In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a One Hour Heating & Air Conditioning franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a One Hour Heating & Air Conditioning franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned One Hour Heating & Air Conditioning outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the One Hour Heating & Air Conditioning franchise opportunity

Section V – Presentation and analysis of One Hour Heating & Air Conditioning’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 aggregate, average, median, highest, and lowest gross revenue per territory for the 78 One Hour Heating & Air Conditioning franchisees representing 322 territories that were in operation for the entire 2023 fiscal year (by quartile and overall)

• 2023 aggregate, average, median, highest, and lowest gross revenue for the 78 One Hour Heating & Air Conditioning franchisees representing 322 territories that were in operation for the entire 2023 fiscal year (by quartile and overall)

Section VI – Key ratios, comparables, computations, and analyses for the One Hour Heating & Air Conditioning franchise opportunity (exclusive content for Platinum subscribers)

Section I – One Hour Heating & Air Conditioning Franchise Costs

• One Hour Heating & Air Conditioning franchise costs, based on Item 7 of the company’s 2024 FDD:

• Franchise Fee:  $43,000
• Rent/Lease of Real Estate:  $3,000 to $9,000
• Leasehold Improvements:  $1,000 to $4,000
• Computer, Technology Systems, and Software:  $1,800 to $4,000
• Office Furniture and Equipment:  $1,500 to $4,000
• Machinery, Tools, and Equipment:  $3,000 to $10,000
• Vehicles:  $8,000 to $15,000
• Vehicle Upfitting:  $0 to $5,000
• Signage for Vehicles:  $0 to $8,000
• Office Signage:  $1,000 to $5,000
• Travel Expenses for Initial Training:  $2,500 to $5,000
• Initial Vehicle Inventory:  $2,500 to $8,000
• Insurance:  $4,000 to $8,000
• Start-up Supplies:  $2,500 to $5,000
• Professional Fees and Licensing:  $4,500 to $20,000
• Vehicle Registration Fees:  $2,200 to $4,400
• Decals for Consumer Units:  $300 to $500
• Telephone Services:  $300 to $500
• Personal Tools for Technicians:  $1,000 to $3,000
• Full-Time General Manager / Operations Manager:  $0 to $25,000
• Initial Marketing Funds:  $12,000 to $24,000
• Additional Funds – 3 Months:  $35,000 to $60,000
• Total Estimated One Hour Heating & Air Conditioning Franchise Costs:  $129,100 to $270,400

Section II – One Hour Heating & Air Conditioning’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• One Hour Heating & Air Conditioning’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $43,000

• Royalty Fee:  6% of Gross Revenue or $1,500 per month (the “Minimum Royalty”), whichever is greater

• Brand Fund Contribution:  currently, the contribution is based on your Gross Revenue for the calendar year and is payable according to the following schedule: 1.5% of the first $5,000,000 of Gross Revenue in the then-current calendar year; then 1.25% of Gross Revenue in excess of $5,000,000 and up to $10,000,000 in the then-current calendar year; then 1% of Gross Revenue in excess of $10,000,000 and up to $15,000,000 in the then-current calendar year; then 0.75% of Gross Revenue in excess of $15,000,000 and up to $20,000,000 in the then-current calendar year; then 0% with respect to Gross Revenue in excess of $20,000,000 in the then-current calendar year.

• Local Marketing and/or Cooperative:  One Hour Heating & Air Conditioning recommends, but does not require, that you spend at least 8% to 12% of Gross Revenue annually on Local Marketing. However, if you fail to achieve your Minimum Performance Requirements, One Hour Heating & Air Conditioning may require you to spend at least 8% of Gross Revenue on Local Marketing during each of the following 12 months.

