Franchisel.com — FDD Diligence Memo
Pool Scouts
Generated 2026-04-17 · 2025 FDD · Government-filed source
Pool Scouts
2025 FDD Diligence Memo
Score of 0/10 driven by: low financial transparency.
Sys Health
2
Red Flags & Key Signals
Net unit loss of -2025 in reporting period. Declining networks may signal franchisee dissatisfaction or weak economics.
More than 1 in 5 units closed or transferred. Industry benchmark is typically 5–10%. Request Item 20 detail for prior years.
Only one senior executive role identified in Item 2. If a key person departs, franchisee support and leadership continuity may be at risk.
Avg $442,133 from government-filed FDD. Transparent disclosure is a positive signal.
Investment Overview
Items 5, 6, 7Total investment range: Not disclosed. Initial fee: $0. Royalty: —. Marketing fund: —.
Item 19 — Revenue
Item 19 — 2025 FDD (government-filed)Item 19 discloses avg revenue of $442,133 (Annual).
Sample: WeakThe FDD does not specify how many units were included in this figure.
Item 20 — System Health
Item 20 — 2025 FDDSystem contracting — net -2025 units in reporting period.
↓ Contracting2025 more units closed or left the system than opened. Closure/transfer rate of 50587.5% is high — industry benchmark is typically 5–10%. This warrants investigation into why franchisees are exiting.
Total Units
0
Net Growth
-2025
Turnover
50587.5%
Year-over-Year Trends
2025 FDDOpened
+2022
Closed
-2023
Net
-2025
Turnover rate: 50587.5% — high (industry avg 5–10%)
Prior-year Item 19 revenue data not available. Unit data above covers the reporting period in the 2025 FDD.
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19Revenue type unclear
The FDD does not clearly specify whether figures are gross sales, net sales, or a profit metric. This limits comparability.
Profit not disclosed
Item 19 reports revenue only. No expense breakdown is provided. Profit cannot be determined from this disclosure alone.
All units included
Revenue figure includes all reporting units — broadest, most conservative sample basis.
Sample size not specified
The FDD does not state how many units contributed to this figure.
Current data (2025)
Revenue figures are from 2025 — recent and relevant.
Medium extraction confidence
Revenue figure extracted with medium confidence. Cross-check with source FDD before relying on this number.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
Turnover rate is 50587.5% — above industry average. Ask existing franchisees: do they plan to renew? Would they buy this franchise again?
Look for: Unprompted enthusiasm vs. measured or reluctant responses. Ask about year-2 and year-3 revenue vs. projections.
2023 units closed in the most recent FDD period. Ask franchisees: what actually drove those closures — was it market conditions, operations, or franchisor decisions?
Look for: Franchisees who left voluntarily vs. those terminated. Any pattern by region, years in system, or franchisee profile.
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
The FDD does not include audited financial statements. Ask: do you have any visibility into the franchisor's financial health? Have you ever been concerned about the company's stability?
Look for: Even anecdotal signals — changes in leadership, delays in royalty statement processing, reduced marketing fund activity.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
The Item 2 business experience section doesn't show prior franchise system experience in leadership. Ask: how does the corporate team support franchisees who are struggling operationally?
Look for: Whether they have franchise-specific field support, franchise advisory councils, or prior experience navigating the franchisor-franchisee relationship.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Management Team — Item 2 (Business Experience)
Long-tenured executives (5+ years); thin executive bench (≤1 senior role identified).
Item 2 · 2025 FDD · confidence: medium
Data sources: 2025 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Extracted from 2025 FDD filed with WI DFI (file #638818). Source: 638818-2025-Pool-Scouts.pdf. · Payback estimates and margin assumptions are editorial — not from the FDD. This memo does not constitute legal or financial advice. Consult a franchise attorney and accountant before signing. Generated 2026-04-17 by Franchisel.com.