APA Continues Franchise Growth

By Bill Rosenberger

It's no secret that Subway is the o­ne of the largest and fastest growing franchises in the United States and around the world, and, according to Entrepreneur.com, they have remained number o­ne o­n their top 500 franchises list since 2001.  The real secret hidden in Entrepreneur.com's rankings is the APA, or the American Poolplayers Association, who again have cracked the top half of the list in 2005.

This year's latest top 500 lists the APA at number 218, which is down from its 163 it received in 2004, but the fact that they've remained in the top half of the list is a testament to what the founders wanted to achieve. 

In 1979, pro billiard players Terry Bell and Larry Hubbart started the National Pool League, which was a national amateur league designed to give pool players the opportunity to play o­n a regular basis.  In 1981, the name officially changed to the APA and has since spread to Canada as the CPA.  The organization's growth propelled them to their highest ranking of 53 in 1998.

What makes the APA so successful?  According to public relations manager Jason Bowman, it's all about the people.  "We try to bring in good people that know about pool and the industry."  It doesn't hurt that franchisees spend six days in training at the home office either.  "The training we do is very significant," adds Bowman. 

Today, there are 252 U.S. and 17 Canadian franchises.  And Bowman says they hardly ever close. 

"We very rarely close a franchise.  What usually happens is someone runs it for ten years, and they retire.  We simply find someone else in that area to take over."

The number of members is even more compelling than the rankings themselves.  There are over 250,000 members in the U.S. and Canada, and they participate in league play in either 8- or 9-ball with the hopes of advancing to the APA National Team Championships.  According to the APA website, over o­ne million dollars in prize money is awarded in different competitions, including the APA 8-Ball National Team Championship, the APA 8-Ball Classic, the APA 9-Ball Shootout, and MiniMania tournaments. 

Along with the national events, the APA also conducts the U.S. Amateur Championship, which is arguably the best amateur tournament in the pool world.  The event started in 1994 and has continued to grow, as amateur players all across the country battle it out for o­ne of the 128 spots. 

Entrepreneur Magazine has rated the APA number o­ne in the categories of Sports-Event Planning and Miscellaneous Recreational Business, two titles they held from 2000-2004.  The year, both categories were dropped, but the APA was a sure bet to have been near the top.

Entrepreneur.com's other rankings include "Top Low-Cost Franchises," "Top 101 Home-based Franchises," and its two-year-old category-"America's Top Global Franchises."  

The APA came in at number 56 when it comes to being a low-cost franchise, down from its number-42 spot that it held in 2003 and 2004.  While they dropped in their ranking, it's tough for a successful franchisee to get a successful business for a low cost. 

"We have a distinct advantage," says Bowman.  "Our people are good people, but they don't have the large capital to start with."    

Franchisees require little capital investment, often ranging from $11,000-15,000, while the average is around $13,000.  None of the franchises are company-owned, and they o­nly require a small staff of two or three.   The APA also offers different contract lengths for the franchisees, allowing them to choose 2-, 5-, or 10-yearcontracts. 

Of all the possible home-based franchises, the APA rings in at number 58, their lowest mark to date but still very commendable.  Their best ranking came in 2002, when they found the thirty-fourth spot.  But, considering who is o­n the list (Lawn Doctor, 14; Vanguard Cleaning Systems, 43), the APA has to be pleased.

"We're very comfortable where we're at, but we're always striving to get better," says Bowman.  "But yes, we're very happy with what we've accomplished.  A lot of our owners are older people-husbands and wives, business partners-and they enjoy working from home."

Finally, the APA was ranked number 161 in "America's Top Global Franchises," which is a stat they are proud of, but also a stat they have worked hard to attain.

"We're part of the IFA [International Franchise Association]," explains Bowman, "and we participate in their meetings and conventions, always looking for ways to get better."

Subway is again the top global franchise, but it's surprising who APA's next-door neighbors are-Hilton Hotels, Suites, and Resorts (156); Howard Johnson International, Inc. (157); and Country Inns & Suites By Carlson (158). 

What's even more amazing is the list of franchises that the APA is ranked over.  Consider these:

In America's Top Global Franchises for 2005, the APA is ranked ahead of Microtel Inns & Suites. 

In the Franchise 500 ranking, the APA comes in at 218, 11 spots ahead of Hilton Hotels, 13 spots ahead of Red Roof Inns, and 73 spots ahead of Play It Again Sports. 

When it comes to the franchises with the lowest start-up costs, the APA rings in at number 56, which is the top 40 % of all the companies listed. 

According to Bowman, the APA has eclipsed the top 500-franchise list the past 15 years, and while he admits they may have already hit their peak, he says they're always looking for ways to grow.

"We have a department o­n franchise development, and they are in discussions about the Asian market.  The popularity of pool is worldwide, and even more so in other countries like Asia.  Efren Reyes is like Michael Jordan over there."

While the franchise rankings change each year, o­ne thing remains constant: The APA is as strong as ever, and its ultimate goal is to reach o­ne million members.  "We want a million," says Bowman. "We're already a quarter of the way there."

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