We are a Nevada corporation that was formed on August 26, 2014. We are in the business of granting franchises and providing initial and ongoing support to our franchisees. Our principal business address is 4080 Gavitt Stallmanj Suite 200* Granite Bay, CA 95746. From August 2014 until February 2016, our principal address was 530 E. Patriot Boulevard, Unit 324, and Reno, Nevada! 89511. Our agents for service of process are listed \n Exhibit B. We have never done business under any name other than Premier Franchise Management or Premier Pools & Spas or Premier Pools or Pinnacle Pools & Spas. We do not have any parent entity. We do not have any affiliates which supply products and Services to our franchisees. We began offering Premier Pools & Spas franchises in October 2014 and offering Pinnacle Pools & Spas franchises in May 2017. Before that, we had never offered franchises in any line of business. We do not engage in any other business: however, we reserve the right to engage in other business activities.
We began offering Premier Pools & Spas franchises in October 2014 and offering Pinnacle Pools & Spas franchises in May 2017. Before that, we had never offered franchises in any line of business. We do not engage in any other business: however, we reserve the right to engage in other business activities. Our Affiliates | From July 2011 to November 2014, our affiliate* Premier Pools Management Crop (“PPMC”), offered license opportunities for a business marketing, selling, and supervising the construction and remodeling of swimming pools and spas, but this license opportunity differed from the franchise opportunity we now offer in regards to use of the Marks and System, fees, assistance and controls. PPMC is a Nevada corporation that was formed on June 30, 2011. Its business address is 5748 Avenida Robles, Granite Bay, CA 95746. PPMC Still has a number of these license opportunity arrangements in existence. Since we began offering franchises, most of the existing PPMC license owners obtained a Premier Pools & Spas® franchise. PPMG's predecessor company, Premier Popis Inc. (“PPI”), had more than 20 years' experience in operating a business similar to type you will operate. From. August 1988 to September 2010, it operated a business marketing, selling, and supervising the construction and remodeling of swimming pools and spas. PPI was a California corporation that was incorporated on December 12, 1989. Its principal business address was 11250 Pyrites Way, Rancho Cordova, California 95670. Premier Pools Inc. never did business under any name other than Premier Pools Inc. or Premier Pools or Premier Pools & Spas. It never engaged in any other line of business. It never offered franchises in any line of business. Our affiliate, PPSF, LLC (“PPSF”), operates a franchise system in the business of marketing, selling, and providing cleaning, maintenance and repair services for swimming pools and spas, and selling related items and services. PPSF is a Texas limited liability company that was formed on April 28, 2017 as “Premier Pacific, LLC.” It changed its name to PPSF, LLC on November 16, 2017. Its principal business address is 1011 Surrey Ln #200, Flower Mound, and Texas 75022. PPSF began offering Premier Pool Service franchises in December 2017 and Pinnacle Pool Service franchises in January 2018. It has about 5 franchises in about 2 states. PPjSF's franchisees operate under the trade names Premier Pool Service or Pinnacle Pool Service. PPSF never did business under any name other than its entity name or Premier Pool Service or Premier Pools & Spas or Pinnacle Pool Service. It never engaged in any other line of business.
The franchise described in this disclosure document relates to the operation of a business to market, sell, and supervise the construction and remodeling of swimming pools and spas, and providing related items and services, under our trademarks service marks, trade dress, color schemes and logos (collectively, the “Marks”) and using our distinctive programs, procedures, protocols, standards, manuals and other confidential business systems, practices and materials (collectively^ the “System”). At present, our System includes our training programs and materials, our marketing programs and materials, our operation policies and procedures, our management programs and procedures, our quality control and customer satisfaction Standards and programs, our other System Standards, our Manual and other intellectual property (including Confidential information). The business operated under our System and Marks is referred to in this disclosure document as the “Franchised Business.” We will provide our franchisees with know-how, training and guidance for operation of the Franchised Business. The Franchised Business does not engage in the actual construction or remodeling of pools and spas. Instead, our franchisees will hire contractors to perform those services.
Your initial franchise fee will be $30,000. The initial franchise fee is due when you sign the Franchise Agreement. In our last fiscal year (2018), the initial franchise fee we charged ranged from $0 to $30,000. We waived the initial franchise fee for licensees of PPMC in good standing. If you qualify, we may offer you financing for up to $27,000 of the initial franchise fee. Any financing we offer will bear interest at 10% per| year and will be payable in equal monthly installments according to an agreed-upon schedule. The maximum time period we would offer financing is 12 months. Monthly payments would depend on the amount financed and the time period of financing. See Item 10 for more information. Our standard form promissory note is attached as Exhibit G. \ Otherwise, we do not require you to make any payments to us or our affiliate before you begin operating the Franchised Business. I we do not intend to refund any part of the initial franchise fee. However if we terminate the franchise for good cause following your failure to satisfy the evaluation criteria during the 90-day probation period and failure to Cure the deficiencies within the 30-day cure period following written notice, then we will refund half of the initial franchise fee to you within 30 days after you have fully performed your post-term obligations to our reasonable satisfaction.
If you qualify, we may offer you financing for dip to $27,000 of the initial franchise fee. Any financing will bear interest at 10% per year, and will be payable in equal monthly installments according to an agreed-upon schedule. The amount of interest charged will not exceed the maximum amount allowed by applicable state law. The maximum time period we would offer financing is 12 months. Monthly payments would depend on the amount financed and the time period of financing. Our standard form Promissory Note Is attached as Exhibit 6. ! We do not require any security interest or any personal guarantee by anyone for the financed debt. The debt may be pre-paid at; any time without penalty. If you fail to make any debt payment when due, we may terminate the franchise agreement upon 10 days' notice to you, accelerate the entire debt, and collect from you any costs of Collecting the debt from you (including court costs arid reasonable attorneys' fees). The Promissory Note includes standard waivers of protest, presentment, notice of dishonor, notice of acceleration and notice of changes. Otherwise, we do not require you to waive defenses or other legal rights. It is our practice to retain the debt, rather than to Sell, assign or discount it to a third party. We |do not place financing with any third-party lender, and do not receive any consideration for placing financing. Other than as described here, we do not offer direct or indirect financing. We do not guarantee your notes, leases or any other Obligations.
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 maybe given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying: or (2) a franchisor supplements the information provided in this Item 19, for example, providing information about possible performance at a particular location or under particular circumstances. The following table presents certain financial information of certain of our franchisees who were previously licensees of PPMC. The explanatory notes following the table are an important part of the information presented. Written substantiation for the financial performance representation will be made available to prospective franchisees on reasonable request. Your financial performance depends on a variety of factors including the prices you will be able to charge for a swimming pool, so as to be competitive in your market and the number of pools you construct. To assist you in assessing possible outcomes for different market areas, we provide the following historical information for our franchisees in each of three market scenarios: a large market such as Houston, TX; a medium size market such as Temecula, GA; and a small market such as Boise, ID. We have also rated the competition for each market as High (50 or more competitors). Average (15 to 30 competitors). Low (7 to 1'5 competitors).