $5-$7. The three separate league 'sessions' make up 42 weeks a year of regular league play. It is not easy to get a new league area up to 200+ teams, unless it is a major metropolitan area...and most of those are already gone. Plus, you'd still have to work your butt off to build 200 teams. I built my area from zero to 80 teams in about 6 weeks (and won Rookie League Operator of the Year for it), but I worked very hard at it. I went around and signed up EVERY bar player in thousands of square miles to do it.

Scott Lee
www.poolknowledge.com
 
you say my numbers are way off........ if you read you will see GROSS, if you dont know what that means, that is the $7 dollars the player hands in each time he plays...... at that point you start cutting it up...... and if you have to travel thousands of miles to drum up business well maybe you should have picked another area :)
 
Wow!!!!!!

The league I play in, Shreveport, La., must be one of the larger ones. Of course I don't know all the numbers, but my home pool hall has between 70 and 80 teams in it alone. Many other places in town have 30-40 teams playing. Makes me think that a league can be very profitable with a good operator, who takes care of the "players/customers", promotes the league, and encourages attendance.

Thanks for all the well said posts Scott Lee.
 
irunracks...Yes, I did see gross. It just seemed like you were intimating that getting a league area (ANY league area) up to 200 teams was easy. It is not.
As was mentioned, purchasing an established area goes for huge money, and rightly so...the L.O. worked hard to make it successful. The NET figure I mentioned is totally accurate, regardless of the league area, so even with 200 teams, the L.O. is still only putting about $50K net profit in his pocket...certainly not a great living, but doing something you love, and providing the poolplayers in your area with a nice league to play in (overall).
As far as my area, I chose to buy around where I lived (MT/ID). My league area was SW MT and SE ID, which was 300 miles long and 300 miles wide.
Still not much population in that area, and it was concentrated in five different towns, necessitating running the league by mail. My players were lucky to see me once a month, but they were still happy. There was NO sandbagging in any of my team markets. Sorry...I didn't mean to imply that you're "nuts"! :rolleyes: :D Sometimes the keyboard jumps out at me, before I really READ into what people type! My apologies...

Scott Lee
www.poolknowledge.com
 
The cost of purchasing an existing APA franchise is determined usually by the number of existing teams with in the franchise boundaries and the population factor of the area, expect to spend as a general rule $2000.00 per existing team. I will tell you from experience, get ready to spend some major time managing and growing this investment, you are in a service industry usually with plenty of competition, so establishing a GOOD reputation is vital to your success but success and growth is available.

We purchased an existing franchise with only 11 active teams 7 months ago and we are know at 40 teams, my wife still works full time but I left my company in February to devote all my time to our customers.
 
Scott Lee...... yes I agree that it takes a ton of work to get a league going..... I am thinking of expanding a league in my area, success doesnt come over night......... good luck to all
 
Les (?)...Wow! Been a long time! Good to hear that you got this going! You're spot on with your monetary assessment. That's what I sold my league for! Best of luck, and I hope to see you next time I'm in TX!

Scott Lee
www.poolknowledge.com

OnePocketChamp said:
The cost of purchasing an existing APA franchise is determined usually by the number of existing teams with in the franchise boundaries and the population factor of the area, expect to spend as a general rule $2000.00 per existing team. I will tell you from experience, get ready to spend some major time managing and growing this investment, you are in a service industry usually with plenty of competition, so establishing a GOOD reputation is vital to your success but success and growth is available.

We purchased an existing franchise with only 11 active teams 7 months ago and we are know at 40 teams, my wife still works full time but I left my company in February to devote all my time to our customers.
Click to expand...
 
Scott, just let me know when you are coming, dinner is on me. Maybe even play some pool to see if I still remember our lesson.
 
OnePocketChamp said:
The cost of purchasing an existing APA franchise is determined usually by the number of existing teams with in the franchise boundaries and the population factor of the area, expect to spend as a general rule $2000.00 per existing team. I will tell you from experience, get ready to spend some major time managing and growing this investment, you are in a service industry usually with plenty of competition, so establishing a GOOD reputation is vital to your success but success and growth is available.

We purchased an existing franchise with only 11 active teams 7 months ago and we are know at 40 teams, my wife still works full time but I left my company in February to devote all my time to our customers.
Click to expand...

So you would expect that $2000 per team would be the maximum?

Also, how many hours a week time and effort does it take to run a team with X amount of teams? What is the maximum amount of teams that would enable you to keep a full-time job? And do you have to grow you business by a certain percentage a year to keep your franchise?
 
You must log in or register to reply here.
Back
Top