Varsity Zone Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$195,822 - $426,621
Franchise Fee
$30,000
Min Cash Required
$20,000
Total US Locations
1
Business Summary
Varsity Zone operates a business that specializes in commercial and residential heating, ventilation, and air conditioning (HVAC) installation, maintenance, and repair services. Varsity Zone offers these services year-round to both residential and commercial customers within a protected territory. The services include the installation, maintenance, and repair of HVAC equipment, indoor air quality services, geothermal and refrigeration services, and other approved products and services.
Corporate History
HPB HVAC LLC, operating as Varsity Zone, was organized in Pennsylvania on July 11, 2023, and began offering franchises in June 2024. The company's business model for HVAC services is based on the operations of a predecessor, Amped Services Plus, INC. Amped Services Plus, INC. was formed in Florida in May 2021 and had been operating a commercial and residential HVAC business since 2001. Varsity Zone acquired certain assets and confidential information from Amped Services Plus, INC. on June 9, 2023. The founder of Varsity Zone, Philip Crutchfield, previously owned Amped Services Plus, INC. The Founder Business rebranded to a Varsity Zone Franchised Business in May 2024 and serves as its flagship outlet.
Financial Overview
Investment Range
$195,822 - $426,621
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$59,500
Minimum Cash Required
$20,000
Royalty %
7%
Equipment Costs (Low)
$49,293
Equipment Costs (High)
$70,492
Working Capital
$25,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Varsity Zone is an emerging franchise system with a limited operating history, formed in June 2023. Its audited financial statements as of May 3, 2024, show a net loss of $56,991 from inception (June 11, 2023). The company had $240,000 in cash and $183,009 in members' equity at that time. Unaudiated financial statements as of September 30, 2024, indicate a net loss of $400,956 for the period from January 1, 2024, to September 30, 2024. However, the company also reported $856,542 in cash and $1,223,632 in member contributions, resulting in $822,676 in members' equity. The independent auditor did not issue a going concern qualification, suggesting no substantial doubt about Varsity Zone's ability to continue operations.
Financing Details
Varsity Zone may, at its option and in limited circumstances, finance a portion of the initial franchise fee for multi-unit purchases. Specifically, it can finance up to 60% of the franchise fee for a second territory and up to 80% for third, fourth, and fifth territories, with a maximum financed amount of $100,000. Financing is not offered for the first territory. The interest rate is the Prime Rate plus 2%, with a term of up to 36 months, and no prepayment penalty. Qualification depends on the franchisee's creditworthiness and available collateral. In the event of default, the loan balance is accelerated, and the franchisee could lose their franchise, incurring attorney fees and enforcement costs. Varsity Zone does not receive payments from third parties for financing referrals and does not guarantee any third-party obligations.
Performance Metrics
Total US Locations
1
Franchised Units
1
Corporate Units
0
Avg Square Footage
1,750
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Varsity Zone, through its parent and affiliates, has been involved in two civil actions that occurred within the last three years but were dismissed prior to the FDD issuance date. These cases, Waldron, et al. v. SVHB Marketing LLC, et al., and HPB Lighting LLC v. Calm Family LLC, et al., both filed in 2023, involved claims such as fraudulent inducement, breach of contract, negligent misrepresentation, and violations of state statutes. Both cases were consolidated and subsequently dismissed without prejudice in April 2024. Varsity Zone states that no litigation is currently pending and maintains that the plaintiffs' claims were without merit.
Bankruptcy History
Varsity Zone has no bankruptcy information to report for itself, its parent, predecessors, affiliates, or any person identified in Item 2.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Varsity Zone franchisees must provide written notice between 12 and 18 months before the current term expires. They must prove they have the right to operate at their approved location (or a new acceptable one), update their business to meet current System standards, and be in substantial compliance with all agreements with Varsity Zone and its affiliates. Franchisees must also pay all outstanding monetary obligations, sign Varsity Zone's then-current franchise agreement (which may have different terms and higher fees), meet current training requirements, execute a general release of claims, and pay a renewal fee equal to 20% of their initial franchise fee.
Training & Support Program
Franchisor Assistance
Before opening, Varsity Zone assists franchisees by defining their protected territory, providing an opening package and a list of approved products, services, and suppliers. They grant access to their confidential Operations Manual and intranet system. Varsity Zone provides an Initial Training Program for the franchisee and up to two additional representatives, including a general manager. They offer advice and guidance for preparing to open, set up a dedicated phone number and email accounts, and coordinate brand marketing. After opening, Varsity Zone may require additional or remedial training for franchisees and their staff, potentially for a fee. They may also provide on-site training or consultation upon request, also for a fee plus expenses. Varsity Zone continuously modifies and updates its System and Operations Manual, and maintains a Call Center to manage customer inquiries and assign work orders. They conduct periodic inspections and audits of the business and financial records, and offer ongoing advice regarding operations and use of the Proprietary Marks.
Initial Training Hours
48
Training Location
Omaha, NE
Ongoing Support
After opening, Varsity Zone provides several forms of ongoing support. This includes offering additional or remedial training courses for franchisees and their management and employees, for which a daily fee may be charged. Varsity Zone may also provide on-site training or consultation at the franchisee's business location upon request, subject to availability and a daily fee plus expenses. The franchisor continuously modifies and updates its System and Operations Manual and provides updated lists of approved products, services, and suppliers. Varsity Zone operates a Call Center to manage customer inquiries and assign work orders. They conduct periodic inspections and audits of the franchisee's business and financial records, and offer periodic advice and guidance regarding the ongoing operation of the Varsity Zone Business and use of the Proprietary Marks and System. Franchisees are also required to attend an annual conference, which may involve a registration fee.
Franchise Requirements
Ideal Candidate Profile
Varsity Zone is seeking individuals who are prepared to obtain necessary licenses, permits, and/or certifications required to operate an HVAC business. While no specific prior experience in HVAC services is required, ideal candidates must devote their personal attention, skill, and best efforts to the management and operation of the Varsity Zone Business, and to promote demand for its products and services. Franchisees may employ a manager for day-to-day operations, but the business must always be staffed with at least one individual who has successfully completed the initial training program.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
hybrid
Owner Participation
supervisory
Territory Type
protected
Staff Count
3
Territory Size Requirements
Each Varsity Zone Protected Territory is typically defined by a population of approximately 200,000 individuals. The exact size depends on geography, demographics, and other factors. If the cumulative general population of a franchisee's territories exceeds certain figures, an additional overage fee of $0.30 per individual is required.
Staffing Notes
Varsity Zone franchisees must employ a sufficient number of qualified and competent personnel to operate the business, ensuring prompt, courteous, and efficient service. The Varsity Zone Business must always be staffed with at least one individual who has successfully completed the initial training program. If a Designated Manager is employed for day-to-day operations, they must be approved by Varsity Zone in writing and complete the Initial Training Program before starting. This manager is not allowed to seek or maintain other employment during the franchise term. All employees must adhere to Varsity Zone's uniform and dress code standards. Franchisees are solely responsible for all employment decisions and compliance with federal, state, and local labor laws. Employees and subcontractors who access confidential information must sign confidentiality agreements.