Franchise vs Independent Calculator
Compare the real cost of buying a pool service franchise versus building an independent business over 5 years—including all fees, royalties, and hidden costs.
5-Year Comparison
Franchise vs Independent: Making the Right Choice
Starting a pool service business? You have two main paths: buy into an established franchise or build your own independent company. Both can work, but the financial implications differ dramatically over time.
The True Cost of a Franchise
Franchises advertise brand recognition, training, and support—but these come at a significant ongoing cost. Most pool service franchises charge:
- Initial franchise fee: $30,000-80,000 upfront
- Ongoing royalties: 5-8% of gross revenue, every month, forever
- Marketing fund: 1-3% of revenue for corporate marketing
- Required purchases: Mandated software, uniforms, chemicals, or equipment at premium prices
On $400,000 in annual revenue, 8% in royalties and marketing means $32,000 per year going to the franchisor—money that could be profit or reinvestment in your own business.
What You Get from a Franchise
- Brand recognition: Varies widely; some franchises have strong local presence, others don't
- Training: Useful for newcomers, less valuable if you have industry experience
- Systems: Proven processes for operations, sales, and customer management
- Support: Ongoing help with challenges (quality varies significantly)
- Marketing: National/regional advertising and lead generation
The Independent Advantage
Independent operators keep all their profits but must build everything themselves:
- No royalties: 100% of profit stays with you
- Freedom: Choose your own software, pricing, service model, and branding
- Flexibility: Pivot quickly without franchise restrictions
- Exit value: No transfer fees or approval requirements when selling
The trade-off: you need to figure out marketing, systems, and operations yourself. This is harder in year one but becomes an advantage as your business matures.
When Franchises Make Sense
- You're completely new to the pool industry
- The specific franchise has strong brand recognition in your market
- You value structure and don't want to build systems from scratch
- You have capital but limited time or business experience
When Independent Makes Sense
- You have pool industry experience
- You're comfortable with sales and marketing
- You want maximum flexibility and profit potential
- The franchise brand isn't well-known in your specific market
Frequently Asked Questions
Are franchise territories protected?
Usually, but read the fine print. Most pool service franchises grant "exclusive territories" but these may be smaller than you expect, or may have exceptions for commercial accounts, referrals, or existing customers. Some territories also have performance requirements—fail to hit targets and you may lose exclusivity.
Can I leave a franchise later?
Yes, but it's complicated. Franchise agreements typically run 5-10 years with renewal options. Exiting early usually means losing your franchise fee and potentially facing non-compete restrictions. When selling, the franchisor must approve the buyer and typically charges a transfer fee (often $5,000-15,000). Your customers become the franchisor's if you don't renew.
Do franchises really generate more leads?
It varies enormously. Ask franchisees directly—not just the ones the franchisor suggests. Some franchises have strong lead generation; others provide few leads beyond what you'd get on your own with good Google presence. Factor in that you're paying for these leads through royalties whether they materialize or not.
What's the real failure rate?
The "franchises have lower failure rates" claim is debated. Pool service specifically has relatively low barriers and high success rates for both franchises and independents. What matters more: your work ethic, customer service, and financial management—not whether there's a corporate logo on your truck.
How do I get training without a franchise?
Multiple options: CPO certification, manufacturer training, industry associations (IPSSA, APSP), online courses, and mentorship from experienced operators. You can get excellent training for $2,000-5,000—a fraction of a franchise fee. Many successful independent operators started by working for another pool company first.
Never Miss Another Customer Call
Whether you go franchise or independent, every missed call is money left on the table. Pool Dial answers every call professionally and captures new customer inquiries 24/7—at a fraction of the cost of a receptionist.
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