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Pool Scouts

Pool Scouts Franchising, LLC

Company Information

2829 Guardian Lane, Suite 100 Virginia Beach, VA 23452

[email protected]

Pool Scouts Franchising, LLC was organized as a Virginia Limited Liability Company on December 10, 2015. They maintain their principal place of business at 2829 Guardian Lane, Suite 100, Virginia Beach, VA 23452. Their parent is Buzz Franchise Brands, LLC, which was organized on November 23, 2009. They began offering franchises on February 23, 2016.

If you receive our approval, you (we will refer to individuals, partnerships, corporations, and the owners of partnerships and corporations as “you” and “your”) may sign a Pool Scouts franchise agreement (“Franchise Agreement”, see Exhibit D) to establish and operate the Franchised Business according to our established system (“System”). With our approval, you may also convert an existing business offering similar services to a franchised business under the terms stated in the franchise agreement and related agreements. We offer to qualified persons the right to develop up to 3 Franchised Businesses within the Development Area determined by us, under an area development agreement (“Area Development Agreement”). The Area Development Agreement requires you to open an agreed upon number of Franchised Businesses under a development schedule. You may be required to open 2 Franchised Businesses within the first year. You must sign our then-current form of Franchise Agreement for each Franchised Business that you open. This means that for each future franchise, the area developer may be required to sign a form of Franchise Agreement that is different from the form of Franchise Agreement attached in this offering. The distinguishing characteristics of the System include, without limitation, distinctive Marks, uniform standards, specifications, and procedures for operations; quality and uniformity of the pool and spa cleaning and maintenance products, equipment and services provided by licensed and Franchisor-approved professionals; special confidential techniques for selling products, services, and service agreements; route scheduling; back-office operations; field marketing techniques; emblems; uniforms; instructional materials and training courses; advertising and promotional programs for use in the Franchised Business. (Any and all aspects of the System may be changed, improved, and further developed by us from time to time.) The Franchise Agreement allows you to use our Marks in the operation of the Franchised Business. You must conduct the Franchised Business according to our Confidential Operations Manual, Sales Manual, and other manuals and instructional materials that we create in the future for use in the System (“Manuals”). You must offer only those services, equipment and products, which we specify, and in the manner we specify. You must use only the integrated business management system and credit card processing service approved by us, and you must obtain certain equipment, supplies, products, services and printed materials only from us or third party suppliers who meet our specifications and whom we have approved in advance. The Franchised Business offered by this Franchise Disclosure Document will operate a business providing swimming pool and spa service, including pool openings, pool service to maintain a clean pool with proper water chemistry, and pool closings. Pool service does not include pool repair services beyond minor repairs requiring low technical expertise. In time, with the appropriate technical training, expertise and applicable certification, we anticipate that our franchisees may provide pool repair services. The repair services could also be offered by a franchisee hiring a qualified professional. The Franchised Business may provide only authorized products and services, including cleaning and maintaining swimming pools within a geographic area of responsibility (“Territory”). Your Territory will contain a number of “Targeted Households,” typically 6,000 to 7,500 estimated Targeted Households. A “Targeted Household” is a single family detached home with a pool or spa as well as an estimated annual gross income of at least $75,000. The number of Targeted Households is estimated because we rely on a third party source to supply us with this data. While we believe this data to be accurate within an acceptable margin of error, there is no way to guarantee or know the actual number of households with swimming pools or spas and that meet gross income criteria. The actual number of swimming pools with the gross income criteria may be more or less than 6,000 to 7,500. Schedule A of the Franchise Agreement will set forth the number of Targeted Households in your Territory. We or an affiliate will identify the Targeted Households in the Territory with reference to information provided by a third party data compilation and demographic information service provider that we select. We may, in our sole discretion, permit you to add unoccupied zip codes, which are immediately adjacent to your Territory, from an unoccupied territory at a cost of $1.00 per Targeted Household located within that unoccupied zip code (the “Purchased Zip Codes”). All Purchased Zip Codes will be included in your defined Territory, and all references to “Territory” include the Purchased Zip Codes. Since the Purchased Zip Code will become part of your Territory, you must include all Targeted Households within the Purchased Zip Code in the Mailer Program in which you are required to participate. You must participate in the Mailer Program and pay the associated fees described in Items 5, 6, 7 and 8 of this disclosure document. As of the issuance date of this disclosure document, we or our affiliate are the only approved supplier of the Mailer Program services. It is essential to the ongoing operation of the Franchised Business that you develop new customers, as well as service those existing or potential customers you develop.

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

7/10

Earning Transparency

7/10

Investment Accessibility

7/10

Summary of potential earnings

Average Gross Profit Per Unit

$264,799 / unit

Average Gross Profit During 2019
Franchise Type:

Maintenance Services

$256,015

Industry Low

$638,195

Industry High

Average Revenue Per Unit

$65,635 / unit

Average Revenue During 2019
Franchise Type:

Maintenance Services

$65,635

Industry Low

$4,726,755

Industry High

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Distribution of Pool Scouts Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $73,355 Maximum: $77,445

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $110,280 Maximum: $113,430

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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