Heating + Air Paramedics Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$124,375 - $309,000
Total US Locations
14
Business Summary
Heating + Air Paramedics operates a business providing residential heating and air conditioning installation, repair, replacement, and maintenance services. Franchisees deliver these services to customers within a designated territory, utilizing the Heating + Air Paramedics System and its approved methods.
Corporate History
PHP Franchise, LLC, which operates as Heating + Air Paramedics, was formed on October 13, 2021, and started offering franchises for residential heating and air conditioning services in November 2021. The brand is part of a larger family of companies under Threshold Brands, LLC, which is a subsidiary of HS Group Holding Company, LLC, managed by the global private equity firm, The Riverside Company. Heating + Air Paramedics had a predecessor, Plumbing Heating Paramedics, LLC, which operated a similar business from February 2011 until it was sold to a franchisee in February 2024, and was the original owner of some of the brand's trademarks.
Financial Overview
Investment Range
$124,375 - $309,000
Franchise Fee (High)
$40,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$9,000
Equipment Costs (High)
$33,000
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The parent company of Heating + Air Paramedics, HS Group Holding Company, LLC, has reported consolidated net losses of $13,009,103 in 2024 and $10,469,007 in 2023. The company's management is currently in negotiations with lenders to extend the maturity date of a significant portion of its long-term debt, which includes a balloon payment due in December 2025. The auditors also noted an emphasis of matter regarding a restatement of members' equity as of January 1, 2024, to correct an accounts receivable misstatement, though this did not modify the overall unqualified opinion.
Financing Details
Heating + Air Paramedics offers direct financing for the Initial Franchise Fee to qualified franchisees, particularly those who meet creditworthiness standards. This financing can cover up to the full amount of the Initial Franchise Fee. If a franchisee accepts this option, they will sign a Promissory Note, which includes scheduled monthly installments for up to 24 months. The interest rate charged on this financing is an annual rate of 12%. Franchisees have the option to prepay the Promissory Note at any time without incurring a penalty.
Performance Metrics
Total US Locations
14
Franchised Units
14
Corporate Units
0
Avg Square Footage
1,000
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Heating + Air Paramedics has no litigation to report in this FDD. There are no pending administrative, criminal, or civil actions, nor any convictions or restrictive orders disclosed for the franchisor, its predecessor, or key management personnel.
Bankruptcy History
Heating + Air Paramedics has no bankruptcy information to report in this FDD for itself, its predecessors, parents, affiliates, or executive officers.
Agreement Terms
Initial Term
10 years
Renewal Conditions
To renew their franchise, Heating + Air Paramedics franchisees must provide written notice of their intent to renew at least six months before the current agreement expires. They must not have any current defaults under their franchise agreement or other agreements with Heating + Air Paramedics or its affiliates, nor can they have received three or more default notices during the term, regardless of whether those defaults were cured. All amounts owed to the franchisor and its affiliates must be current, and there should be no defaults with supplier agreements. Franchisees will also need to sign Heating + Air Paramedics' then-current franchise agreement, which may have different terms and conditions, and pay a renewal fee equal to 20% of the then-current initial franchise fee for new franchisees. Finally, they must sign the then-current Renewal Amendment, which includes a general release.
Training & Support Program
Franchisor Assistance
Heating + Air Paramedics provides extensive assistance to its franchisees. Before opening, Heating + Air Paramedics reviews and approves the franchisee's business site, provides an initial training program for up to four attendees, makes the Operations Manual available electronically, and issues four branded email user licenses. After opening, Heating + Air Paramedics periodically updates its standards and provides recommendations and requirements for software, equipment, vehicles, office space design, inventory, marketing, and office management. It also sets accounting and revenue tracking guidelines, offers reasonable operating assistance through its representatives, and provides additional branded email user licenses for purchase. Heating + Air Paramedics also furnishes various customizable forms and templates and offers support and management services for any approved Internet Presence, such as websites, business profiles, and review platforms.
Initial Training Hours
60
Training Location
Virtual or Noblesville, IN
Ongoing Support
Heating + Air Paramedics provides ongoing support by periodically updating operational standards for areas like computer systems, products, equipment, and vehicle branding. Heating + Air Paramedics offers recommendations and requirements for various aspects of business operations, including software, equipment, and marketing. It sets accounting and reporting guidelines and offers reasonable operating assistance through its representatives. Franchisees can purchase additional branded email user licenses and utilize customizable forms and templates. Heating + Air Paramedics also provides support and management services for approved online presences. Franchisees are required to attend annual conventions and contribute to a Brand Fund, which is used for marketing and brand promotion, including sales and marketing coaching for franchisees.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Limited
Territory Size Requirements
Heating + Air Paramedics territories are defined by a minimum population of 100,000 single-family homes, determined using U.S. census data. These territories are delineated by specific zip codes, Census Tracts, or other geographical boundaries.
Staffing Notes
Heating + Air Paramedics franchisees are required to have a principal owner who manages the Franchised Business on a full-time basis, unless the franchisor provides written approval for an alternative arrangement. This principal owner must also be the license holder for the Franchised Business if required by applicable law. If a Heating + Air Paramedics franchisee chooses to employ an on-site supervisor, that individual must successfully complete the franchisor's Initial Training Program and receive approval from the franchisor. The franchisor recommends that this on-site supervisor be a properly licensed technician or a person with comparable experience in heating and air conditioning services.