California Pools
2025 Franchise Disclosure Document

Swimming pool and spa construction and remodeling business (construction supervision model)

June 27, 2025

$45,000 (new), $0 (conversion)

Exclusive (conditioned on $1M sales quota)

For a new CP business, the total estimated initial investment ranges from $72,940 to $126,340, which includes an initial lump sum Franchise Fee of $45,000. CP offers a 10% discount ($4,500) for qualified veterans and first responders. For conversion franchisees from CP's affiliate license or agency agreements, the estimated total investment is just $9,440 to $25,840, with $0 paid to the franchisor or affiliate upfront.

No. California Pools explicitly states: "We do not offer direct or indirect financing." This contrasts with ASP, which offers structured financing up to 75% of the franchise fee and 100% forgiveness potential for converting businesses.

CP's royalty fees are tiered and escalate over time:

• Months 1-12: Either 3.75% or 4.5% of Gross Revenues
• Months 13-24: Increased percentage (specific rates vary)
• Month 25+: Greater of $1,000 or a higher percentage (4.5% or 5.25%) monthly

There is no required local or regional cooperative marketing fee.

This is the most critical performance requirement. For the first calendar year of operation, CP requires achieving a minimum annual Gross Revenue of about $1,000,000. According to the FDD: "Generally, the annual sales quota for the first calendar year in which you operate is based on achieving a minimum annual Gross Revenue of about $1,000,000, but individual quotas may differ depending on the conditions of the specific market." The quota is suspended for the first six months after signing. Failure to meet the quota can result in unilateral territory reduction or outright termination. The reduction penalty can match the average percentage shortfall over a two-year period.

CP grants an exclusive territory, defined by zip codes, counties, cities, roads or highways, or other boundaries agreed upon between you and the franchisor. Territories range from 270 square miles to 5,780 square miles. However, continued exclusivity is rigorously conditional on achieving the annual sales quota. The FDD states that maintaining territorial exclusivity depends on meeting performance benchmarks, distinguishing it from nonexclusive models like Premier Pools & Spas.

California Pools has strict operational mandates:

• Supervisory Role: CP Businesses do not engage in actual construction. Franchisees hire properly licensed and insured contractors.
• Manager Licensing: The manager must maintain a contractor's license in good standing in the state where the CP Business is located.
• Personal Participation: "We require that you participate personally in the direct operation and management of the CP Business or that the operation of the CP Business is at all times under the direct supervision of a manager who has satisfactorily completed our training program and maintains a contractor's license."
• Construction Size Limit: Franchisees cannot construct any commercial or other pool larger than 2,000 square feet without franchisor's prior written consent.

Franchisees must use the Internet portal provided by CP's affiliate, Poologics, for accounting, business operations, and customer relationship management (CRM). The franchisor reserves the right to independent access to all gross revenue and transaction data within the Poologics system. This centralized technology requirement ensures standardized operations across the system.

The Franchise Agreement mandates that all disputes with the franchisor must be resolved by mediation, arbitration, and/or litigation only in Austin, Texas. This is an important consideration for franchisees located outside of Texas.

Yes. Item 19 is present in the FDD, with 2024 data provided for 21 covered businesses. However, the FDD also states: "Other than the preceding financial performance representation, we do not make any financial performance representations." Specific AUV/Revenue data (mean, median, ranges) are not summarized in available excerpts, but the franchisor's peer competitor Premier Pools & Spas reported an Average Gross Revenue of $3,744,777 for 2023.

According to the FDD: "Warmer markets generally lend themselves better to swimming pool construction businesses than markets with more extreme weather patterns." This is a critical consideration when evaluating territory selection and sales quota feasibility.

Yes. The FDD notes: "If you are converting to our System from a license or agency agreement with CPI, your Royalty will be the same as the royalty stated in the license or agency agreement, as applicable." This grandfathering provision protects existing affiliate operators from sudden fee increases and makes the estimated investment dramatically lower ($9,440 to $25,840 with $0 upfront to franchisor).