Discover the secrets to building a successful franchise model in the latest episode of Eye On Franchising. Join the host as he interviews Michael Wagner, the president of Pool Scouts, a franchise for pool cleaning services. Learn how Michael's background in corporate training and banking helped prepare him for success in the franchising industry. Discover how Pool Scouts stands out in a market primarily made up of small, mom-and-pop businesses, and how the company focuses on residential swimming pool cleaning, maintenance, and repairs with a clear target customer base. The podcast reveals how the franchise business model works, including the importance of having a standardized business model, and how the company has won several awards for being one of the best places to work. Gain insights into the misconceptions surrounding a pool business, and how Pool Scouts has grown significantly over the past two years, with COVID-19 leading to a surge in demand for pools. With 46 franchisees across the country, including 112 territories, Pool Scouts is recognized as a premium service and does not try to compete on the basis of price. Tune in to the Eye On Franchising podcast to learn more about this exciting franchise opportunity. Don't miss out on this opportunity to gain valuable knowledge and insights from industry leaders. Subscribe now! Topic: Franchising in the Pool Cleaning Industry - Guest speaker: Michael Wagner, President of Pool Scouts - Background and experience of Michael Wagner - Standardized business model and importance of branding - Pool Scouts franchise overview - Customer service and high net promoter score - Investment required and territory definition - Importance of data in decision making - Training process for franchisees - Franchise development process for Buzz Franchise Brands and Pool Scouts - Validation process for franchise candidates - Success of the Pool Scouts franchise model - Call to action to like, follow, and subscribe to the podcast. KEY POINTS [0:0:16] With Eye on Franchising, you can unlock the key to financial freedom and achieve the success of your dreams - all with minimal investment, tailored to your unique mindset, skill set and life experiences! [0:0:34] Pool Scouts, one of the four exciting franchises owned by award-winning Franchise Brands, is quickly establishing itself as a premier destination for employment excellence. [0:7:44] Military veterans, retail professionals, and experienced HR gurus are all finding success with the Pool Scouts franchise opportunity! [0:9:8] With a strong presence across the nation, our network of 46 franchisees has expanded to 112 territories, providing year-round and seasonal services to customers nationwide. [0:11:16] During peak months, franchisees can earn a substantial paycheck through large-ticket pool openings and closings, while taking a well-deserved break during idle months. [0:12:3] Organic referrals are the most cost-effective and powerful way to grow your customer base, showcasing the strength and credibility of your brand! [0:19:35] At Pool Scouts, we strive to exceed expectations and make every customer's day extraordinary with our superior service. [0:22:53] With minimal start-up costs and no need for commercial real estate, investing in a Pool Scouts franchise is an incredibly cost-effective way to launch your business! [0:23:54] Elevate your earning potential with Pool Scouts' comprehensive training program, offering powerful insights into both technical and business operations that can help you achieve franchisee success. [0:31:25] At Pool Scouts, we provide a comprehensive, immersive, and intuitive franchise development process that enables potential franchisees to make informed decisions and receive honest feedback from our experienced team and existing franchisees. [0:34:12] With a focus on recurring service, brand efficiency, and strategic partnerships, Pool Scouts is revolutionizing the pool care industry, delivering unparalleled results to customers nationwide. Have you heard the news? We are officially on YouTube. Come check out a few videos have have and give me a follow! https://www.youtube.com/channel/UCwoAdrkPZmveJt5AQRDk8WA --- Lance Graulich Franchise Consulting Services from ION Franchising Eye On Franchising
Discover the secrets to building a successful franchise model in the latest episode of Eye On Franchising. Join the host as he interviews Michael Wagner, the president of Pool Scouts, a franchise for pool cleaning services. Learn how Michael's background in corporate training and banking helped prepare him for success in the franchising industry. Discover how Pool Scouts stands out in a market primarily made up of small, mom-and-pop businesses, and how the company focuses on residential swimming pool cleaning, maintenance, and repairs with a clear target customer base.
The podcast reveals how the franchise business model works, including the importance of having a standardized business model, and how the company has won several awards for being one of the best places to work. Gain insights into the misconceptions surrounding a pool business, and how Pool Scouts has grown significantly over the past two years, with COVID-19 leading to a surge in demand for pools. With 46 franchisees across the country, including 112 territories, Pool Scouts is recognized as a premium service and does not try to compete on the basis of price.
Tune in to the Eye On Franchising podcast to learn more about this exciting franchise opportunity. Don't miss out on this opportunity to gain valuable knowledge and insights from industry leaders.
Subscribe now!
