Aire-Master Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$45,434 - $171,400
Franchise Fee
$27,000
Total US Locations
122
Business Summary
Aire-Master provides odor control, scent branding, and commercial hygiene services, including scheduled restroom cleaning and servicing of deodorizing and product dispensing equipment. Aire-Master manufactures the products used in its system and offers franchises for this odor control and cleaning business. The typical customers for an Aire-Master franchise are commercial businesses such as hospitals, clinics, doctor's offices, adult care facilities, apartments, hotels, office buildings, amusement parks, daycares, restaurants, and retail outlets.
Corporate History
Aire-Master of America, Inc. was incorporated in Missouri on August 27, 1976. The company acquired the assets and operations of its predecessor, Jerry P. McCauley, who had operated as a sole proprietorship under the name Aire-Master Company since 1966. Aire-Master of America, Inc. has continued to operate the odor control, scent branding, and commercial hygiene systems business since 1977. The company first began offering and granting franchises for these systems in 1977. In addition to franchising, Aire-Master manufactures and markets odor control and cleaning products under the trademark "EsScents" through non-franchisee distributors, and also produces various private-label products for third parties.
Financial Overview
Investment Range
$45,434 - $171,400
Franchise Fee (Low)
$27,000
Franchise Fee (High)
$100,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$3,500
Equipment Costs (High)
$20,250
Working Capital
$4,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Aire-Master appears to be in a strong financial position, showing substantial working capital of over $4.9 million in 2023 and positive cash flow from operating activities, which significantly improved to over $965,000 in 2023. Although its net earnings and total revenue experienced a slight decline from 2022 to 2023, the company remains profitable. The independent auditors have not raised any concerns about Aire-Master's ability to continue as a going concern. It is noted that a large portion of Aire-Master's manufacturing sales comes from a few major customers, which could pose a concentration risk for the franchisor.
Financing Details
Aire-Master may, at its discretion, finance a portion of the initial franchise fee, but it does not finance other opening or operating costs, nor does it guarantee third-party loans. If Aire-Master offers financing, the terms generally include a substantial down payment (50% to 75%), a fixed or variable interest rate up to 8% over the prime rate at a Missouri bank (compounded monthly), and monthly payments over a short term (2 to 4 years). This financing would be secured by a security interest in the franchise, inventory, or other property (potentially including the franchisee's residence), and would require a personal guarantee from the franchisee and other equity owners. Defaulting on the loan would lead to immediate acceleration of the full balance, an increased interest rate (2% over the note rate), and a 5% late payment fee. The specific terms offered depend on commercial interest rates, financial institution policies, and the franchisee's credit standing, equity investment, and business experience. Aire-Master did not make any loans during the prior fiscal year.
Performance Metrics
Total US Locations
122
Franchised Units
115
Corporate Units
7
Franchising Since
1977
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Aire-Master reports having no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document, indicating that Aire-Master has a clean legal record with no material lawsuits or legal disputes to report.
Bankruptcy History
Aire-Master of America has no bankruptcy history to disclose.
Agreement Terms
Initial Term
3 years
Renewal Term
3 years
Renewal Conditions
Aire-Master franchisees can renew their agreement through mutual agreement with Aire-Master. To qualify for renewal, Aire-Master franchisees must be current and in full compliance with all obligations under their Franchise Agreement, including meeting specific sales quotas (Gross Service Billings equal to or exceeding $.03⅓ per person in the territory during the first year, $.06⅔ in the second year, and $.10 in the third year, with these requirements adjusted at renewal for changes in population, CPI, and Aire-Master's standard formula). They must also have satisfied all monetary obligations to Aire-Master and participate in the Shared Accounts program. Additionally, Aire-Master franchisees will need to sign Aire-Master's then-current Franchise Agreement, which may include terms and conditions materially different from their original agreement. Aire-Master franchisees must also notify Aire-Master in writing at least 30 days before the current term ends.
