The Picklr
Initial Investment Range
$1,242,900 to $2,164,300
Franchise Fee
$75,000 to $149,000
Picklr Franchise Inc. is offering franchises for the use of the trademark “THE PICKLR” and related trademarks and service marks and logos (“Marks”) for the operation of a premier indoor pickleball facility and event center, including court reservations, leagues, tournaments, clinics, private/corporate events, pro shop, simple pre-packaged food and beverages (some facilities may sell alcoholic beverages) and services.
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The Picklr April 18, 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.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
Picklr Franchise Inc.'s (Picklr) audited financial statements reveal significant financial distress. They show substantial and increasing net losses over the past two years, a large accumulated deficit, and negative shareholder equity, with liabilities far exceeding assets. This condition, also listed as a "Special Risk" by the franchisor, raises serious questions about their ability to provide long-term support, fund growth, or maintain operations without relying heavily on new franchise fees, posing a major risk to your investment.
Potential Mitigations
- Your accountant must conduct a deep analysis of the financial statements, including the notes, to assess the franchisor's viability and reliance on franchise fees.
- Engage your franchise attorney to investigate the terms of the state-required surety bonds to understand what protections they may offer you.
- A business advisor should help you create financial models that account for the risk of reduced franchisor support or potential system failure.
High Franchisee Turnover
Low Risk
Explanation
The FDD does not indicate a high rate of franchisee turnover through terminations, non-renewals, or other cessations in the past three years. However, high turnover can be a major red flag in a franchise system, often signaling issues with profitability, franchisor support, or the underlying business model. Continuous monitoring of these trends is important for prospective franchisees.
Potential Mitigations
- Asking a significant number of current franchisees about their satisfaction and profitability can provide insight into the system's health; a business advisor can help frame questions.
- Your franchise attorney can help you understand the conditions under which the franchisor can terminate your agreement.
- Reviewing future FDDs for any changes in the Item 20 turnover statistics is a prudent step your accountant can assist with.
Rapid System Growth
High Risk
Explanation
The system is undergoing explosive growth, with 21 new franchised outlets in the last year and 56 more agreements signed but not yet open. This pace, especially for a new franchisor with weak financials, creates a significant risk that its support infrastructure—including training, site selection, and operational guidance—may not be able to keep up. This could lead to inadequate support for you and other new franchisees.
Potential Mitigations
- It is crucial to ask the franchisor about their specific plans for scaling support staff and systems to match this growth, a topic to review with your business advisor.
- Contacting a range of new and established franchisees from the list in Item 20 can help you assess the current quality and responsiveness of franchisor support.
- Your accountant should analyze whether the franchisor's financial statements show sufficient investment in support infrastructure.
New/Unproven Franchise System
High Risk
Explanation
Picklr was formed in February 2023 and began franchising in March 2023, giving it a very limited operating history as a franchisor. This newness, explicitly noted as a "Special Risk" in the FDD, means its business model, support systems, and brand are largely unproven in the franchise context. Investing in such a new system carries higher-than-average risk regarding its long-term viability and ability to effectively support its franchisees.
Potential Mitigations
- A thorough review of the management team's prior experience in franchising and the pickleball industry with a business advisor is critical.
- Your attorney should help you conduct extensive due diligence by speaking with the very first franchisees to understand their early experiences.
- An accountant can assess if the company is sufficiently capitalized to survive the early stages of development despite its limited history.
Possible Fad Business
Medium Risk
Explanation
The business is centered on the rapidly growing sport of pickleball. While currently popular, there is a risk that the intensity of this trend could cool over the 10-year term of your franchise agreement. You should consider the long-term sustainability of a business model tied so closely to a single sport-based trend, as you will still be bound by your contract even if consumer interest wanes.
Potential Mitigations
- A business advisor can help you independently research the long-term market projections for pickleball participation and related industries.
- It's valuable to ask the franchisor about their strategies for innovation and adapting the business model should the sport's growth slow.
