FranchiseVerdict
Heating + Air Paramedics logo
FV-01176·STRONGExcellent95

Heating + Air Paramedics

Home Services - Plumbing & HVACFranchising since 2021Website
Investment
$101K – $193K
29th pct Plumbing & HV…
Avg revenue
$1.9M
38th pct Plumbing & HV…
Royalty
5.0%
8th pct Plumbing & HV…
Units
22
25th pct Plumbing & HV…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $101K – $193K including a $40K franchise fee, 5.0% ongoing royalty.
  • Average unit revenue of $1.9M/year (median $1.7M).
  • Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
  • System growing at 340.0% CAGR over 3 years with 22 total units — strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Legal entity
PHP Franchise, LLC
Parent company
Threshold Brands, LLC
Incorporated in
Delaware
HQ
17700 Saint Clair Avenue, Cleveland, Ohio 44110
Auditor
Plante & Moran, PLLC
Audited financials
Franchisor revenue
$49.0M
vs $47.9M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Heating + Air Paramedics unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $1,920,527
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restoration
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $101K–$193K
Working capital
$
FDD reports $25K–$50K

Unlevered ROIC · per unit

125%

Above typical band (30–60%)

0%30–60% Yale band80%
ROIC above 100% usually means the revenue figure is a system-wide aggregate or top-cohort number rather than a single-unit average. Verify the "Revenue · per unit" field against the brand's FDD Item 19 detail tables before relying on this output.

Store EBITDA · annual
$230K
EBITDA margin
12.0%
Total invested
$185K
Payback
10 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Heating + Air Paramedics units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$1.9M

on $9.6M purchase

Total debt

$7.7M

SBA $4.8M + senior + seller note

Overview

About

Franchisees operate HVAC service businesses providing heating, cooling, and air quality maintenance to residential and commercial customers. Day-to-day operations include scheduling service calls, diagnosing equipment issues, performing repairs and maintenance, managing technician teams, and handling customer billing and follow-up.

CEO
Theodore Demarino
Founded
2021
FDD year
2026
States available
7

Item 7 · what it costs

The Vitals

Total investment
$101K – $193K
All-in to open one unit
Liquid capital
$25K – $50K
Cash you must have on hand
Franchise fee
$40K
Royalty
5.0%
Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$1.9M
Per unit, per year
Median gross sales
$1.7M
Item 19 type
Gross Consumer Sales
Sample size
3 units
vs category median 20 · small
Range (low → high)
$392K$3.7M
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank38th
vs Home Services - Plumbing & HVAC peers
Investment cost rank29th
Lower investment ranks lower (better)
Royalty rate rank8th
Lower royalty = lower percentile (better)
Unit count rank25th
vs Home Services - Plumbing & HVAC peers
Risk score rank29th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
22
Opened
7
Last reporting year
Closed
1
Turnover rate
4.5%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Multi-unit owners
1.0%
Net growth (yr3)
+37.5%
Net unit change last year
3-yr CAGR
Outlier (see FDD)
Likely small-sample artifact
2024
22+6
Franchised units
2025
16
Franchised units
2026
5
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 21 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 21 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
2
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

47
Risk · 0-100
STRONG47 / 100

CAUTION: Attractive revenue averages obscured by undisclosed profitability, affiliate regulatory action, and thin unit base with opaque franchisee economics.

Score breakdown · what drove the 47 / 100 rating

  1. 01MEDNet income not disclosed despite $1.92M average revenue — opacity on actual profitability and franchise viability
  2. 02HIGHAffiliate litigation (MaidPro) in Aug 2025 for franchise fee deferral violations suggests potential compliance issues across parent company's franchise portfolio
  3. 03MINORRoyalty floor of $1,500/month ($18K annually) is 1.75% of $1.02M break-even revenue — franchisees must hit significant volume to exceed floor
  4. 04MINORModest unit growth of 37.5% YoY on small base (22 units) — insufficient scale to validate system strength or sustainability
  5. 05MINORHigh initial investment ($100K-$193K) combined with non-transparent profitability creates asymmetric risk

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Population-based
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
1.5 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Ohio

Item 11

Training & Operations

Classroom training
38 hrs
On-the-job training
22 hrs

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

26 numbers

Locked
(501) 681-••••
TX
(608) 266-••••
WI
(651) 539-••••
MN

One-time purchase · CSV download · Validation questions included

FDD download

Heating + Air Paramedics · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above