Topic: Franchising in the Pool Cleaning Industry
- Guest speaker: Michael Wagner, President of Pool Scouts
- Background and experience of Michael Wagner
- Standardized business model and importance of branding
- Pool Scouts franchise overview
- Customer service and high net promoter score
- Investment required and territory definition
- Importance of data in decision making
- Training process for franchisees
- Franchise development process for Buzz Franchise Brands and Pool Scouts
- Validation process for franchise candidates
- Success of the Pool Scouts franchise model
- Call to action to like, follow, and subscribe to the podcast.
KEY POINTS
[0:0:16] With Eye on Franchising, you can unlock the key to financial freedom and achieve the success of your dreams - all with minimal investment, tailored to your unique mindset, skill set and life experiences!
[0:0:34] Pool Scouts, one of the four exciting franchises owned by award-winning Franchise Brands, is quickly establishing itself as a premier destination for employment excellence.
[0:7:44] Military veterans, retail professionals, and experienced HR gurus are all finding success with the Pool Scouts franchise opportunity!
[0:9:8] With a strong presence across the nation, our network of 46 franchisees has expanded to 112 territories, providing year-round and seasonal services to customers nationwide.
[0:11:16] During peak months, franchisees can earn a substantial paycheck through large-ticket pool openings and closings, while taking a well-deserved break during idle months.
[0:12:3] Organic referrals are the most cost-effective and powerful way to grow your customer base, showcasing the strength and credibility of your brand!
[0:19:35] At Pool Scouts, we strive to exceed expectations and make every customer's day extraordinary with our superior service.
[0:22:53] With minimal start-up costs and no need for commercial real estate, investing in a Pool Scouts franchise is an incredibly cost-effective way to launch your business!
[0:23:54] Elevate your earning potential with Pool Scouts' comprehensive training program, offering powerful insights into both technical and business operations that can help you achieve franchisee success.
[0:31:25] At Pool Scouts, we provide a comprehensive, immersive, and intuitive franchise development process that enables potential franchisees to make informed decisions and receive honest feedback from our experienced team and existing franchisees.
[0:34:12] With a focus on recurring service, brand efficiency, and strategic partnerships, Pool Scouts is revolutionizing the pool care industry, delivering unparalleled results to customers nationwide.
Have you heard the news? We are officially on YouTube. Come check out a few videos have have and give me a follow!
https://www.youtube.com/channel/UCwoAdrkPZmveJt5AQRDk8WA
---
Franchise Consulting Services from ION Franchising
00:00:00
00:00:02 Welcome to Eye on Franchising. Are you looking for business opportunities? Well, you are in the right place. We represent over 650 franchises and business opportunities. We will help you find your perfect franchise for free. We even have a free assessment on our website that will help us determine what the best businesses for you based on your investment level mindset, skill set and life experiences. This is Eye on Franchising, where we share our vision for your franchise future. I'm your host, Lance Graulich. Each week we will speak to fascinating folks from the world of franchising, franchisors and founders, franchise funders and franchisees. Are you looking to find your perfect franchise? Or perhaps you are an independent business owner looking to grow and scale your business by setting up a franchise. Either way, our team can help you Eye on Franchising, where you will learn the A to Z's of franchise.
00:01:07 Hello everyone and welcome back to another fabulous episode of Ion Franchising. I am your host, Lance Graulich. So today, this gentleman, we're going to talk about a great franchise. I haven't had any other brand in this particular industry on the podcast as of yet. And, this particular gentleman is president of this brand. And he, was a corporate in corporate training. Amazing background in corporate training and then banking. And then guess what? He jumped right in the deep end. Yes he did. Deep end of the pool, that is. So let's welcome Michael Wagner, president of Pool Scouts. Welcome Michael.
00:01:45 Thank you, Lance. I'm happy to be here.
00:01:47 Awesome. Well, thank you for being here, Michael. Let's start way back in the distant past. What did Michael want to be when he was growing up? I mean, when you were in high school, what did you expect that you were going to be? Not in Franchising. I presume.
00:02:03 Well, like any kid, I wanted to.
00:02:05 Be a professional athlete. In my case, I wanted to be a professional soccer player or surfer.
00:02:10 Both things I still like to do.
00:02:11 A lot, even in, my ripe age of something, over 50.
00:02:16 Uh, buI certainly liked early.
00:02:19 On the notion of business and making money and creating things were always intriguing to me.
00:02:27 So yeah, I would say I wanted to be a professional athlete.
00:02:30 Quickly realized that was not going to happen, but nevertheless had a drive and motivation to, create as well.
00:02:39 So what was it after the athletics faded in your mind? What was it then? Was it going to be a doctor? an astronaut?
00:02:51 I was an okay student, but not a stellar student. So I think the doctor, lawyer.
00:03:00 Track was, kind of off the cards.
00:03:03 ah, but, I did enjoy early on.
00:03:06 I worked at some small restaurants and, got a chance in a field.
