Risk Score
Pending analysis
Investment Range
$403,975 - $437,825
Franchise Fee
$147,500
Min Cash Required
$130,000
Total US Locations
189
Business Summary
TemperaturePro franchises specialize in providing commercial and residential insulation, heating, ventilation, and air conditioning (HVAC) services. Franchisees offer core services in heating, ventilation, and air conditioning, along with other related services as directed by the franchisor. TemperaturePro aims to meet the HVAC needs of both homeowners and businesses.
Corporate History
SystemForward America, LLC, the franchisor for TemperaturePro, was incorporated in Louisiana on October 1, 2003. The company offers franchises for TemperaturePro, Pop-A-Lock (security and locksmith services), and PlumbingPro (plumbing services). TemperaturePro franchises have been offered since 2014. The company's history includes mergers with predecessors; The LSR Group (incorporated in 2000) and Sig 5 Franchise Development Corporation (incorporated in 1995), which originally held an exclusive license to grant Pop-A-Lock franchises from Sig 5 Corporation (which started offering Pop-A-Lock franchises in 1994).
Financial Overview
Investment Range
$403,975 - $437,825
Franchise Fee (Low)
$147,500
Franchise Fee (High)
$147,500
Minimum Cash Required
$130,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$75,000
Equipment Costs (High)
$315,000
Working Capital
$140,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
TemperaturePro's financial condition, as noted in its Special Risks section, raises questions about its ability to provide services and support to franchisees. The financial statements for 2023 show a negative stockholders' equity of -$1,885,976, indicating liabilities exceed assets. Cash balances significantly decreased from $1,141,409 in 2022 to $450,233 in 2023, and total revenues declined from $7,152,215 in 2022 to $5,339,278 in 2023. TemperaturePro also incurred substantial 'other expenses' related to franchisee disputes, totaling $662,500 in 2023.
Financing Details
TemperaturePro does not offer any direct or indirect financing to its franchisees. Additionally, it does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
189
Franchised Units
186
Corporate Units
3
Avg Square Footage
1,000
Franchising Since
2014
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
TemperaturePro has reported one litigation action initiated during the fiscal year ending December 31, 2023. This action was an arbitration filed on November 9, 2023, against a franchisee, Blossom Industries LLC, et al., concerning the enforcement of restrictive covenants and the collection of royalties. No other litigation is required to be disclosed by TemperaturePro.
Bankruptcy History
TemperaturePro has no bankruptcy information to report for itself, its predecessors, or its affiliates.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, TemperaturePro franchisees must be in good standing, without uncured material defaults, and provide written notice of their intent to renew 18 months prior to expiration. They must sign the then-current form of franchise agreement, which may include different terms, although the renewal term will not be less than 10 years, and royalty and advertising fees will not exceed 10% and 2% of gross sales, respectively. No renewal franchise fees are required. The new agreement must be returned to TemperaturePro at least 30 days before the new term begins.
Training & Support Program
Franchisor Assistance
TemperaturePro provides pre-opening assistance by designating the exclusive franchise area and opening date, supplying a Confidential Franchise Operations System Manual, and training the franchisee or designated manager in management and operations (including marketing, bookkeeping, safety, communications, and employer-employee relations). They also help with selecting online directory advertisements. Post-opening, TemperaturePro offers ongoing operational and management counseling, provides advertising materials and services through the TemperaturePro Advertising Fund (including infographics, press releases, brochures, and logos), manages the Ad Fund for regional or national media, advises on local advertising, and offers technical and sales training.
Initial Training Hours
98
Training Location
Lafayette, Louisiana and franchisee's location
Ongoing Support
TemperaturePro provides ongoing assistance including updates to its Confidential Franchise Operations System Manual, operational and management counseling upon request, and advertising materials and services through the TemperaturePro Advertising Fund, such as infographics, press releases, brochures, and logos. The franchisor manages the Ad Fund for regional or national media and advises franchisees on local advertising. TemperaturePro also advises on and provides technical and sales training as needed.
Franchise Requirements
Ideal Candidate Profile
TemperaturePro is seeking franchisees who either already possess or are able to hire employees with the necessary knowledge and skills to operate the franchise business professionally and safely. This is because the franchisor's training program is not designed to provide all the required operational knowledge and skills.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
commercial
Owner Participation
Full-Time
Territory Type
Exclusive
Staff Count
5
Territory Size Requirements
TemperaturePro franchises grant exclusive territories defined by geographic ZIP code areas, with a minimum population of 500,000, determined using the latest U.S. Census numbers.
Staffing Notes
TemperaturePro requires the franchised business to operate 24 hours a day, 365 days a year, necessitating staffing with employees or contracted answering services to meet this demand. For the last six months of the first year, a minimum of one vehicle, one service manager, and one technician is required. Franchisees must use TemperaturePro's preferred recruiting service to find and replace their Operations Manager and/or Senior Technician, who must be approved by both the franchisee and franchisor. These managers or senior technicians are in charge of day-to-day operations. Franchisees must have an employee available who speaks and comprehends English for all calls and meetings. The initial setup assumes an Operations Manager, office staff, and service technician(s).