FranchiseVerdict
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FV-02284·STRONGExcellent91

Service Experts

Home Services - Plumbing & HVACFranchising since 2025Website
Investment
$146K – $285K
67th pct Plumbing & HV…
Avg revenue
$6.3M
54th pct Plumbing & HV…
Royalty
6.0%
21st pct Plumbing & HV…
Units
89
58th pct Plumbing & HV…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $146K – $285K including a $60K franchise fee, 6.0% ongoing royalty.
  • Average unit revenue of $6.3M/year (median $6.3M). Estimated payback in 0.4 years.
  • Rated STRONG with a risk score of 32/100. SBA loan default rate of 0.0% across 81 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Service Experts Franchising LLC
Parent company
Brookfield Asset Management
Incorporated in
Delaware
HQ
3400 N. Central Expressway, Suite 410, Richardson, TX 75080
Auditor
Ernst & Young LLP
Audited financials
Franchisor revenue
$0
vs $0 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 Service Experts unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $6,326,097
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: $146K–$285K
Working capital
$
FDD reports $30K–$70K

Unlevered ROIC · per unit

262%

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
$696K
EBITDA margin
11.0%
Total invested
$265K
Payback
5 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 Service Experts units return on equity?

Edit assumptions

Equity IRR · 5-yr

27.1%

3.32× MOIC

Year-1 DSCR

3.02×

EBITDA ÷ debt service

Equity required

$12.7M

on $25.3M purchase

Total debt

$12.6M

SBA $5.0M + senior + seller note

SBA 7(a) request ($12.7M) exceeds the $5M program cap. Excess capped automatically; backfill via conventional or equity.

Overview

About

Service Experts franchisees operate as HVAC, plumbing, and home services providers, dispatching technicians to residential and commercial customers for installations, repairs, and maintenance contracts. Daily operations involve managing service calls, technician scheduling, customer invoicing, and local marketing to build recurring revenue streams.

Founded
1996
FDD year
2025
States available
29

Item 7 · what it costs

The Vitals

Total investment
$146K – $285K
All-in to open one unit
Liquid capital
$30K – $70K
Cash you must have on hand
Franchise fee
$60K
Royalty
6.0%
Percentage of Gross Revenue · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical
Payback period
0.4 yrs
From v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$6.3M
Per unit, per year
Median gross sales
$6.3M
Item 19 type
Gross Revenue
Sample size
38 units
vs category median 20
Range (low → high)
$1.8M$19.2M
Cohort dispersion
Transparency
10 / 5
vs category median 4 / 5 · above
Revenue rank54th
vs Home Services - Plumbing & HVAC peers
Investment cost rank67th
Lower investment ranks lower (better)
Royalty rate rank21th
Lower royalty = lower percentile (better)
Unit count rank58th
vs Home Services - Plumbing & HVAC peers
Risk score rank0th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
89
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
89
Corporate units in the system
% franchised
0%
vs corporate-owned
2023
0+8
Franchised units
2024
0
Franchised units
2025
0
Franchised units

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

Item 20 · 15 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
Available · 15 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
81
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

32
Risk · 0-100
STRONG32 / 100

Moderately risky HVAC/plumbing service franchise with opaque financial data, stagnant unit count, and high investment-to-income ratio requiring careful franchisee validation.

Score breakdown · what drove the 32 / 100 rating

  1. 01MINORUnknown unit growth trajectory with only 89 units suggests stagnant or declining system despite 10-year maturity
  2. 02MINORNo Item 19 financial performance disclosure limits validation of claimed $485K avg net income
  3. 03MINORHigh initial investment ($145-285K) against modest net income creates 30%+ payback period with execution risk
  4. 04MINOR6% royalty + minimum royalty structure unclear on minimum threshold, potentially punitive for slower-ramping franchisees
  5. 05MINORService-based business model dependent on labor costs and local market saturation with protected territory uncertainty

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Zip Codes
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Texas

Item 11

Training & Operations

Classroom training
105 hrs
On-the-job training
40 hrs
POS system
ServiceTitan FSM
Operating tech stack

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

18 numbers

Locked
(213) 576-••••
CA
(360) 902-••••
WA
(517) 335-••••
MI

One-time purchase · CSV download · Validation questions included

FDD download

Service Experts · FDD (2025) PDF

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