00:03:11 To kind of see small business and enjoyed, uh, that even though my first kind of 20, some years almost were in the corporate world. They had a small feel to it.
00:03:24 as well, with, uthe first.
00:03:26 Company having 50 employees when I started.
00:03:29 Out, and then when we ended up.
00:03:30 Selling the company to Dupont, prior to.
00:03:32 That, we had 700 employees and became a part of a company with 77,000 employees.
00:03:38 But wow, I did enjoy the small business and the startup and the growth.
00:03:43 Phases of all business. I knew that early on.
00:03:46 and I also liked businesses that dealt with people.
00:03:49 That was important to me. I enjoyed interacting with people and products that help people at the end of the day, too.
00:03:55 So, this great corporate training background, you went into the banking world. How did you fall into the world of franchising?
00:04:05 Yeah, in my first kind of real career with a company called Coastal.
00:04:11 Training Technologies, I was fortunate enough to walk into the business at the right time. I had a double major in college in economics and Spanish. I speak fluent Spanish, had lived in Spain for three years and had a.
00:04:23 Degree as well, and thought, well, I.
00:04:25 Speak Spanish and have a little bit of background in business. I should be doing international business.
00:04:30 And I really walked into a situation.
00:04:32 Where I was able to take a company that was small and domestic at.
00:04:35 The time and take it international.
00:04:37 Ended up opening up offices for that business, in multiple countries and taking the business model and replicating it around the world. Even though it wasn't franchising, it was a unit economic model driving the same practices and standard operating procedures, marketing, sales, et cetera, uh, around the globe.
00:04:56 so, it was really kind of a foray into starting businesses, but.
00:05:01 Also replicating the same business model, which.
00:05:04 Certainly translates to, franchising on
00:05:07 The banking side of things, that was.
00:05:09 A few year stop.
00:05:10 It was great experience, learning on the opposite side of the financials world.
00:05:15 but really happy to get back into and really love franchising and helping.
00:05:20 People build businesses, especially with a standardized great business model like we have.
00:05:27 So how did you officially get to pool Scouts?
00:05:30 So Kevin Wilson is the CEO and.
00:05:32 founder of Buzz franchise brands. And, he and I have children that are the same age.
00:05:38 Actually, we met at a kid's birthday party when the kids were really young.
00:05:42 And both of us have college graduates. and so anyway, stayed in touch.
00:05:47 Over the years and had done some entrepreneurial things in addition to the training.
00:05:52 World that I mentioned and really was at a crossroads. And talked to Kevin and about, the opportunity to come work for Buzz Franchise Brands and, help start the second brand. At the time, we had Mosquito Joe, which was going like gangbusters. We sold that brand to Neighborly in 2018. But Pool Scouts was the second brand, which was officially born in 2016. I came on board in 2015 to.
00:06:17 Help build the brand. We made a small acquisition and really built out the franchise disclosure document, the.
00:06:24 Team of people that were going to support franchisees.
00:06:26 So we launched the business with a small acquisition and franchised at the same time, uh, which was challenging, uh, to.
00:06:33 Say the least, but certainly lots of fun. And it's been a great ride. We have an unbelievable culture and, company here at Buzz.
00:06:40 Franchise Brands. Four brands in total, including Pool Scouts, obviously, Home Clean Heroes, British Swim School, which is our biggest brand.
00:06:49 That we acquired in 2019, and a new brand that we just launched last year called Grand Illuminations, which is in a holiday lighting business.
00:06:56 So been really fortunate to be part.
00:06:58 Of a growing culture, a culture and company that has won a number of awards for best places to work, uh, and just a fabulous group of people.
00:07:09 Around me love it. So let's dive in to pool scouts. Specifically, what is pool scouts? For those listening that don't know nothing about franchising or about pool scouts?
00:07:22 Yeah. Pool scouts. The way I like to describe it.
00:07:26 Is what we do is we focus on residential swimming pools and cleaning, maintaining, and, doing some repair work at residential swimming pools.
00:07:36 It's not a sexy business, but there are components of it to me, that.
00:07:40 Makes it make it a super sexy business.
00:07:42 Number one, we know exactly who our target customers are. We build our territories for franchisees around single family homes with in ground pools.
00:07:51 In the backyards with incomes above a certain threshold.
00:07:54 And we protect those territories for the.
00:07:56 Franchisees by zip code.
00:07:58 So you know exactly what your turf is and who you're targeting within that turf. That's one of the really attractive things. The other thing to me is we are a recurring service. Last year, we averaged 18 services per.
00:08:09 Customer across the entire country, despite the.
00:08:12 Fact that almost 60% of our customers.
00:08:15 Were brand new to Pool Scouts.
