One Hour Heating & Air Conditioning Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$84,570 - $286,702
Franchise Fee
$5,000
Total US Locations
439
Business Summary
One Hour Heating & Air Conditioning offers residential and light commercial air conditioning and heating services. These services include indoor air quality services, maintenance, repairs, and equipment replacement. The company defines light commercial work as services performed in single-tenant buildings under 10,000 square feet or connected office spaces under 5,000 square feet. The franchise specifically excludes industrial and new construction services from its approved offerings.
Corporate History
One Hour Heating & Air Conditioning is currently franchised by One Hour Air Conditioning Franchising SPE LLC, a Delaware limited liability company organized on March 24, 2021. This entity became the franchisor of the One Hour Heating & Air Conditioning system on May 14, 2021, and began offering franchises on May 17, 2021. Prior to this, its predecessor, One Hour Air Conditioning Franchising, L.L.C., had been offering One Hour Heating & Air Conditioning franchises since April 2003. The current franchisor operates under the umbrella of Authority Brands, Inc., whose ultimate majority owner is Apax Partners, LLP, a private equity firm. Authority Brands, Inc. underwent a significant securitization transaction in May 2021, which restructured its affiliates. One Hour Heating & Air Conditioning benefits from centralized support and services through Authority Brands, Inc., which also acts as its franchise sales agent. Several of the franchisor's affiliates, such as BuyMax SPE LLC, UWIN, LLC, and New Millennium Academy, L.L.C., provide purchasing, customer service, and training services to franchisees.
Financial Overview
Investment Range
$84,570 - $286,702
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$62,741
Royalty %
6%
Marketing %
1.5%
Equipment Costs (Low)
$7,313
Equipment Costs (High)
$55,620
Working Capital
$75,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
One Hour Heating & Air Conditioning's financial statements are consolidated with its parent company, AB Assetco LLC, which is part of a larger securitization structure under Authority Brands Inc. The company utilizes a centralized cash management and service allocation system managed by its parent. In 2024, the company recognized significant impairment losses totaling $17,775 related to its Successware software system, which is slated for sale in 2025. The parent company, Authority Brands Inc., also experienced substantial impairment losses in 2024 ($23,240), affecting assets such as Successware, the Color World business (which is being abandoned), and DoodyCalls retail operations. Additionally, Authority Brands Inc. reported a $10,276 loss from the sale of Monster New Tree Service LLC in 2024. Despite these impairments and losses, both One Hour Heating & Air Conditioning and its parent, Authority Brands Inc., were compliant with their debt covenants as of December 31, 2024, and management believes that no loss contingencies will materially affect the company's consolidated financial statements. The independent auditors have issued an unqualified opinion on the consolidated financial statements, indicating fair presentation in all material respects.
Financing Details
One Hour Heating & Air Conditioning may offer financing for up to 75% of the initial franchise fee and any additional population fee. This financed amount can be paid in up to 36 monthly installments at an annual interest rate of 12%, with payments starting the month after the franchise agreement is signed. Franchisees converting an existing HVAC business are eligible for a special Conversion Incentive Program, allowing them to finance 100% of the franchise fee (minus a $5,000 down payment). Under this program, payments are deferred for five years. Depending on the franchise's performance in its fifth year compared to its pre-conversion revenue, up to 100% of the financed amount may be forgiven. Any unforgiven balance is then paid over 48 monthly installments at a 12% annual interest rate. One Hour Heating & Air Conditioning does not offer financing for transactions involving brokers or other third-party referral sources, nor does it guarantee any other franchisee obligations.
Performance Metrics
Total US Locations
439
Franchised Units
411
Corporate Units
28
Avg Square Footage
2,500
Franchising Since
2003
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
7
Litigation Summary
One Hour Heating & Air Conditioning, along with its predecessor and affiliates, has been involved in several legal disputes. As of late 2024, One Hour Heating & Air Conditioning is a party in three pending lawsuits. Two of these lawsuits, filed in February and November 2024, are against franchisees or former franchisees for alleged breaches of contract, non-compete violations, trademark infringement, unfair competition, and collections. The third pending case, filed in December 2024, is a collections lawsuit against a franchisee's owner. In previous years, the company and its predecessor have concluded four notable cases. In 2016, the predecessor settled a breach of contract and competing business lawsuit with a franchisee for $200,000. Also in 2016, after being sued by a former franchisee for trademark misuse, the predecessor was ordered to pay $560,000 in attorneys' fees and costs. In 2015, a dispute with former franchisees over slogan infringement and non-competition clauses was settled, resulting in agreements to cease use of certain marks. Most recently, a 2021 lawsuit by a former franchisee against One Hour Heating & Air Conditioning regarding a post-term non-compete, territory, and customer database was settled in 2023, with the former franchisee paying the company for attorneys' fees and relief from the non-compete.
