TemperatureProFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A TemperaturePro franchise requires a total initial investment of $444K – $484K, including a $148K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.1M[2]. SBA 7(a) loans show a 21.1% charge-off rate across 36 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $444K – $484K
- 77th pct Home Services
- Avg gross sales
- $2.1M
- 43rd pct Home Services
- Royalty
- 6.0%
- 13th pct Home Services
- Units
- 24
- 29th pct Home Services
- SBA default
- 21.1%
- system-wide median varies by category
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 4.6x in gross revenue, well above the typical 1.5-2.5x range.
21.1% of SBA loans charged off across 36 loans, above the 16% franchise average.
Franchised units fell from 29 to 23 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $444K – $484K including a $148K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.1M/year.
- Verdict F (Bottom Quintile) with a risk score of 100/100. SBA loan charge-off rate of 21.1% across 36 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- SystemForward America, LLC
- Ultimate parent
- None
- Predecessor
- is The LSR Group
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Donald B. Marks
- CEO experience
- 30 yrs
- Years in role or industry
- Incorporated in
- LA
- HQ
- 1018 Harding Street, Suite 101, Lafayette, Louisiana 70503
- Auditor
- Kolder, Slaven & Company, LLC
- Audited financials
- Franchisor revenue
- $5.3M
- vs $5.2M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
TemperaturePro franchisees operate HVAC repair, maintenance, and installation services—likely managing technician teams, customer acquisition via local marketing, service dispatch, and emergency calls. Day-to-day involves scheduling, quality control, invoicing, and inventory management for heating/cooling systems.
- CEO
- Donald B. Marks
- Headquarters
- LA
- Founded
- 2003
- FDD year
- 2025
- States available
- 14
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $148K | $148K |
| Working capital (3–6 mo) | $130K | $150K |
| Equipment, build-out, other | $167K | $186K |
| Total initial investment | $444K | $484K |
Source: TemperaturePro 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$254K
12.0% margin
Unlevered ROIC
42%
EBITDA / total invested capital
Payback
29 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $444K – $484K
- Below avg, review vs category
- Liquid capital req'd
- $130K – $150K
- Below avg, review vs category
- Franchise fee
- $148K – $148K
- Below avg, review vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $12K |
| Renewal fee | $0 |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $2.1M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Gross Annual Revenue
- Sample size
- 19 units
- vs category median 25
- Range (low → high)
- $135K→$4.1M
- Cohort dispersion (min → max)
- Quartile band
- $246K→$2.4M
- Bottom 25% → top 25%
- Transparency tier
- none
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 0 / 5
- vs category median 4 / 5 · below
Compared against 349 Home Services brands
Revenue is 4.6x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Home Services averages
How TemperaturePro Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 24
- Opened
- 1
- Last reporting year
- Closed
- 4
- Turnover rate
- 16.7%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (yr3)
- -11.5%
- Net unit change last year
- 3-yr CAGR
- -20.7%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 6
- Terminated (3yr)
- 3
- Transfers (3yr)
- 3
- Transfer rate
- 12.5%
- Owners selling to other franchisees
- Termination rate
- 12.5%
- Franchisor-initiated terminations
- Ceased ops
- 25.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Indiana
- Michigan
- Minnesota
- New York
- Rhode Island
- South Dakota
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 36
- Loan volume
- $9.3M
- Median loan
- $287K
- 50th percentile
- Charge-off rate
- 21.1%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 78.9%
- 5-yr charge-off
- 10.0%
- Loans approved 2021+
- Active lenders
- 19
- Defaults
- 4
Vintage analysis
TemperaturePro charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into TemperaturePro's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 11-year lending trend
Instant access. No subscription.
A 21.1% charge-off rate means roughly 1 in 5 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
TemperaturePro presents meaningful risk due to declining unit count, missing financial disclosures, and high upfront costs relative to a small franchise system.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kolder, Slaven & Company, LLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 100 / 100 rating
- 01MED11.5% unit decline YoY indicates system contraction and potential market saturation or franchisee dissatisfaction
- 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation—critical gap for $444K+ investment
- 03MINORHigh franchise fee ($147,500) combined with 6% royalty creates significant break-even hurdle with opaque unit economics
- 04MEDOnly 24 units remaining suggests limited brand recognition, operational support infrastructure, and peer network
- 05MEDProtected territory alone does not offset shrinking franchise base and undisclosed profitability metrics
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Zip Code |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 500,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Louisiana |
| Jury trial waiver | Yes |
| Governing law | Louisiana |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 80 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- Site selection
- franchisor
- POS system
- Service Titan, Inc.
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Service Titan, Inc.
Item 20 · call current owners
Franchisee Contacts
16 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
TemperaturePro · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a TemperaturePro franchise?
The total investment to open a TemperaturePro franchise ranges from $444K – $484K, with an initial franchise fee of $148K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do TemperaturePro franchise owners earn?
According to Item 19 of the TemperaturePro FDD, the average gross sales per unit is $2.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is TemperaturePro's franchise failure rate?
Based on SBA 7(a) loan data, TemperaturePro has a charge-off rate of 21.1% across 36 loans, meaning 21.1% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many TemperaturePro franchise locations are there?
As of their most recent FDD filing, TemperaturePro has 24 total units in the United States, including 29 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is TemperaturePro a good franchise to buy?
FranchiseVerdict rates TemperaturePro as a F-grade franchise with a risk score of 100 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.