Risk Score
Pending analysis
Investment Range
$267,459 - $353,659
Franchise Fee
$30,000
Min Cash Required
$20,000
Total US Locations
36
Business Summary
iFoam offers specialized commercial and residential foam spray insulation products and services, including new and replacement attic and crawl space insulation, as well as insulation for agricultural, industrial, and commercial properties. iFoam also provides blow-in and insulation removal services. The business operates using a proprietary system that includes methods for property assessment, product installation, customized software, and general operational procedures, serving both residential and commercial customers.
Corporate History
HPB Foam LLC was formed on October 1, 2021, in Pennsylvania and began franchising in January 2022. The company operates under the ownership of its parent, JEZ Investments LLC, which was organized in May 2020. iFoam's current franchise model builds upon the foundation of a predecessor company, I-Foam LLC, which was formed in Alabama in 2011 by Jonathan Roll, the current Founder of HPB Foam LLC. I-Foam LLC operated a spray foam insulation business since 2012 and also began offering franchises in 2012. On November 15, 2021, HPB Foam LLC acquired certain assets and an existing franchise agreement from an affiliate of I-Foam LLC, integrating this historical business into its new franchising system.
Financial Overview
Investment Range
$267,459 - $353,659
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$59,500
Minimum Cash Required
$20,000
Royalty %
8.5%
Equipment Costs (Low)
$109,855
Equipment Costs (High)
$145,955
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
HPB Foam LLC has experienced consistent net losses and negative cash flow from operating activities in 2022 and 2023, leading to a significant accumulated members' deficit. Specifically, the company reported a net loss of $1,057,402 in 2023 and $1,920,170 in 2022, with negative operating cash flows of $368,105 in 2023 and $770,428 in 2022. As of December 31, 2023, the company had a members' deficit of $1,615,886. The independent auditor's report mentions management's responsibility to evaluate if there are conditions raising substantial doubt about the company's ability to continue as a going concern, indicating potential financial uncertainties.
Financing Details
iFoam offers limited financing for a portion of the initial franchise fee, but only for the purchase of additional Protected Territories after the first one. For a second Protected Territory, iFoam may finance up to 60% of the initial franchise fee (up to $24,000), and for a third Protected Territory, up to 80% ($28,000), with a total maximum financing of $52,000. These loans are for up to 36 months, bear interest at the Prime Rate plus 2%, and have variable monthly payments. There is no prepayment penalty, but borrowers must sign a Secured Promissory Note and General Security Agreement, personally guaranteed by the owners. iFoam does not offer any financing for the initial purchase of the first Protected Territory.
Performance Metrics
Total US Locations
36
Franchised Units
35
Corporate Units
1
Avg Square Footage
2,500
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
iFoam, as HPB Foam LLC, has not been directly involved in any pending or concluded litigation. However, in 2023, two material civil actions were filed against its affiliate, HPB Lighting LLC (the franchisor of the Blingle! system), its parent SVHB Marketing LLC, and several individuals associated with iFoam's management. These cases, initiated by current and former Blingle! franchisees, alleged fraudulent inducement, fraud, negligent misrepresentation, breach of contract, and other violations. In both instances, the cases were dismissed in April 2024, either due to the plaintiffs' failure to comply with a mediation precondition or via joint stipulations of dismissal without prejudice. HPB Foam LLC maintains that these claims were without merit.
Bankruptcy History
HPB Foam LLC has no bankruptcy information required to be disclosed. This indicates that neither the franchisor nor its executives have a reportable bankruptcy history.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, iFoam franchisees must provide written notice of their intent to renew 12 to 18 months before the current term expires. They need to demonstrate their right to operate from an approved location for the renewal term or secure a new acceptable site within their territory. Franchisees must also complete any necessary updates to all required equipment, tools, supplies, inventory, hardware, software, and vehicles to meet iFoam's current System standards for new franchisees, and ensure their approved location is maintained, refurbished, renovated, and remodeled to satisfy current standards. Additionally, they must not be in breach of any agreements with iFoam or its affiliates/suppliers, satisfy all monetary obligations, complete any current training requirements, sign a general release in favor of iFoam and its affiliates, and pay a renewal fee equal to 20% of the initial franchise fee.
Training & Support Program
Franchisor Assistance
iFoam provides pre-opening assistance that includes defining the Protected Territory, supplying the Opening Package and Initial Inventory Package, and a list of Approved Suppliers. Franchisees gain access to iFoam's confidential Operations Manual and Intranet System, and receive advice and guidance for preparing to open their business, including standards for inventory, services, advertising, and operations during startup. iFoam also provides a dedicated phone number and email accounts for the business and coordinates brand optimization services. Post-opening, iFoam may require franchisees and their key personnel to attend additional or remedial training, potentially for an extra fee, and can offer on-site training or consultation upon request, also with associated fees and expense reimbursement. iFoam continuously modifies and updates the System, Operations Manual, and lists of Approved Products and Suppliers. The franchisor operates a Call Center to manage customer inquiries and assign work orders, and conducts periodic inspections and audits of the business and financial records. General operational advice and guidance are also provided through various communication channels.
Initial Training Hours
48
Training Location
Omaha, NE
Ongoing Support
After opening, iFoam may schedule and require franchisees and their key personnel (general managers, estimators, installers, and other employees) to attend additional or refresher training courses. These courses may be conducted digitally online, at iFoam's corporate headquarters in Omaha, Nebraska, or other designated facilities, potentially incurring an Assistance Training Fee of $500 per person per day plus associated expenses. iFoam may also provide remedial training if a franchisee is not complying with System standards. Upon request or as deemed necessary, iFoam offers on-site training or consultation, subject to personnel availability, with an Assistance Training Fee and expense reimbursement. iFoam modifies and updates the System and Operations Manual, provides updated lists of Approved Products and Services and Approved Suppliers, and operates a Call Center to field customer calls and route work orders. Periodic inspections and audits of the business and financial records are conducted, and general advice and guidance are provided through meetings, materials, telephone, and email.
Franchise Requirements
Ideal Candidate Profile
iFoam seeks individuals who possess strong entrepreneurial and managerial abilities and a focus on customer service. While prior experience in spray foam insulation services is not required, candidates should be prepared to devote their full-time attention to managing and operating the business.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
iFoam defines a single Protected Territory to consist of a population of approximately 200,000 individuals. The exact size is determined based on geography, demographics, and other factors. If the cumulative general population for a franchisee's Protected Territory exceeds these figures, an overage fee of $0.30 per individual is charged in addition to the initial franchise fee.
Staffing Notes
iFoam requires that the franchisee (or their principals) dedicate their full-time attention and best efforts to the management and operation of the business. Alternatively, franchisees may employ an approved Designated Manager to handle day-to-day operations, provided this manager completes iFoam's Initial Training Program and does not hold other employment. The iFoam business must always be staffed with at least one individual who has successfully completed the Initial Training Program. The Operations Manual lists various job descriptions, including Operations Manager, Project Manager, Sales Representative, Warehouse Manager, and Spray Foam Technicians (Senior, Junior, Apprentice). It also outlines policies for human resources, including hiring, wage and labor laws, harassment, and subcontractor requirements.