The Focused Service: Analyzing the High-Touch, High-Control Model of Puddle Pool Services

Puddle Pool Services (PPS) occupies a specific and rapidly evolving niche within the pool franchise landscape. Unlike the complex, high-capital construction supervision models offered by Premier Pools & Spas (PFM) or California Pools (CP), or the hybrid mobile/retail mandate of Poolwerx (PWX), PPS is purely dedicated to professional residential and commercial pool, spa, hot tub, and water feature cleaning and maintenance services. This sharp focus allows PPS to appeal to operators seeking a mobile, service-driven business model, but it comes with a high level of franchisor control and a substantial ongoing fee structure.

Early-Stage Growth and High Entry Costs

As of December 31, 2024, PPS represented a very small but expanding network, counting only 1 Franchised Business and 1 Corporate Business in operation. This small footprint suggests that franchisees entering the system are getting in at a foundational stage, accepting the risk and potential reward associated with a rapidly scaling brand.

The total initial investment for a Puddle Pool Services franchise ranges from $98,100 to $122,800. A significant portion of this investment, between $67,800 to $73,500, must be paid directly to the franchisor.

The Initial Franchise Fee is tiered based on the number of territories purchased, starting at $49,500 for one territory and increasing up to $343,500 for ten territories. Furthermore, if a territory contains more than 10,000 households with pools, the fee increases by an additional $4.00 per pool over that threshold.

In a critical distinction from systems like ASP, which offers highly flexible financing including a Conversion Incentive Program with up to 100% forgiveness, PPS explicitly states: "We do not offer direct or indirect financing. We do not guarantee any note, lease, or obligation on your behalf".

The Ongoing Financial Commitment

The operating costs associated with the PPS model highlight the financial demands placed on the franchisee immediately after launch.

1. Continuing Royalty Fee: Franchisees must pay a Continuing Royalty Fee equal to the greater of seven percent (7%) of Gross Revenue or $600 monthly. This royalty percentage is significantly higher than typically disclosed percentages across the franchise industry and represents a substantial portion of gross sales regardless of actual profitability.
2. Brand Fund Contribution: Franchisees must contribute two percent (2%) of monthly Gross Revenue to the Brand Development Fund, with the franchisor reserving the right to increase this to three percent (3%).
3. Local Marketing: Franchisees are required to spend a minimum of $9,000 on initial local advertising in Year 1 (over nine months) and then at least $600 per month thereafter. All marketing activities must be conducted through the in-house marketing team.

It is important to note that the Brand Development Fund is not audited, although an annual unaudited financial statement is available upon written request. PPS is clear that it has no obligation to make expenditures that are equivalent or proportionate to your Brand Development Fund contribution.

Exclusive Territory, Reserved Competition

PPS grants the franchisee a limited protected territory (the "Protected Area"), defined by contiguous zip codes and encompassing up to 10,000 households with pools. The franchisee receives an exclusive territory.

However, this exclusivity is significantly curtailed by the franchisor's retained rights. PPS reserves all rights to sell products and services under the Marks in the Protected Area through Alternate Channels of Distribution, which include retail stores, the Internet, or direct marketing. This means that while no other traditional mobile PPS franchisee may operate in the area, the franchisor or its affiliates can compete directly for customers via e-commerce or retail sales without compensating the franchisee.

Furthermore, the franchisor specifically reserves the right to solicit, negotiate rates with, and service pool cleaning companies that conduct business across multiple areas (Commercial Accounts). If PPS offers the franchisee the first right to service these Commercial Accounts and the franchisee declines, the franchisor may service them directly or permit another franchisee to do so.

Control Over Operations and Intellectual Property

PPS maintains tight control over operations, consistent with a pure service model focused on standardization:

• Technology & Reporting: Franchisees must use proprietary CRM software ("PuddlePower") and comply with strict electronic reporting standards, which include daily acknowledgement of all electronic mail sent by the Franchisor.
• Marketing and Data: Franchisees are generally prohibited from creating their own social media platforms (like Facebook or LinkedIn) for the business, as these are provided by the franchisor's in-house team. The franchisee is also expressly prohibited from selling products on the internet, to dealers, or distributors for subsequent re-sale.
• Post-Termination Restrictions: The non-compete clause is highly restrictive, preventing the former franchisee or principal from participating in any competing pool cleaning business for 24 months within fifty (50) miles outside of the boundaries of the former Territory or within fifty (50) miles of any PPS office location.
• Personal Guarantees: If the franchisee is married, the spouse must sign the Personal Guaranty, even if they are not an owner of the business entity.

The PPS model is ideal for service-minded entrepreneurs willing to pay a high proportion of gross revenue for the benefits of an exclusive territory and a centralized operational system, provided they can generate sufficient revenue volume to handle the combination of a high 7% royalty and a 2% Brand Fund fee. The trade-off here is accepting substantial corporate control and potential competition via e-commerce in exchange for entry into a highly focused, low-overhead mobile service business.

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