Section III – Number of Franchised and Company-Owned One Hour Heating & Air Conditioning Outlets

Franchised

2021

• Outlets at the Start of the Year:  322
• Outlets at the End of the Year:  341
• Net Change:  +19

2022

• Outlets at the Start of the Year:  341
• Outlets at the End of the Year:  352
• Net Change:  +11

2023

• Outlets at the Start of the Year:  352
• Outlets at the End of the Year:  385
• Net Change:  +33

Company-Owned

2021

• Outlets at the Start of the Year:  33
• Outlets at the End of the Year:  33
• Net Change:  0

2022

• Outlets at the Start of the Year:  33
• Outlets at the End of the Year:  33
• Net Change:  0

2023

• Outlets at the Start of the Year:  33
• Outlets at the End of the Year:  28
• Net Change:  -5

Section IV – News Updates on the One Hour Heating & Air Conditioning Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the One Hour Heating & Air Conditioning Franchise (Item 19, 2024 FDD)

• In this Item 19, the franchisor presents historical information for franchised One Hour Heating & Air Conditioning businesses for the 2023 fiscal year and prior years. As of December 31, 2023, One Hour Heating & Air Conditioning had 95 franchisees operating in 385 Territories.

• Parts 1 and 2 present information on 78 franchisees (representing 322 Territories) that were in operation for the entire 2023 fiscal year.

• Excluded from these tables are 14 franchisees (representing 42 Territories) that opened in 2023 and 9 franchisees (representing 19 Territories) that ceased operations during the 2023 fiscal year. Two franchisees representing 2 Territories in this group operated for less than 13 months, 1 opened in 2022 and closed in 2023, and 1 opened and closed in 2023.

• The tables also exclude 1 franchisee (representing 6 Territories) that did not report revenue in fiscal year 2023 and 2 franchisees (representing 15 Territories) that use a business software system other than Successware and thus did not follow the same reporting procedures as the included franchisees. One Hour Heating & Air Conditioning has no reason to believe the results for this excluded group are atypical, but for data integrity, One Hour Heating & Air Conditioning cannot combine them with results reported via Successware.

Part 1 – Gross Revenue by Territory, by Quartile for the Fiscal Year Ended December 31, 2023

Top 25%

• Number of Franchisees in Group:  20
• Number of Territories in Group:  34
• Aggregate Gross Revenue of Territories in Group:  $114,557,215
• Average Gross Revenue of Territories in Group:  $3,369,330
• Highest Gross Revenue of Territories in Group:  $6,139,974
• Lowest Gross Revenue of Territories in Group:  $2,190,000
• Median Gross Revenue of Territories in Group:  $2,661,559
• Number and Percent of Territories Exceeding Group Average:  15 / 44%

2nd Quartile

• Number of Franchisees in Group:  19
• Number of Territories in Group:  68
• Aggregate Gross Revenue of Territories in Group:  $97,557,985
• Average Gross Revenue of Territories in Group:  $1,434,676
• Highest Gross Revenue of Territories in Group:  $2,030,310
• Lowest Gross Revenue of Territories in Group:  $1,141,498
• Median Gross Revenue of Territories in Group:  $1,537,341
• Number and Percent of Territories Exceeding Group Average:  22 / 32%

3rd Quartile

• Number of Franchisees in Group:  19
• Number of Territories in Group:  129
• Aggregate Gross Revenue of Territories in Group:  $115,543,668
• Average Gross Revenue of Territories in Group:  $895,687
• Highest Gross Revenue of Territories in Group:  $1,125,382
• Lowest Gross Revenue of Territories in Group:  $459,670
• Median Gross Revenue of Territories in Group:  $811,794
• Number and Percent of Territories Exceeding Group Average:  87 / 67%

Bottom 25%

• Number of Franchisees in Group:  20
• Number of Territories in Group:  91
• Aggregate Gross Revenue of Territories in Group:  $16,230,154
• Average Gross Revenue of Territories in Group:  $178,353
• Highest Gross Revenue of Territories in Group:  $425,695
• Lowest Gross Revenue of Territories in Group:  $16,467
• Median Gross Revenue of Territories in Group:  $213,322
• Number and Percent of Territories Exceeding Group Average:  33 / 36%