- With your financial advisor, assess the business's potential resilience during economic shifts or changes in recreational trends.
Inexperienced Management
Medium Risk
Explanation
While some members of the management team have prior franchise experience (e.g., at F45 Training, Huntington Learning Center), many key personnel listed in Item 2 do not have backgrounds in franchising. For example, the VP of Franchise Operations' prior role was as a Licensed Clinical Social Worker. An executive team with limited direct franchising experience may present challenges in providing the specific support and guidance a franchise system requires.
Potential Mitigations
- It is wise to question the franchisor about how they compensate for gaps in the executive team's franchising experience, perhaps with consultants or advisors.
- A business advisor can help you evaluate the depth and relevance of the entire management team's background.
- Speaking with current franchisees about the quality of support they receive is a practical way to gauge management's effectiveness.
Private Equity Ownership
Low Risk
Explanation
This risk, where a franchise is owned by a private equity firm, was not identified in the FDD. Private equity ownership can sometimes lead to a focus on short-term returns over the long-term health of the system. This can manifest as cuts in franchisee support, increased fees, or a quick sale of the company, which could change the franchise relationship dynamic.
Potential Mitigations
- Your attorney can help you investigate a franchisor's ownership structure to identify any private equity involvement.
- If private equity is involved, a business advisor can help research the firm's history with other franchise brands.
- Reviewing the assignment clause in the Franchise Agreement with your attorney is important to understand what happens if the company is sold.
Non-Disclosure of Parent Company
High Risk
Explanation
The FDD discloses a parent company, Picklr, Inc. However, the financials provided are for the franchisor entity, Picklr Franchise Inc., which is a new and thinly capitalized entity with significant debt and negative equity. While not a disclosure violation, the structure means you are contracting with a financially weak subsidiary, and the financial strength of the parent does not automatically support the franchisor's obligations to you unless there is a specific performance guaranty, which is not provided.
Potential Mitigations
- Your accountant should analyze the financial statements of the franchisor entity itself, without assuming the parent company's resources are available.
- An attorney can clarify whether there are any guarantees from the parent company that would back the franchisor's obligations to you.
- It is wise to ask the franchisor to explain the relationship and flow of funds between the parent and the franchisor entity.
Predecessor History Issues
Low Risk
Explanation
The franchisor discloses two predecessors, The Picklr, LLC and The Picklr 2, LLC, which were merged into the parent company. While these entities are disclosed, the FDD provides limited detail about their specific operating history or performance prior to the merger. This makes it difficult to fully assess the historical context and potential inherited issues of the brand and operating system before they were structured for franchising.
Potential Mitigations
- You should ask the franchisor for more detailed information about the operational and financial history of the predecessor companies.
- In discussions with the earliest employees or partners of the company, if possible, inquire about the business's history under the predecessor entities.
- Your attorney can help you understand the implications of the merger and what liabilities or strengths may have been carried over.
Pattern of Litigation
Low Risk
Explanation
This specific risk was not identified in the FDD package. Item 3 discloses that no litigation information is required to be disclosed. A pattern of litigation, especially claims of fraud or misrepresentation brought by other franchisees, can be a major warning sign of systemic problems. Similarly, a high number of lawsuits initiated by the franchisor against its franchisees might indicate an overly aggressive or difficult relationship.
Potential Mitigations
- Your attorney can conduct independent searches for litigation involving the franchisor that might not have met the criteria for FDD disclosure.
- Asking current and former franchisees about their experiences and any disputes they've had is a crucial part of due diligence.
- It is important to have your attorney review the default and dispute resolution sections of the agreement to understand your rights.
Disclosure & Representation Risks
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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Financial & Fee Risks
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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Legal & Contract Risks
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
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Territory & Competition Risks
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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Purchase the complete risk review to see all 102 risks across all 10 categories.
Regulatory & Compliance Risks
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.
Franchisor Support Risks
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
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Operational Control Risks
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.
Term & Exit Risks
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.
Miscellaneous Risks
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.
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