00:08:17 we have averaged over $1,300 a.
00:08:20 Customer last year across the entire franchise system.
00:08:23 So this predictability and knowing what we.
00:08:26 Do and that nature of recurring service, is really sexy about our business.
00:08:31 So those are the things that we do and how we focus. And of course, being such a focused effort on who our customers are allows us to really have a laser focus.
00:08:42 When it comes to customer acquisition and building our brand within the residential pool owner community.
00:08:48 Love it. So, how many franchisees or territories do you have, open these days? Roughly, yeah.
00:08:54 So we have 46 franchisees across the.
00:08:57 Country, which include 112 territories.
00:09:02 about 75 of those are open.
00:09:04 We just are opening some last week and this week, and we are.
00:09:07 In 18 different states lands. So we're across the country in both seasonal,, and year round markets. So we're just opening up in Chicago.
00:09:18 Our first franchisee in Illinois. We're in Detroit. We're in Boise. Idaho. We're in Connecticut, we're in Arizona.
00:09:24 Florida. Texas. Markets that are certainly year round, and.
00:09:27 Then multiple other states around the country as well.
00:09:31 so we're in those seasonal where we open pools, service them throughout the course of the season, and close them.
00:09:38 As well as year round, 52 weekly year type markets.
00:09:42 I was just going to ask that question. I have quite a few clients. I'm a franchise broker, and I have quite a few clients on a regular basis for all kinds of brands. Ask the question, well, isn't that seasonal? And so, in this case, obviously in the winter states, I live in Vegas, so our winter is pretty mild, although it did snow not too long ago. My pool is open all year round. So how do you handle that? And, uh, what do you tell people about that part?
00:10:15 Yeah, it's a great question.
00:10:16 We have certainly, franchisees.
00:10:20 As an.
00:10:21 Example in Connecticut or Boise or Detroit.
00:10:25 Where they have idle months of business.
00:10:28 Those months are November, December, January, February kind of are the months.
00:10:34 The season is always longer than everybody.
00:10:36 Expects it to be.
00:10:37 Always, always across the entire country. It's like, oh, everybody closes their pool in September and opens their pool in.
00:10:44 May, is what people intend to say.
00:10:46 Not true at all.
00:10:47 Right.
00:10:48 Our corporate location that we own is.
00:10:50 In Virginia Beach, Virginia.
00:10:51 we have four seasons, and we do get snow here. we'll open over 400 pools and close the same number. But we'll also service ten to 15%.
00:11:03 Of our database will be year round customers as well.
00:11:07 in even markets, like I was.
00:11:09 Mentioning in Connecticut, we're closing pools still in November, and starting to open pools in some cases in March or early April.
00:11:16 So during those idle months, the franchisees take a break. they get a lot of revenue in the bookends of business in the seasonal markets. What I mean by that, Lance, is we do openings and then closings. Those are large ticket, items. Average opening is about $400 around the country. Same thing with a closing, right?
00:11:39 So you get those big ticket items.
00:11:41 But you also get a great opportunity to acquire new customers during those opening.
00:11:46 And closing seasons, and then convert them, obviously, into regular recurring service.
00:11:51 The other nice thing is, once we've done an opening or a closing, we.
00:11:54 Can schedule it and route it effectively the next season. so there's a lot of efficiency that's derived out of,, those businesses.
00:12:03 We've noticed that our customer values in both the year round and the seasonal.
00:12:07 Markets, are very similar, even though there's four months of idle time. Just capturing a lot more value per service. At the end of the day, too.
00:12:16 I was doing some quick math when you were going through the averages and openings and closings. Sounds like even if I was in Michigan or Minnesota, I'm, going to have the same revenue in a lot of cases as, being in Florida.
00:12:33 It is true. Actually, the cost per service in Florida.
00:12:36 In many cases, a lot lower. Pools are a lot smaller generally, but they're also right on top of each other. So we have a number of franchisees in Florida that literally pull up on one street and service five pools without getting out of the,, moving the car.
00:12:50 I love it.
00:12:51 So the density in those year rounds.
00:12:54 Markets, especially in Florida, is completely different. But you're right, uh, the revenue per service makes up for a lot of the seasonality components.
00:13:03 I have to ask about your secret sauce. So a lot of people ask me, what is so special about that brand? Fill in the blank. It doesn't have to be just pool scouts. But there are a lot of people that I meet that say, well, why would I buy a franchise of that or invest in a franchise like that when I could do it myself?
00:13:28 It's a great question.
00:13:29 I know the answer. I can't wait for you to share that with the audience.
00:13:33 Well, there are about 56,000 pool service companies in America. And the lion's share of the competition.
00:13:40 We have are really mom and pop type businesses.
00:13:44 A, single person in a vehicle.