Totals

• Number of Franchisees in Group:  78
• Number of Territories in Group:  322
• Aggregate Gross Revenue of Territories in Group:  $343,889,022
• Average Gross Revenue of Territories in Group:  $1,067,978
• Highest Gross Revenue of Territories in Group:  $6,139,974
• Lowest Gross Revenue of Territories in Group:  $16,467
• Median Gross Revenue of Territories in Group:  $1,125,382
• Number and Percent of Territories Exceeding Group Average:  164 / 51%

• In some cases, a franchisee may have increased or decreased its number of Territories during the fiscal year. In 2023, one franchisee increased its total number of Territories by 22 during the year. For purposes of the table, One Hour Heating & Air Conditioning includes all of the Territories operated by a franchisee that were operated during any time in the 2023 fiscal year.

Part 2 – Gross Revenue of Franchisees, by Quartile for the Fiscal Year Ended December 31, 2023

Top 25%

• Number of Franchisees in Group:  20
• Number of Territories in Group:  160
• Aggregate Gross Revenue of Franchisees in Group:  $229,441,944
• Average Gross Revenue of Franchisees in Group:  $11,472,097
• Highest Gross Revenue of Franchisees in Group:  $47,266,047
• Lowest Gross Revenue of Franchisees in Group:  $4,756,443
• Median Gross Revenue of Franchisees in Group:  $7,263,899
• Number and Percent of Franchisees Exceeding Group Average:  6 / 30%

2nd Quartile

• Number of Franchisees in Group:  19
• Number of Territories in Group:  46
• Aggregate Gross Revenue of Franchisees in Group:  $67,687,095
• Average Gross Revenue of Franchisees in Group:  $3,562,479
• Highest Gross Revenue of Franchisees in Group:  $4,659,377
• Lowest Gross Revenue of Franchisees in Group:  $2,538,665
• Median Gross Revenue of Franchisees in Group:  $3,424,494
• Number and Percent of Franchisees Exceeding Group Average:  8 / 42%

3rd Quartile

• Number of Franchisees in Group:  19
• Number of Territories in Group:  61
• Aggregate Gross Revenue of Franchisees in Group:  $35,101,871
• Average Gross Revenue of Franchisees in Group:  $1,847,467
• Highest Gross Revenue of Franchisees in Group:  $2,495,113
• Lowest Gross Revenue of Franchisees in Group:  $1,349,735
• Median Gross Revenue of Franchisees in Group:  $1,888,732
• Number and Percent of Franchisees Exceeding Group Average:  11 / 58%

Bottom 25%

• Number of Franchisees in Group:  20
• Number of Territories in Group:  55
• Aggregate Gross Revenue of Franchisees in Group:  $11,658,112
• Average Gross Revenue of Franchisees in Group:  $582,906
• Highest Gross Revenue of Franchisees in Group:  $1,269,398
• Lowest Gross Revenue of Franchisees in Group:  $16,467
• Median Gross Revenue of Franchisees in Group:  $574,962
• Number and Percent of Franchisees Exceeding Group Average:  10 / 50%

Totals

• Number of Franchisees in Group:  78
• Number of Territories in Group:  322
• Aggregate Gross Revenue of Franchisees in Group:  $343,889,022
• Average Gross Revenue of Franchisees in Group:  $4,408,834
• Highest Gross Revenue of Franchisees in Group:  $47,266,047
• Lowest Gross Revenue of Franchisees in Group:  $16,467
• Median Gross Revenue of Franchisees in Group:  $2,495,113
• Number and Percent of Franchisees Exceeding Group Average:  23 / 29%

• The averages reported in the table are per franchisee, not per Territory. “Franchisee” refers to the business entity that signed the Franchise Agreement; some franchisees are under common ownership by the same individual or group of individuals.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance that you will sell as much.

• The financial information One Hour Heating & Air Conditioning utilized in preparing the preceding financial performance representations was based on information reported to it by franchisees.

Section VI – One Hour Heating & Air Conditioning Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️