The Picklr Problem: Unlawful Earnings Claims, Franchisee Struggles, and a Franchise Fantasy
When a franchise claims explosive growth, bold profitability, and industry-defying margins, savvy prospective franchisees should ask one question: “Where’s the proof?”
In the case of The Picklr, a “rapidly expanding” indoor pickleball franchise with allegedly hundreds of units sold in less than two years, the proof doesn’t just fall short, it appears to violate federal franchise law.
📣 Big Claims, No Backing
In a January 4, 2024 press release, The Picklr publicly declared:
“In the second half of 2023, The Picklr saw revenue grow by 144%, which includes a 292% increase in new members and with the top performing clubs delivering an average unit volume (AUV) of nearly $1,200,000 on a 42% EBITDA.”
At the time of this release, The Picklr was operating under its 2023 Franchise Disclosure Document (FDD). Item 19 of that FDD was blank, meaning the franchisor was legally prohibited from making any financial performance representations.
According to the FTC Franchise Rule (16 C.F.R. § 436.5(s)), franchisors may not make any earnings claims; including AUVs, breakeven estimates, or profit margins; unless that data is explicitly disclosed in Item 19.
When The Picklr issued its next FDD in February 2024, Item 19 included performance data that sharply contradicted the PR spin:
No segmentation was provided for "top performing clubs." FTC rules prohibit selectively promoting earnings from a subgroup unless that same breakout appears in Item 19.
Average Unit Volume (AUV) was disclosed as $601,346, barely half the $1.2 million figure claimed.
EBITDA represents 25.5%, not the 42% touted. Even this figure was assembled from a 7-month and 5-month split, likely to present performance more favorably.
That 25.5% EBITDA margin excluded franchise-related costs like royalties and fees. FTC guidance requires those costs be included when reporting affiliate-owned location performance. If included, margins would likely fall below 20%, not rise above 40%.
In plain terms: the 42% EBITDA quoted in the press release was exaggerated and not legally disclosed, making it an unlawful representation. These misrepresentations weren’t just careless; they appear designed to inflate perceived unit profitability. And if these are the tactics being used in public, it raises a serious question:
What promises are being made privately in the franchise sales process to fuel such rapid expansion?
📰 Ongoing Violations
Even after releasing a 2025 FDD with no Item 19 disclosure, executives continued making public earnings claims. A July 2025 LinkedIn post by a Picklr executive states:
"We open with 250 members which comfortably covers overhead."
This is a financial performance representation. And it doesn’t hold up to scrutiny:
250 members × ~$100/month = $25,000 monthly revenue (at best)
Facility size: 18,000 to 30,000 sq ft (per FDD)
Rent, labor, royalties, and insurance would likely exceed that figure in most jurisdictions.
The claim is not only unlawful, it's financially misleading.
📈 Item 20: The Growth Doesn’t Match the Hype
The Picklr’s 2025 FDD shows:
22 franchised outlets open by end of 2024
Company-owned outlets dropped from 6 to 2 (four sold to a franchisee)
56 signed franchise agreements with outlets not yet open
45 projected openings in 2025
0 planned corporate locations to open in 2025
This contradicts public claims of 300+ franchises sold and 92 under contract as well as the CEO’s claim of “more than 40 club openings.” The franchisor’s growth narrative is not supported by the required legal disclosures.
🤷 Franchisees Are Feeling the Pain
Reddit discussions and anecdotal feedback suggest:
Clubs struggling to reach breakeven
Members playing less than 2x/week
Revenue-per-court metrics falling short
Some franchisees report $81,000/month in revenue across 9 courts, or ~$9,000 per court. With monthly memberships around $90, the math doesn’t work without a high-volume, high-retention model, something Picklr hasn’t proven.
📅 Series B Funding: A Valuation Mirage?
In June 2024, The Picklr announced a $59 million valuation and $9 million raised in a Series B round led by Pickleball Inc. Media coverage quoted executives touting:
"300+ franchises sold"
"92 under contract"
"1,080 courts by end of 2025"
Yet, the 2025 FDD shows only 22 franchised locations open and 56 franchise agreements signed with outlets unopened. The franchisor is offloading corporate outlets, selling 66% of their units in 2024 alone with just 2 outlets remaining. There is no mention of 92 under contract or support for the 1,080 court claim.
🛑 Bottom Line
The Picklr appears to be:
Making earnings claims without compliant Item 19 disclosures
Promoting a growth story unsupported by its FDDs
Leaving franchisees exposed to unsustainable economics
Prospective franchisees should demand:
Current and past FDDs (especially Items 7, 19, 20)
Direct conversations with operating franchisees
Proof of earnings claims beyond PR headlines
Because in franchising, when the press releases don’t match the legal documents, it’s usually the franchisees who pay the price.
The information presented in this blog post is for educational and informational purposes only. While every effort has been made to ensure the accuracy of the content, Franchise Reality Check™ makes no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability, or availability of any information contained herein. The analysis is based on publicly available documents, including Franchise Disclosure Documents (FDDs), press releases, and online content, as of the date of publication.
Nothing in this article should be construed as legal, financial, or investment advice. Readers are advised to conduct their own due diligence and consult with qualified legal or financial professionals before making any investment decisions or taking any action based on the content.
Franchise Reality Check™ is not affiliated with The Picklr or its affiliates. References to individuals, companies, or legal entities are for commentary and analysis under fair use and public interest protections. All opinions expressed are those of the author and are intended to foster transparency, accountability, and consumer education in franchising.