00:13:47 Limiting their opportunities for growth.
00:13:50 So we start with branding. Po scouts is recognized around the country where we're servicing in those 18 different states.
00:13:58 We do a ton to kind of get our brand out there.
00:14:02 We are a premium service, Lance. We are never going to be the cheapest service.
00:14:06 We'll never chase people to the bottom, uh, as far as price goes.
00:14:11 So what does that mean? Well, in our case, we talk about the branding, but we talk about a.
00:14:15 Higher level of professionalism.
00:14:17 We mandate background checks on all of.
00:14:20 The technicians that are out there in the field. They're showing up in branded shirts, branded vehicles.
00:14:24 They're licensed insured bonded. And then we provide just better tools, candidly. We text our customers, let them know we're on the way there.
00:14:33 We take before and after pictures with.
00:14:35 All the readings of the chemistry of.
00:14:37 What we've done, at the pool.
00:14:38 We provide them with constant communication that translates into systems that enable scaling the business quickly for the franchisee, communicating really.
00:14:49 Well with the customer, understanding marketing ease.
00:14:53 And accepting any sort of payment.
00:14:56 monitoring, not promoter score.
00:14:58 There's so many different tools that we use to just provide a higher level of professionalism. In a business that historically has not.
00:15:06 Been considered the most professional you think of.
00:15:10 The pool guy doesn't conjure up the most, professional, image in a lot of people's minds, and we really have set out.
00:15:20 To change that and have done so. Our customer acquisition numbers have been fabulous.
00:15:25 The pool business itself Lance over the past two years has been unbelievable. COVID was, crazy. The Pandemic really pushed people to spend more time at their homes than ever, and spend more money on their homes than ever. That led to pool growth across the country at over 24% per year for the last two years. Unprecedented. Never been like that. Now you have all these pools that.
00:15:50 Have been built all around the country that need us to come out there and clean, maintain, and repair.
00:15:56 So it's been a good time. We've grown a lot. We had 68% growth last year.
00:16:01 We're expecting similar growth numbers this year.
00:16:04 We've done that through organic growth with existing franchisees and territories, as well as last year.
00:16:10 We launched 17 new franchisees as an example.
00:16:13 Sounds like tremendous growth. Talk a little bit about the net promoter score. A lot of people don't necessarily know what Net Promoter Score is, but it's all about customer service. so share a little bit about that.
00:16:27 Yeah, to start out with, the,
00:16:29 NPS as we call it, is a.
00:16:31 Really simple survey that a lot of companies use to just benchmark and understand how do your customers feel about you. And so it's a raise from one to ten. Would you refer us to a friend or family? And then simple comments. We keep track of that across our entire franchise system. I am super proud to say we finished last year 2022 with an NPS of, uh, 80. Our current NPS year to date is 85. And that is, once again, despite the fact last year that we launched 17 new franchisees that were brand new to the business, servicing brand new customers for the first time. That's the most challenging visit that we have, or service that we have, is.
00:17:14 The first time we go out to service a pool.
00:17:16 I like to describe it as we'll have a great investigative conversation with the prospective customer, and then we book the job. And then we do our best to ask as many questions so that the technicians don't go into the backyard like this. But even so, the third time they clean or maintain that pool, they know it really well. And so those first services are by.
00:17:38 Far the most difficult.
00:17:39 And an 85 NPS is really unprecedented.
00:17:43 It's something that I'm super proud of.
00:17:45 Our franchisees get it. they keep track of it, and.
00:17:49 They are, passionate.
00:17:50 It's a very strong leading indication of.
00:17:53 The health of a business.
00:17:55 Yeah, and a high net promoter score. Some of the best companies in the entire world, have this really high net promoter score, like you. So it's obviously quite impressive. I have to go back to I was Chuckling, as you were talking really about professionalism, or some of the, you didn't say it, but I'll say it. The non franchise, pool type companies. my pool guy, Eric, if you're listening? You, should take some notes from Pool Scouts. Eric was referred by a family friend. We have no idea what day of the week Eric even comes anymore. He'll shoot us a text saying, I'll be there today, I'll be there tomorrow, be there three days from now. We don't know. He leaves the pool deck,a mess after he's done cleaning things. And then when I saw pool scouts commercial and saw that the gentleman had, in the branded shirt had the leaf blower and he was cleaning up and like you said, sending reports, we have no idea. Eric could be there three minutes. We have no idea what he did or what the result was. Unless, of course, something's broken. Then we're going to know.
00:19:12 The opportunity to stand out is really material. And, we talk about making our customers days.
00:19:20 Lots of companies, especially service companies, talk about that.
00:19:23 But we try and look for ways.
00:19:25 To bring in the trash cans, put the paper on the front stoop, pick up the towels and toys that are around the pool and put them away.
