Mold Medics Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$141,250 - $250,000
Franchise Fee
$40,000
Total US Locations
6
Business Summary
Mold Medics operates a business that provides services and products related to air quality and environmental issues. This includes mold testing and remediation, cleaning of ducts and vents, dry-out services for water damage, and various restoration services such as drywall repair, painting, and drainage. They also offer dust control, encapsulation, demolition, ozone and odor treatments, and attic insulation and sealing.
Corporate History
Mold Medics Franchising LLC was formed on September 16, 2019, as a Pennsylvania limited liability company and began offering franchises in December 2020. Its predecessor, Mold Medics LLC (MMC), started operating a similar business in January 2018. In September 2019, MMC contributed the Mold Medics business system to the franchisor. In May 2023, Threshold Brands, LLC acquired all membership interests of Mold Medics Franchising LLC, making it part of a larger portfolio of service brands managed by The Riverside Company, a global private equity firm. The original company-owned Mold Medics business was sold to a franchisee in April 2024.
Financial Overview
Investment Range
$141,250 - $250,000
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$50,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$29,000
Equipment Costs (High)
$35,500
Working Capital
$39,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Mold Medics Franchising LLC's financial health is called into question by the franchisor itself, which states that its guarantor's financial condition, as reflected in the financial statements, raises doubts about Mold Medics Franchising LLC's financial ability to provide services and support. Additionally, the company's parent, HS Group Holding Company, LLC, has long-term debt with a balloon payment due in December 2025, and management is currently negotiating to extend this maturity date. There was also a restatement of members' equity in the prior year to correct an overstatement of accounts receivable.
Financing Details
Mold Medics Franchising LLC offers financing for the initial franchise fee, potentially covering the full amount for qualified and creditworthy candidates. This financing is structured through a Promissory Note, allowing for payment in monthly installments over up to 24 months. The interest rate charged is 12% per year, and the note can be prepaid without any penalty.
Performance Metrics
Total US Locations
6
Franchised Units
6
Corporate Units
0
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Mold Medics Franchising LLC has no litigation history to report.
Bankruptcy History
Mold Medics Franchising LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
7 years
Renewal Term
7 years
Renewal Conditions
To renew their agreement, Mold Medics franchisees must provide written notice of their intent to renew between 6 and 12 months before the initial term expires. They must demonstrate the right to operate their business at an approved location for the duration of the renewal term and complete all required upgrades to their business, systems, and equipment to meet current Mold Medics standards at least 90 days before expiration. Franchisees must also be in substantial compliance with all agreements, have no outstanding monetary obligations, and execute Mold Medics Franchising LLC's then-current franchise agreement and a renewal amendment, which includes a general release. A renewal fee, equal to 10% of the then-current initial franchise fee, is also required. Additionally, franchisees must satisfy any current training and compliance requirements at their own expense.
Training & Support Program
Franchisor Assistance
Mold Medics Franchising LLC provides comprehensive assistance to its franchisees. Before opening, Mold Medics Franchising LLC reviews and approves the business location, offers an initial training program free of charge for up to three individuals, and provides lists of required or approved vendors. Franchisees also gain electronic access to the Operations Manual. On an ongoing basis, Mold Medics Franchising LLC consults with franchisees by phone or email regarding business operations, provides regular updates on the system and programs, and offers training for replacement or additional employees for a fee. Mold Medics Franchising LLC also makes its employees available for advice and assistance, though additional assistance may incur charges for fees and expenses. Franchisees are required to attend mandatory conventions and meetings, covering their own expenses and registration fees. Mold Medics Franchising LLC also acts as the sole supplier for branded email licenses.
Initial Training Hours
74
Training Location
Cleveland, OH or designated location
Ongoing Support
After opening, Mold Medics Franchising LLC provides ongoing support to its franchisees through telephone and email consultations regarding business operations. Mold Medics Franchising LLC also offers continuous updates on information and programs related to the business and system, delivered through e-blasts, online webinars, and conference calls. Training for replacement or additional employees is available, subject to scheduling and a fee. Mold Medics Franchising LLC's employees are also available to provide advice and assistance, with additional support potentially incurring charges for fees and travel expenses. Franchisees are required to attend periodic conventions or meetings, covering their own registration fees and travel costs.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Staff Count
2
Territory Size Requirements
Mold Medics Franchising LLC defines its territories to include approximately 250,000 people, based on the most recent U.S. Census data. These territories are outlined using clear boundaries such as city or county limits, specific Zip Code areas, or defined street boundaries.
Staffing Notes
Mold Medics Franchising LLC recommends that franchisees initially operate their business with at least two employees in addition to the owner: one sales representative and one technician. Both of these recommended employees should attend the initial training program.