FranchiseVerdict
California Pools logo
FV-00442·STRONGExcellent91

California Pools

Food & Beverage - Quick ServiceFranchising since 2018Website
Investment
$73K – $126K
5th pct Quick Service
Avg revenue
$2.7M
55th pct Quick Service
Royalty
Units
24
46th pct Quick Service
SBA default

Bottom line

  • Total investment $73K – $126K including a $45K franchise fee.
  • Average unit revenue of $2.7M/year (median $1.1M).
  • Rated STRONG with a risk score of 47/100.

Item 1 · who you're contracting with

The Franchisor

Legal entity
California Pools Franchise Inc.
Incorporated in
Wyoming
HQ
141 East Mercer Street, Suite A1, Dripping Springs, Texas 78620
Auditor
SingerLewak LLP
Audited financials
Franchisor revenue
$2.3M
vs $2.7M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one California Pools unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $2,733,724
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: qsr
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $73K–$126K
Working capital
$
FDD reports $5K–$10K

Unlevered ROIC · per unit

403%

Above typical band (30–60%)

0%30–60% Yale band80%
ROIC above 100% usually means the revenue figure is a system-wide aggregate or top-cohort number rather than a single-unit average. Verify the "Revenue · per unit" field against the brand's FDD Item 19 detail tables before relying on this output.

Store EBITDA · annual
$432K
EBITDA margin
15.8%
Total invested
$107K
Payback
3 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 California Pools units return on equity?

Edit assumptions

Equity IRR · 5-yr

27.5%

3.37× MOIC

Year-1 DSCR

2.96×

EBITDA ÷ debt service

Equity required

$11.8M

on $24.1M purchase

Total debt

$12.2M

SBA $5.0M + senior + seller note

SBA 7(a) request ($12.0M) exceeds the $5M program cap. Excess capped automatically; backfill via conventional or equity.

Overview

About

California Pools franchisees operate swimming pool construction, renovation, maintenance, or related services (likely contracting/retail). Day-to-day activities typically include client consultations, project management, crew coordination, equipment sales/installation, and customer service for residential or commercial pool projects.

CEO
Ryder Steimle
Founded
2018
FDD year
2025
States available
6

Item 7 · what it costs

The Vitals

Total investment
$73K – $126K
All-in to open one unit
Liquid capital
$5K – $10K
Cash you must have on hand
Franchise fee
$45K
Royalty
the greater of $1,000 or 4.5% of Gross Revenues
Ad fund
0.2%
typical 3–5%
Total fee load
4.7%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$2.7M
Per unit, per year
Median gross sales
$1.1M
Item 19 type
Average Gross Revenues
Sample size
21 units
vs category median 37
Range (low → high)
$55K$25.3M
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank55th
vs Food & Beverage - Quick Service peers
Investment cost rank5th
Lower investment ranks lower (better)
Royalty rate rank84th
Lower royalty = lower percentile (better)
Unit count rank46th
vs Food & Beverage - Quick Service peers
Risk score rank13th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
24
Opened
3
Last reporting year
Closed
3
Turnover rate
12.5%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+0.0%
Net unit change last year
3-yr CAGR
-4.0%
Compounded over last 3 years
2023
24±0
Franchised units
2024
24
Franchised units
2025
25
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 13 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 13 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

47
Risk · 0-100
STRONG47 / 100

Small, stagnant system with undisclosed profitability, absent going concern status, and high relative royalty burden presents material risk despite protected territory.

Score breakdown · what drove the 47 / 100 rating

  1. 01MEDNo Item 19 (Average Net Income) disclosed — cannot validate actual profitability against $72,940-$126,340 investment
  2. 02MEDOnly 24 units system-wide with unknown growth trajectory — suggests limited scale and potentially stagnant expansion
  3. 03HIGHGoing Concern status is FALSE — indicates potential financial instability or uncertainty about franchisor's viability
  4. 04MINORHigh royalty burden (4.5% of gross) on average $2.73M revenue ($122,865/year) with $45,000 upfront fee creates 6-year payback hurdle
  5. 05MINORWide investment range ($72,940-$126,340 variance of 73%) suggests inconsistent unit economics or undefined startup costs

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Exclusive Territory designated by zip codes, counties, cities, roads or highways
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Texas

Item 11

Training & Operations

Classroom training
94 hrs
On-the-job training
8 hrs
POS system
Poologics
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

36 numbers

Locked
(770) 828-••••
GA
(512) 475-••••
TX
(702) 717-••••
NV

One-time purchase · CSV download · Validation questions included

FDD download

California Pools · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above