00:19:35 Something that might take two or three minutes to do, and they may or may not notice it, but really just going that extra mile now, we're charging a premium service price. And so we set high expectations across the franchise system.
00:19:49 And our franchisees, they get it.
00:19:51 They understand that, and they translate that to the culture of their independent franchise so that they can make sure that.
00:19:58 People get it and are willing to go the extra mile.
00:20:02 So it's something that, we walk and talk with, and it's translated into great customer acquisition.
00:20:07 Last year.
00:20:08 20% of those customers that I mentioned.
00:20:11 That we acquired last year came from.
00:20:13 Referrals least expensive cost, for acquisition.
00:20:17 And more likely to look exactly like the customer that was referring them from a spend and value standpoint.
00:20:24 Uso I think when you get.
00:20:26 True proponents of your brand that are.
00:20:28 Willing to pass on your name to.
00:20:30 Somebody else, that's a true sign of the health of not only your brand, but your location. And we've just had great success, and.
00:20:38 That'S ultimately a testament to our franchisees. They're good people that want to create a long term successful business, and they.
00:20:48 Know that treating people well is the way to do that.
00:20:51 I call it just literally do what you say you're going to do, and.
00:20:55 You'Ve already set yourself apart, uh, from the competition.
00:20:59 I think that is absolutely fantastic. So, investment, we touched on territories. How big is a territory? What is the investment for a single territory? Do people own more than one territory? Let's talk about that.
00:21:14 Yeah. Great. Well, let's start with the definition of a territory in our business. It's those single family homes. And it's up to 10,000 target households that are single family homes with in.
00:21:26 Ground pools in the backyard and incomes.
00:21:29 Above $100,000 and so that's really a laser focus. As our candidates in franchise development get more interested, they get to see the maps of the territories, which include the.
00:21:41 Number of target households by zip code.
00:21:44 And of course, it makes a ton.
00:21:45 More sense to them, even though I look at maps all day long, because.
00:21:48 They understand neighborhoods and streets and thoroughfares.
00:21:52 That make even more sense for driving route efficiency.
00:21:55 To get started in our business, many.
00:21:57 Of our franchisees launch this business from their home.
00:22:00 It scales by this way, Lance.
00:22:02 Number one, you start out with zero.
00:22:05 Customers in most cases. And so we do a lot to.
00:22:08 Get the phone to ring and build that customer base.
00:22:11 And as the business builds, so do the number of vehicles and technicians. So, really, two key roles to run the business an office manager, which is.
00:22:20 Often played by the franchisee, and then technicians.
00:22:23 And as the business grows, so does.
00:22:24 The number of technicians. The number of vehicles to get started in a single territory is about $111,000. What we represent, uh, in our item seven, as it's called, and that includes, um, cash reserves. It includes upfront investment in the territory, fee, vehicle expenses for leases, equipment purchases, insurance, and multitude of other things.
00:22:48 But it's a relatively low cost investment. The reason behind that, Lance, is we.
00:22:53 Don'T require commercial real estate for our business.
00:22:55 Our mature franchisees that have ten to.
00:22:59 15 vehicles on the road, they have.
00:23:01 A small warehouse, a place to park.
00:23:02 Vehicles, and a place to store chemicals.
00:23:05 But the work of the office can.
00:23:06 Be done virtually anywhere.
00:23:08 so that's something that really sets.
00:23:10 Apart from an investment perspective without that need for the commercial real estate side of things.
00:23:16 Wonderful. So, I'm going to say something. A lot of your franchise development folks here all the time, but I don't know anything about the pool business. Does anybody know anything about the pool business before they really get in? Other than the fact that they like to put on swim trunks and jump in one on a hot day?
00:23:38 out of our 46 franchisees, we've.
00:23:40 Had one that came from the pool business. The conversion of an existing,, pool business into a Pool Scouts franchise.
00:23:46 We have on our incredible team here.
00:23:49 At Pool Scouts, we have three full.
00:23:51 Time technical experts that what they do.
00:23:54 Is train and support our franchisees on the technical side of the business, the.
00:23:58 Pool side, we teach it. We've got labs here in our office.
00:24:02 Where we teach everything about equipment flow, chemistry, automation, et cetera, et cetera.
00:24:08 And then we're out in the field supporting franchisees.
00:24:10 So we're not just sitting here behind a spreadsheet telling people what to do.
00:24:14 Uwe provide both traditional business coaching through our franchise business coaches, and then.
00:24:20 Technical support with our technical team. so they don't need to have pool experience. We teach that we do a lot from a marketing perspective across all of us franchise brands, and certainly around Pool.
00:24:32 Scouts to get the phone to ring.
