Risk Score
Pending analysis
Investment Range
$380,675 - $393,725
Franchise Fee
$147,500
Min Cash Required
$97,000
Business Summary
The PlumbingPro® franchise system offers residential and commercial plumbing services and repairs, available 24 hours a day, 365 days a year. These services include sewer and drain cleaning, water damage restoration, water/sewer/gas line repairs, water heater repair and replacement, garbage disposals, leak repairs, re-piping, slab leaks, hydro jetting service, mobile home hookups, fixture repair and replacement, video camera inspections, and remodeling work. Franchisees are required to provide up to four service categories: plumbing and drains, water damage restoration, water heaters, and sewage tanks.
Corporate History
SystemForward America, LLC was incorporated in Louisiana on October 1, 2003. It primarily grants PlumbingPro, Pop-A-Lock, and TemperaturePro franchises, and does not operate any company-owned businesses. PlumbingPro franchises have been offered since 2018. The company's history includes a merger with its predecessor, The LSR Group, in October 2003. The LSR Group was incorporated in 2000 and acquired the Pop-A-Lock Franchise System from Sig 5 Franchise Development Corporation (incorporated in 1995) in 2000. Sig 5 Franchise Development Corporation had, in turn, received an exclusive license to grant Pop-A-Lock franchises from Sig 5 Corporation, which opened its first Pop-A-Lock Franchise in 1992. The PlumbingPro Advertising Fund, Inc., an affiliate, was established in 2018 to administer the PlumbingPro Advertising Fund.
Financial Overview
Investment Range
$380,675 - $393,725
Franchise Fee (Low)
$147,500
Franchise Fee (High)
$147,500
Minimum Cash Required
$97,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$97,400
Equipment Costs (High)
$99,800
Working Capital
$98,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
PlumbingPro's financial condition raises concerns about its ability to provide services and support to franchisees. As of December 31, 2023, PlumbingPro has negative stockholders' equity of ($1,885,976) and negative retained earnings of ($1,970,976), indicating that its liabilities significantly exceed its assets. While the company maintains positive working capital with current assets exceeding current liabilities, its long-term liabilities are substantial. PlumbingPro has also incurred significant "other expenses" related to franchisee disputes, totaling $662,500 in 2023 and $127,200 in 2022, which further impacts its profitability.
Financing Details
PlumbingPro does not offer any direct or indirect financing options to its franchisees. Additionally, PlumbingPro does not guarantee any franchisee's notes, leases, or other obligations. Franchisees are responsible for securing their own funding.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Avg Square Footage
1,000
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
PlumbingPro has a very limited litigation history. During the fiscal year ending December 31, 2023, PlumbingPro initiated one action against a franchisee, Blossom Industries LLC. This case was filed on November 9, 2023, with the American Arbitration Association, seeking to enforce restrictive covenants and collect royalties. No other litigation is required to be disclosed.
Bankruptcy History
PlumbingPro has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew a PlumbingPro franchise, franchisees must meet several conditions. PlumbingPro franchisees must be in good standing and not have been in default of any material obligation that was not cured within 30 days of written notification, nor be subject to immediate termination. Franchisees are required to provide written notice of their intent to renew 18 months before their current agreement expires. If these conditions are met, PlumbingPro will provide the franchisee with its then-current Franchise Agreement, which may include terms substantially different from their original agreement, such as increased royalty and advertising fees (though royalty will not exceed 10% and advertising will not exceed 2%). However, no renewal franchise fees are charged. The franchisee must sign and return this new agreement at least 30 days before the new 10-year term begins.
Training & Support Program
Franchisor Assistance
PlumbingPro assists franchisees with pre-opening tasks by designating their exclusive franchise area and the business commencement date. It provides an operations manual and conducts initial training for the franchisee and/or designated manager in management, marketing, bookkeeping, safety, communications, and employee relations. PlumbingPro also helps with selecting online directories for advertising and specifies a required computer system with proprietary software. Post-opening, PlumbingPro offers ongoing operational and management counseling, advises on new developments, and provides advertising materials through its Advertising Fund. This includes generic marketing materials or customized items upon request. The franchisor may use advertising fees for regional or national media campaigns and provides guidance on local advertising, which requires prior written approval. PlumbingPro also advises when to take or provides technical and/or sales training, though franchisees cover travel and living expenses for this training.
Initial Training Hours
98
Training Location
Lafayette, Louisiana
Ongoing Support
During operation, PlumbingPro provides franchisees with its Confidential Franchise Operations System Manual, which is subject to modification. It offers operational and management counseling upon request and advises on new developments in management methods, service methods, and tools. PlumbingPro provides advertising materials and services through the PlumbingPro Advertising Fund, including generic marketing materials, infographics, press releases, brochures, and logos at no charge, or customized materials if requested. The franchisor can use advertising fees for regional or national media advertising and advises and assists with local advertising (which requires prior written approval). PlumbingPro also advises when to take and/or provides technical and/or sales training.
Franchise Requirements
Ideal Candidate Profile
PlumbingPro seeks franchisees who either already possess the necessary knowledge and skills to operate the franchise business professionally and safely, or are committed to hiring employees who do, as the provided training program is not designed to cover these foundational skills. Franchisees are required to use PlumbingPro's preferred recruiting service to find and secure an Operations Manager and/or Senior Technician who will oversee daily operations. This key employee must be approved by both the franchisee and PlumbingPro, and must be replaced if they do not meet performance standards within 60 days. Additionally, PlumbingPro expects franchisees to hire efficient, competent, sober, and courteous employees, including an employee (preferably the Operations Manager) who is proficient in English to participate in all communications and meetings.
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Exclusive
Staff Count
5
Territory Size Requirements
PlumbingPro franchise territories are defined by geographic ZIP code areas, with the population determined by the latest U.S. Census numbers. The minimum territory granted is a franchise area with a population of 500,000 or more.
Staffing Notes
PlumbingPro franchisees are required to operate 24 hours a day, 365 days a year, necessitating staffing with an adequate number of employees or contracted answering services to maximize revenues. A minimum of one vehicle, one operations manager, and one technician are required during the last six months of the first agreement year. Franchisees must recruit and hire efficient, competent, sober, and courteous employees. The Operations Manager (or Senior Technician) must be sourced through PlumbingPro's preferred recruiting service and approved by both the franchisee and franchisor. If this key employee fails to meet performance standards within 60 days, the franchisee must use the preferred recruiting service for a replacement. An English-speaking employee, ideally the Operations Manager, must be available for all calls and meetings. Employees must receive sufficient plumbing training from an approved source and wear franchisor-approved apparel.