FranchiseVerdict
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A51/100FDD 2025

Premier Pools & Spas / Pinnacle Pools & Spas — Litigation & Risk

Food & Beverage - Quick Service · FDD Items 3, 4 & 5

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Elevated Risk

37 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
37
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
51 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
16
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Tennessee
State whose law governs disputes — relevant if you're not based there

What drove the 51/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-0.8% YoY) indicates system contraction and potential franchisee dissatisfaction
  2. 02HIGHMultiple active litigations including NY Attorney General investigation for unregistered sales suggests regulatory and compliance violations
  3. 03MEDNet income not disclosed despite $3.7M average revenue—likely indicates franchisees are unprofitable or marginally profitable
  4. 04MINORNo protected territory creates direct competition risk and cannibalizes franchisee revenue
  5. 05HIGHGoing concern status is FALSE, indicating potential financial distress at corporate level
  6. 06MEDEscalating royalty rates (3.5% to 4%) coupled with undisclosed profitability suggests aggressive fee extraction from struggling franchisees
  7. 07HIGHCopyright infringement and fraud allegations raise questions about corporate integrity and operational practices
  8. 08MINORHigh initial investment ($45K-$119K) with declining unit growth suggests poor ROI and franchisee exit velocity

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.