00:24:35 We do direct mail. We manage those programs in house for the franchisees targeting those specific households. Uh, we do all of their search, uh, engine optimization and website. Uh, we facilitate the paid side of digital.
00:24:48 And then we've got a creative team.
00:24:50 Here that helps create local campaigns for the community oriented marketing that franchisees do.
00:24:57 So , we're doing a lot, I.
00:24:59 Always like to call it, we have an agency behind our franchisees that doesn't just come up with creative 50 sayings.
00:25:06 But actually does stuff to get the phone to ring. And then we provide tremendous amount of data to support and uh, show what franchisees, what's working and what's not working.
00:25:17 And how do we make decisions based on data.
00:25:19 It's one of our core values. , as a business.
00:25:23 We call it acting with purpose. We're always trying to bring data into the decision making process.
00:25:28 So if you were going to look at your top 10% of best franchisees, you don't have to name them.
00:25:37 Yeah.
00:25:38 ,but where did they come from? What did they do before joining Pool Scouts?
00:25:43 It's a great question. And one of the things I.
00:25:45 Love about franchising, and I'm sure you'll.
00:25:47 Appreciate this, Lance, is that they come from different backgrounds.
00:25:50 Our top franchisee is actually the first franchisee that we signed for Pool Scouts back in 2016. And Tiffany Console is, a rock star. She has two territories in her business in the Raleigh Durham, North Carolina. Both of those territories did over a million dollars in revenue in 2020.
00:26:07 A million dollars in a territory over a million dollars.
00:26:13 and she , actually comes from.
00:26:15 A human resources and retail background.
00:26:18 She used to run Rei stores and also worked corporately for Rei. And uh, she's got fabulous people skills that translate both to the employee side of things and also to the customer side of things.
00:26:31 And she's built an incredible business. Other franchisees, we've got veterans in our.
00:26:37 System that have been great out of the gate. We love veterans, we're in a military town here and a number of the staff and team and buzz franchise brands have military backgrounds as well.
00:26:49 we have an attorney who runs.
00:26:51 A fabulous business in Hilton Head and Charleston. Gentleman named Ray Marinaccio Love his story. Came from New York City, was a prosecutor there and moved down to Hilton Head and opened up Pool Scouts franchise. Andis just always leading in customer acquisition and just a fabulous people, uskills once again. And super smart, ah, obviously.
00:27:13 And there's a lot of moving parts, so I always say the top parts, top franchisees, they're able to juggle a.
00:27:19 Lot of things moving around. And particularl, good on the people side of things.
00:27:24 We've got great systems, as most franchise.
00:27:27 Systems do, to manage the overall operations of the business. But uh, commonality there people skills and the ability to juggle a lot of things at one time.
00:27:36 I love the diversification of those top owners, which is phenomenal. let's talk about those systems. So let's talk about training though. first, what does the training look like? Because an attorney, a prosecuting attorney from New York, before he convicts anybody no, I'm just kidding. What does that look like? Do you allow semi absentee ownership where people are hiring a team? Or do you have owner operators?
00:28:08 Yeah, mostly owner operators, Lance. I think all of our franchisees,not all, but a lot of them.
00:28:13 Aspire to be a semia absentee owner in the future. And certainly some of our franchisees have built up layers in their organization that allow them a lot more freedom with regards to their time.
00:28:23 Uwith regards to training, we really.
00:28:26 Have two sides of training in our business. We have the business side of things and we have the technical side.
00:28:32 The technical side is hands on in.
00:28:35 The field or in our labs or our classroom type thing, turning wrenches or out there doing the work of cleaning and maintaining swimming pools.
00:28:44 And the business side includes everything from.
00:28:47 All the systems that we use. sales, marketing, budgeting, inventory, maintenance, or management, et cetera and so we provide both sides of the training. Uwe also require franchisees out of the gate to do what we call a certified pool operator, a CPO course to get ah, them kind of basic level knowledge on that.
00:29:08 But I would say that our training is perpetual. Last year we had two towards the end of the year.
00:29:14 This year we'll do five technical training classes that teach people much more advanced repair work.
00:29:21 And we do those in different regions.
00:29:23 Around the country so that franchisees can bring their technicians to those, types of training. And then we partner with uh, the.
00:29:29 Big three in our business, or three.
00:29:31 Companies that make the lion share pool equipment, to partner with them to get training opportunities for franchisees and technicians around the country as well.
00:29:40 So, training is 100% ongoing. And then the final piece I mentioned, those three folks that we have here for the technical side, they provide the just in time training. And that could be literally with FaceTime or Google Hangouts and hey, what's that noise? Hey, look at this pool. How do I do this, how do I do that?
00:29:58 And so they provide that level of support to franchisees and technicians around the country as well.
