Ace Pickleball Club Logo

Ace Pickleball Club

Ace Pickleball Club Franchise, LLC
https://www.acepickleballclub.com
1-916-524-2046
33 Mansell Court, Roswell, Georgia 30076

Initial Investment Range

$817,750 to $2,404,850

Franchise Fee

$413,500 to $663,500

We offer franchises for the operation of businesses operating under the “Ace Pickleball Club” name, which provide pickleball courts and pickleball-related activities and services, including open play, memberships, tournaments, and special events, a retail pro-shop, and a café serving grab-and-go food and beverages.

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Ace Pickleball Club April 29, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
4
1
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

Ace Pickleball Club Franchise, LLC (APCF) discloses a precarious financial state. The audited financials in Exhibit F show a net loss exceeding $2.5 million for 2024 and a negative net worth (Member's Deficit) of over $4.3 million. This significant financial weakness, also noted as a Special Risk, raises serious questions about the company's long-term viability and its ability to support you and the rapidly growing system.

Potential Mitigations

  • A franchise accountant should meticulously analyze the audited financial statements, including all footnotes and cash flow statements, to assess the franchisor's viability.
  • It is vital to discuss with your attorney the implications of the parent company's non-binding 'intent' to provide financial support.
  • Your financial advisor should help you weigh the risks of investing with a financially unstable franchisor.
Citations: Item 21, Exhibit F

High Franchisee Turnover

High Risk

Explanation

The data in Item 20 indicates potentially high franchisee turnover for a new system. In 2024, the first year with franchised outlets, nine units opened, but one was reacquired by the franchisor. This represents an 11% turnover rate in the inaugural year, which could be a significant indicator of issues within the system, such as unprofitability or franchisee dissatisfaction. This turnover rate is a considerable risk for a prospective franchisee.

Potential Mitigations

  • Contacting former franchisees from the list in Item 20 is critical to understanding why they left the system; your attorney can help prepare questions.
  • A thorough analysis of the Item 20 tables with your accountant is necessary to calculate and understand the turnover trends.
  • Discuss the specific circumstances of the reacquired franchise with the franchisor, with your business advisor present to evaluate their response.
Citations: Item 20

Rapid System Growth

High Risk

Explanation

APCF's growth appears to be extremely rapid and potentially unsustainable. Item 20 data shows 11 total clubs were operational at the end of 2024, but 37 additional franchise agreements were signed for unopened units. The franchisor's stated plan to open 26 of these in the next fiscal year represents massive expansion, which may strain their limited financial and human resources, potentially leading to inadequate support for you and other franchisees.

Potential Mitigations

  • In discussions with the franchisor, your business advisor can help you probe their specific plans for scaling support infrastructure to match this explosive growth.
  • It is crucial for your accountant to analyze whether the franchisor's financials can support such rapid expansion.
  • Speaking with franchisees who opened recently can provide insight into the current quality of franchisor support during this growth phase.
Citations: Item 20

New/Unproven Franchise System

High Risk

Explanation

APCF is a new and unproven franchisor, having been formed in January 2023 and only beginning to offer franchises in February 2023. This short operating history is explicitly identified by the franchisor as a special risk. Investing in an emerging system carries higher risks, including the potential for an unrefined business model, underdeveloped support systems, and minimal brand recognition, all of which could impact your success.

Potential Mitigations

  • Your business advisor should help you conduct extensive due diligence on the long-term viability of the business model.
  • An accountant's review of the capitalization and financial stability is crucial, especially for a new system.
  • Engaging a franchise attorney to negotiate more protective terms in the agreement may help offset the heightened risk.
Citations: Items 1, 2, 20, 21

Possible Fad Business

Medium Risk

Explanation

The business is centered entirely on pickleball, a sport that has seen a rapid surge in popularity. While currently thriving, there is a risk that its popularity could plateau or decline, potentially making the business a 'fad'. As an investor, you must consider the long-term sustainability of a business model that is dependent on a single, trendy recreational activity. Your contractual obligations will continue even if public interest wanes.

Potential Mitigations

  • Your business advisor can help you research the long-term market projections for the pickleball industry.
  • Inquire with the franchisor about their strategies for innovation and diversification to maintain relevance beyond the current trend.
  • A financial advisor should help you assess the risk of a trend-based business model in your investment portfolio.
Citations: Item 1

Inexperienced Management

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 2 indicates that the franchisor's management team has prior experience in the franchise industry at companies like Sky Zone and Oakscale. Inexperienced leadership can pose a risk because it may lead to poor strategic decisions and inadequate support systems for franchisees. However, the management team here appears to have relevant franchising backgrounds.

Potential Mitigations

  • It is still wise to discuss the specific roles and franchising track records of each executive with your business advisor.
  • Confirming with existing franchisees their opinion of management's competence and responsiveness is a valuable due diligence step.
  • Your attorney can help you investigate the past performance of other franchise systems the management team has been involved with.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD Package. There is no disclosure in Item 1 to suggest that the franchisor is owned or controlled by a private equity firm. When PE firms own franchisors, they may prioritize short-term returns over the long-term health of the system, which can be a significant risk for franchisees.

Potential Mitigations

  • A business advisor can help you research the ownership structure of any franchise system you consider.
  • Your attorney should always review Item 1 and any related corporate documents to confirm who controls the franchisor.
  • If PE ownership were present, asking existing franchisees about changes since the acquisition would be a key diligence step.
Citations: Not applicable

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD Package. APCF clearly discloses its parent company, Ace Pickleball Club, LLC, in Item 1. Furthermore, the parent's intent to provide financial support is noted in the financial statement footnotes. Failing to disclose a parent company can obscure the true financial backing and control structure of a franchise, which is a significant issue.

Potential Mitigations

  • Your attorney should always verify the corporate structure disclosed in Item 1 to ensure all parent and affiliate entities are listed.
  • An accountant can help determine if parent company financial statements should have been included based on FTC rules, especially if the parent provides guarantees.
  • Investigating the history and reputation of the parent company with your business advisor provides a more complete risk picture.
Citations: Item 1, Exhibit F

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD Package. APCF is a new company and does not list any predecessors in Item 1. When a franchisor has predecessors, it is important to scrutinize their history for issues like litigation, bankruptcy, or high franchisee turnover, as these can indicate inherited problems within the system.

Potential Mitigations

  • Your attorney should always review Item 1 carefully for any mention of predecessors.
  • If predecessors exist, a business advisor can help you research their history and reputation independently.
  • Speaking with long-term franchisees who operated under a predecessor is crucial for understanding the system's history.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 3 states that no litigation information is required to be disclosed. A pattern of lawsuits, particularly those initiated by franchisees alleging fraud or misrepresentation, can be a major red flag indicating systemic problems with a franchisor's practices or business model.

Potential Mitigations

  • Even with no disclosed litigation, your attorney can perform public records searches to see if any lawsuits exist.
  • It is prudent to ask current and former franchisees about their experiences and if they are aware of any disputes.
  • A business advisor can help you research online forums and news articles for any reports of franchisee dissatisfaction.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
6
2
7

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
1
7
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
9
2
5

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
2
1
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
5
3
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
1
3
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
4
6
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
7
8
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.