One Hour Heating and Air

What they say about themselves

Since 2003, One Hour Heating & Air Conditioning has provided a way for the current owners of HVAC companies to extend their reach and has allowed new business owners a trusted way to enter the industry. Our team is focused on helping business owners receive the tools and support they need to provide the quality heating and AC repair, installation, and maintenance services that the One Hour brand is known for. The results have been incredible: we’ve helped over 90 franchisees bring the best HVAC services possible to over 350 locations, and we’re not even close to done!

Facts:

• Established: 2003

• First Unit Franchised: 2003

• Franchised Units: 385

• Company Owned Units: 28

• Cash Investment: $43,000

• Total Investment: $129,100 - $270,400

• Minimum Net Worth: $150,000

• Franchise Fee: $43,000

• Royalty: 6%

• Ad: 1.5%

• Average Number of Employees: 3-5

Customer & Market Focus

Their primary customers are homeowners needing immediate assistance when heating or cooling systems fail. Franchisees also occasionally service small commercial properties like strip malls or churches, primarily through referrals, although residential work remains the primary focus.

Revenue Streams

One Hour franchisees benefit from three main revenue streams:

• Service and repairs: immediate repair work for HVAC systems.

• Equipment replacements and installations: selling and installing new HVAC equipment.

• Comfort Club subscriptions: recurring monthly payments from homeowners for regular maintenance. This can grow to be a substantial part of the business but is a much smaller part of the business compared to servicing, repairing, and replacing HVAC systems.

What differentiates them from competitors?

It is very difficult to have something substantially different than competitors. To be successful, you need great marketing to bring in calls and you need great employees to offer quality service. One Hour Heating and Air has a marketing team to help with customer acquisition, a call center to ensure someone picks up every time, and their training ensures you can train and retain enough employees for you to grow.

One Hour distinguishes itself through its acclaimed "Success Academy," an extensive training program designed to rapidly recruit, train, and retain skilled technicians. This allows an apprentice to become a skilled technician over the course of a few years which allows you to retain employees as they develop in their career.

Additionally, they have a close relationship with the military transition office to help them bring on transitioning veterans who are trained by the military in HVAC and are looking for civilian jobs.

Operations & Growth

Owner Roles & Team Building

Most franchise owners aren't technicians themselves. Instead, they focus on hiring, training, and leading their teams. Franchisees manage operations, maintain company culture, and oversee the quality of service rather than directly handling technical tasks.

Onboarding & Support (120-Day Launch)

The comprehensive 120-day startup phase, known as "Shore Start," ensures franchisees launch smoothly, on time, and on budget. This program covers all essential aspects: acquiring vehicles, licensing, marketing strategies, software implementation, and team training. Remarkably, most franchisees generate revenue within their first two weeks.

Location Requirements

Franchise locations typically start with approximately 1,000 sq ft warehouse spaces, intended for storing inventory, equipment, and team meetings. Franchisees are encouraged to start with short-term leases, allowing for flexibility and growth.

Ongoing Franchise Support

Franchisees receive ongoing support across marketing, financial management, recruitment, call center operations, and access to discounted pricing through vendor networks. Regular coaching and daily performance monitoring are provided to help franchisees succeed.

Owner Profile & Culture Fit

Ideal Franchisee Traits

Successful franchisees are coachable, team-oriented individuals who closely follow established systems. HVAC experience isn’t required. Here is what they do look for in a franchisee:

• Willingness to follow a system

• Passionate about providing excellent customer service

• Strong leadership skills

• Sales/Management experience

Veterans & Community Involvement

Franchisees are encouraged to engage deeply with their local communities through events, sponsorships, and initiatives. This brings awareness of your brand to the local market.

Failures & Why They Happen

Though failures are uncommon, they typically result from franchisees not adhering to the system. For example, franchisees attempting to answer calls instead of using the call center or just a failure to adhere to brand guidelines.

Financial Model & Performance

Start-Up Costs & Territory Info

Initial investment:

• Owner-operator model: approximately $235K.

• Semi-absentee model: approximately $320K (includes a manager’s salary).

Additional territories cost roughly $100K each, covering extra vehicles and marketing. Territories consist of zip codes with at least 100,000 residents and sufficient household income. Warehouse location and leasing costs are also carefully considered.

Revenue Metrics & KPI Tracking

Average franchise revenue stands at $4.4 million annually, with top franchisees exceeding $40 million. Franchisees receive daily reports monitoring critical KPIs such as revenue per vehicle, appointment conversion rates, and customer interactions.

Recurring Revenue – Comfort Club

The Comfort Club offers customers two annual maintenance visits, priority scheduling, and discounts for a monthly fee. About 33% of first-time customers subscribe, and 85% renew annually. Some franchisees generate over $1 million annually from Comfort Club alone.

Purchasing Power & Vendor Discounts

Franchisees benefit from One Hour's massive $2 billion purchasing network (Bymax), significantly reducing costs. An owner generating $8 million annually saved $600K through this network—offsetting franchise fees and enhancing profitability.

Item 19 from the 2024 FDD

System Growth & Exit Potential

New Franchise Growth Rate

One Hour added 31 new locations last year and expects similar growth annually. About 90% of new franchisees come from non-HVAC backgrounds.

Territory Expansion & Tuck-Ins

Growth primarily involves opening new territories. However, some franchisees expand by acquiring small independent HVAC businesses, integrating them into the One Hour system (known as tuck-ins).

Exit Options

Franchisees have flexible exit strategies. Smaller operators typically sell to other franchisees, while larger franchisees (10+ territories) may attract private equity buyers. Recent significant acquisitions include franchise sales valued at $108 million and $40 million.

Additional Considerations

Semi-Absentee Ownership

Roughly half of One Hour franchisees operate semi-absentee, dedicating around 15–20 hours weekly to management oversight. They remain actively engaged through budget approvals, KPI reviews, and attending regular meetings.

Corporate Ownership: Authority Brands

One Hour is a subsidiary of Authority Brands, backed by private equity firm Apex. Authority Brands provides substantial financial and operational support, recently investing over $22 million in franchisee assistance. One Hour represents around 25% of Authority Brands' portfolio, with ambitious plans to double its size within five years.

Validation Process

The pre-signing validation process lasts about five weeks. Prospective franchisees thoroughly examine the franchise disclosure documents (FDD), evaluate financial details, and interact with current franchisees. This transparent validation process ensures franchisees make informed, confident decisions about their investments.

This thorough overview offers clarity on the One Hour Heating & Air Conditioning franchise, supporting potential franchisees in evaluating this opportunity effectively.

Analysis

This is a solid franchise in a needed industry. Their buying power, training programs, and overall support is what one expects when they think of franchising. Franchisees have proven to be able to grow and exit for very large sums and there are buyers for such exits. Being part of Authority Brands comes with some benefits of being part of a platform but also will come with the potential risks of being sold to a new private equity company that may change the culture. Their ability to be owned by someone who keeps their job is a testament to the systems and training they have in place as well. I would rank One Hour Heating and Air as an A+ franchise.