00:30:03 Great, so run us through your process. Obviously, you're either going to get somebody that Googles and finds you as a great opportunity, they're going to come through a broker like myself, where I'm going to think pool scouts is obviously a great fit for somebody. And then as they. Get through your process. They have a first phone call, talk about Discovery Day, Meet the Team Day, whatever uh, you're calling it. Everybody's a little different. Validation.
00:30:30 Yeah, it's a great question. We have the same franchise development.
00:30:34 Process and we call it a journey, obviously, but I think we have the same process across all of our brands.
00:30:40 So we get an introduction to a.
00:30:43 Lead, whether it's through a broker like you, or through organic sources, and we do both.
00:30:49 we take them M all through the same process. In that process, we have a franchise.
00:30:53 Development team here at Buzz franchise brands with five professionals, five executives that uh.
00:31:00 Work the different leads and they bring.
00:31:02 Everybody through the same process.
00:31:03 The process includes introduction, a little bit.
00:31:06 Of, understanding of the why behind what a candidate is looking for, is.
00:31:10 Interested in, and then we bring them.
00:31:12 Through a series of videos. Those videos include an introductory video for what I do and then we.
00:31:19 Walk through operations and marketing a financial.
00:31:23 Claims, video that we do as well. And all throughout the process, the interactive process with the franchise development executive. And when we're working with the consultant, obviously we call the Frick and Frack, the back and forth with the consultant so that everybody's on the same page as well. That u culminates with a Meet the Team day.
00:31:42 We like to have meet the Team.
00:31:43 Days here physically at our offices in Virginia Beach, where we get a chance to meet and break bread with the franchise candidate and get a chance for them to see everybody here who would be supporting them and for us to get a chance to know them.
00:31:57 Our franchise disclosure document is a ten year contract. So when someone signs up franchise agreements, ten years is a big relationship. I like it to call it a marriage and you want both parties.
00:32:07 To be super excited to get into that marriage.
00:32:09 So that face to face meet the.
00:32:11 Team Day, really is around making sure the fit is great for both and then we proceed accordingly. If it's a great fit for both, then we move on to the next phase of getting franchise agreements signed and everything that happens there.
00:32:25 But that's our process. Very interactive, and it's really a.
00:32:30 Self paced with the franchise candidates, so they can be patient as they go through it.
00:32:35 We know in many cases they're comparing two or three or four brands to.
00:32:40 What we do and we want them to be as excited about pool scouts as we are to have them into the family as well.
00:32:48 So what about your, do you have a validation process where existing candidates.
00:32:53 Yeah, pretty early on, pretty early on, we hand out the list, uh, of.
00:33:00 All of our franchisees and say, yeah, call away we might tell them they can call anybody.
00:33:06 if they're going to be opening.
00:33:08 A franchise in Austin, well, maybe they want to talk to franchises that are in and around the Austin area or the Texas area. That's going to be a similar market. But inevitably, we hand the list and we're very transparent about the validation process. We welcome it. Uit's a good thing we have monthly validation calls with candidates as well. With franchisees where we'll set it up.
00:33:32 We're not on the call.
00:33:33 They can have an open conversation with, the franchisees as well. So, like I said, we have to be 100% transparent about that. The validation process is a huge portion of bringing the right partners in from.
00:33:46 A franchise perspective, I think that's absolutely fantastic. So Michael, final thoughts, final words of wisdom? You've shared a lot of great stuff.
00:33:56 Well, thank you, Lance. I appreciate it. We have a brand promise and it's perfect pools Scouts honor. And really, that culminates our professionalism of.
00:34:08 what we're delivering.
00:34:10 The business model, like I said, in.
00:34:12 The case of Pool Scouts, is about recurring service and being in people's backyards on a regular basis and building up that efficiency as you build more customers, tighter routes, build the brand, et cetera.
00:34:26 It is 100% a journey.
00:34:28 it has been unbelievably fun to be a part of helping build this brand across the country.
00:34:35 We've had unbelievable success over the past.
00:34:38 Couple of years and our prospects for 2023 are great.
00:34:42 And we're looking for the right partners.
00:34:43 That want to come join the, Pool Scouts family.
00:34:47 And you have a lot of territory left to cover.
00:34:50 We do. We certainly do. Lots of great areas are available around the country. Very transparent process to see what those.
00:34:58 Territories look like and visualize them and, easy to learn about, the business model as well.
00:35:05 Awesome. Well, Michael, you have been fabulous talking about pool scouts. Michael Wagner, president of the brand. Thank you so much for being here.
00:35:14 Thank you very much, Lance. I really enjoyed it.
00:35:17 Talk to you soon.
00:35:18 Thank you very much for listening today. Please, like, follow and subscribe. This is Lance Graulic. Until next time.