Pool Cleaner Dives Into Franchising

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When Willan Johnson decided to leave the online business world to start his own swimming pool service company, his friends were surprised.

After all, Johnson had been a longtime executive at Yahoo Inc.’s web search advertising unit – which doesn’t have a thing to do with chlorinated water.

But after departing Yahoo for another Internet company and working to create an online platform to help small businesses, Johnson and two colleagues got interested in the pool business.

His instant realization: the industry of servicing swimming pools is highly fragmented, dominated by small and not very sophisticated moms and pops.

“I wanted to take my experiences and apply them to something as mundane as a pool company,” said Johnson, 47.

So with two partners, he opened VivoPools in late 2009. Through acquisitions and organic growth, Vivo has quickly expanded to serve more than 3,000 residential clients and 400 commercial properties in California, Nevada, Arizona and Florida. The company, headquartered in Monrovia, grossed $5 million last year and employs 100 workers.

Now, the company has decided to franchise its model, which Johnson said offers superior service but at above-average prices. Typical residential pool service in Southern California costs about $90 to $95 a month while Vivo might charge $10 to $20 more.

The company is offering franchisees what they need to get started aside from the truck – including equipment, training and marketing. Initial supplies are provided and future ones can be purchased at a discount from approved vendors. In addition to initial franchise fees of $27,000, the franchisees pay Vivo 7 percent of sales.

Richard Figueroa, who had long owned a pool company in La Canada Flintridge, became the company’s first franchisee in April. He said his customer base has expanded from about 150 to 200 since then.

“It’s like having a big brother,” Figueroa said.

Mitchell Friedlander, chief executive of American Pool Enterprises Inc., a large pool services company in Owings Mills, Md., said the industry is dominated by small companies that may not even follow all codes. He believes there is a demand for more professional companies.

“It doesn’t take much to be in the pool business,” he said. “But today consumers are looking for better quality services.”

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