One Hour Heating & Air Conditioning
Formerly known as Franchising SPE
Bottom line
- Total investment $71K – $270K including a $43K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $1.1M).
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
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 ONE HOUR HEATING & AIR CONDITIONING unit return on the cash you put in?
Unlevered ROIC · per unit
56%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 ONE HOUR HEATING & AIR CONDITIONING units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$961K
on $4.8M purchase
Total debt
$3.8M
SBA $2.4M + senior + seller note
Overview
About
Franchisees own and operate local HVAC service centers providing heating, air conditioning installation, repair, and maintenance for residential and commercial customers. Daily operations include managing service technicians, scheduling appointments, responding to emergency calls, invoicing customers, and collecting payments.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 32 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).
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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
ONE HOUR HEATING & AIR presents elevated risk due to opaque financial disclosure, litigation patterns suggesting compliance evasion, and a royalty structure that may incentivize underreporting and squeeze marginal operators.
Score breakdown · what drove the 44 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $1.07M average revenue claim—inability to verify earnings claims
- 02HIGHMultiple litigation cases involving trademark infringement, non-compete violations, and sales underreporting suggest systemic compliance issues
- 03MINORRoyalty structure creates aggressive floor ($1,500/month minimum = $18,000 annually) that pressures small operators and incentivizes underreporting
- 04MINOR9.4% YoY unit growth is modest for a 413-unit system; suggests market saturation or franchisee struggles
- 05MEDHigh initial investment ($71K-$270K) combined with undisclosed net income creates severe opacity around ROI timeline
- 06MINORCollection actions for unpaid fees indicate franchisee financial distress across the system
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
96 numbers
One-time purchase · CSV download · Validation questions included
FDD download
ONE HOUR HEATING & AIR CONDITIONING · FDD (2024) PDF