Bankruptcy History
One Hour Heating & Air Conditioning has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, One Hour Heating & Air Conditioning franchisees must provide written notice of their intent to renew 6 to 12 months before the agreement expires. They must be in good standing, with no defaults or litigation against the franchisor, and have a good record of customer service and compliance with Brand Standards. Franchisees must also agree to sign the then-current franchise agreement, pay a renewal fee, and sign a general release of claims against the franchisor. Additionally, they are required to complete any refresher training, demonstrate their right to maintain the approved business location for the renewal term, and remodel, refurbish, or renovate their vehicles and premises to meet current brand standards, as well as update computer systems and vehicles. The new franchise agreement may include different terms and fees.
Training & Support Program
Franchisor Assistance
One Hour Heating & Air Conditioning provides comprehensive support to its franchisees. Before opening, the franchisor assists with ordering equipment, technology, and signs from approved vendors, provides access to the Operations Manual and a Franchisee Portal, helps set up a Call Center account, and offers information on required software. The company also works with franchisees on developing pre-opening and grand opening marketing plans and provides general opening support. For ongoing operations, One Hour Heating & Air Conditioning offers additional required and optional training programs, develops and maintains Brand Standards, manages the Franchisee Portal, and oversees a Brand Standards assessment program. It also manages the Brand Fund, reviews franchisee advertising materials, manages social media accounts, monitors customer warranty programs, and handles relationships with Key Accounts. While not obligated, the franchisor currently provides site selection counseling and assistance.
Initial Training Hours
36
Training Location
Phoenix, Arizona
Ongoing Support
After opening, One Hour Heating & Air Conditioning franchisees receive ongoing support through various channels. The franchisor makes additional required and optional training programs available. It continuously develops and maintains the Brand Standards, manages the Franchisee Portal for communication and resources, and provides notifications regarding vendor specifications and approvals. The company also manages a Brand Standards assessment program to ensure quality, administers the Brand Fund, reviews franchisee advertising and promotional materials, and manages social media accounts related to the brand. Furthermore, One Hour Heating & Air Conditioning monitors and manages compliance with its customer warranty and satisfaction guarantee programs and handles Key Account relationships. Franchisees also have access to voluntary learning opportunities through instructor-led courses (from Success Academy and third-party vendors), webinars, and computer-based courses via Success Academy.
Franchise Requirements
Ideal Candidate Profile
One Hour Heating & Air Conditioning seeks individuals and business entities that meet its qualifications and are committed to owning and operating a franchise. While the Key Person responsible for day-to-day operations does not necessarily have to be an owner, they must successfully complete the franchisor's training program and work at the business office. The franchisor also conducts credit and background checks on owners and requires them to sign a Confidentiality and Non-Compete Agreement. Additionally, some state or local HVAC Services regulations may require the owner of an HVAC Services company to hold specific licenses.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Absentee Allowed
Territory Type
Protected
Staff Count
2
Territory Size Requirements
One Hour Heating & Air Conditioning territories are typically defined by postal zip codes and are based on population blocks of approximately 100,000 individuals. The franchisor uses recent U.S. Census Data or other chosen population statistical sources to determine these populations.
Staffing Notes
One Hour Heating & Air Conditioning requires franchisees to designate a Key Person responsible for the day-to-day operational performance of the business. This Key Person, who does not need to be an owner, must successfully complete the franchisor's training program and work full-time at the business office. If the Key Person leaves, a replacement must be nominated within 30 days and approved within 90 days. Franchisees are solely responsible for all employment decisions, including recruiting, hiring, scheduling, training (beyond initial franchisor training), compensation, and discipline. The company emphasizes that franchisees are the sole employer and not the franchisor, and may require initial and periodic drug testing and background checks for employees. It is recommended that the business has at least two employees in addition to the Key Person.