Training & Support Program
Franchisor Assistance
Aire-Master provides a range of assistance to its franchisees. Before opening, Aire-Master designates an exclusive territory and conducts up to five days of initial training at its Nixa, Missouri headquarters for the franchisee, managerial staff, and up to five employees. Aire-Master covers travel, lodging, and some meals for up to two people during this training. An additional five days of on-site training is provided in the franchisee's territory. Aire-Master also supplies opening inventory (which franchisees must purchase), provides sales promotional materials, offers access to online training courses, and licenses its proprietary web-based computer software for route scheduling and invoicing. Aire-Master also helps franchisees prepare publicity programs. For ongoing support, Aire-Master continues to furnish sales promotional aids and maintains and updates its proprietary software without additional charge. Franchisees have access to training sessions for new franchisees (though Aire-Master may charge for this). Aire-Master may also conduct mandatory visits to franchisee locations, with franchisees covering the representative's travel and lodging. Aire-Master helps negotiate purchase arrangements with suppliers and manages an advertising fund, to which franchisees contribute, for system-wide marketing efforts.
Initial Training Hours
80
Training Location
Aire-Master headquarters in Nixa, Missouri
Ongoing Support
After opening, Aire-Master provides its franchisees with continued access to its online training courses, which include mandatory and suggested operational specifications and procedures. Aire-Master also continues to furnish various sales promotional aids, such as price books, sales plans, and advertising suggestions. The franchisor licenses its proprietary web-based computer software, which is maintained, repaired, upgraded, and updated by Aire-Master without additional charge. Aire-Master assists in preparing publicity programs and manages an advertising fund, to which franchisees contribute 1.0% (potentially up to 4%) of Gross Service Billings, used for system-wide advertising materials. Aire-Master may also arrange purchase agreements with suppliers and conduct mandatory visits from its franchise representatives, with franchisees covering the representative's travel and lodging expenses. Franchisees may also access training sessions for other new franchisees, though Aire-Master reserves the right to charge for this additional training.
Franchise Requirements
Ideal Candidate Profile
Aire-Master seeks highly motivated individuals who demonstrate a strong aptitude and ability to operate the odor control, scent branding, and commercial hygiene system. Ideal candidates should possess good moral character, a solid business reputation, and a favorable credit rating. They must have adequate financial resources and capital to cover the initial investment and ongoing operational costs. Aire-Master requires franchisees (or persons owning at least 66% equity interest in an entity franchisee) to be hands-on operators, dedicating full time and personal involvement to the day-to-day management of the franchise business after completing the required training. While not explicitly stated as a prerequisite, managerial and business experience are considered in the evaluation process, particularly for transfer candidates. The franchise looks for individuals capable of rapid expansion and developing a quality account base.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
hybrid
Owner Participation
Full-Time
Territory Type
limited
Territory Size Requirements
Aire-Master grants its franchisees an exclusive geographic area defined in the Franchise Agreement, which includes a map. The typical minimum population for an Aire-Master territory is 500,000 people. While there is no minimum physical area, the size of the territory is determined based on factors such as population, projected markets, and other business considerations, with population data derived from the United States Census Bureau. Franchisees can locate their business office anywhere within this designated territory. Additionally, the continuation of a franchisee's territorial exclusivity is linked to achieving specific sales volume requirements, which are initially set at a minimum sales volume of $.10 per person within the territory population. This minimum sales volume is phased in over the first three years and is adjusted for population changes, CPI, and Aire-Master's current formula upon renewal.
Staffing Notes
An Aire-Master franchisee, whether a sole proprietor (including spouses), a designated manager, or an individual owning at least a 66% equity interest in an entity, must attend initial training for up to 5 days at Aire-Master's main offices in Nixa, Missouri. These key individuals are required to devote full-time personal involvement to the day-to-day operations of the Aire-Master franchise. Up to 5 additional employees of the franchisee may also attend this initial training. Following the corporate training, an Aire-Master representative will provide up to an additional 5 days of on-site training directly in the franchisee's territory. All managers and employees are required to sign non-compete and non-disclosure agreements, which must prohibit competition for one year within the employee's service area and prohibit disclosure of proprietary information indefinitely.