What does a One Hour territory bill?

The 88 franchisees reporting all of 2025 billed $359,273,411 across 364 territories, an average of $987,015 each. By quartile the per-territory averages run $3,062,355, $1,218,365, $618,508 and $139,724, and 213 of 364 territories beat the system average.

What does a franchisee bill?

An average of $4,082,652 with a median of $2,217,669, ranging from $93,209 to $48,865,630. The top quarter averages $11,509,564 across 7.82 territories each; the bottom quarter averages $483,742 across 2.64.

What does the brand take?

A 6% royalty, never less than $18,000 a year. A brand fund of 1.5% of the first $5,000,000 of sales in a year, falling to nothing above $20,000,000. Plus technology at $100 a month. On top of that the agreement requires 6% of revenue spent on local marketing. At the system average that totals $552,358, or 13.53% of revenue.

How much revenue keeps the territory?

$300,000 a year, from the third anniversary of opening. Falling short gives the franchisor the right to require a revenue improvement program and, after that, to shrink the territory or end the agreement. The bottom quarter of territories averages $139,724, which is 46.6% of the test.

Is the system growing?

Territories went 352 to 378 to 405 to 418 across three years, with openings of 45, 38 and 30 against departures of 19, 11 and 17. Systemwide sales rose 1.9% over the two years to 2025 while territories rose 8.0%, so revenue per territory fell 5.7%. sales same-store sales across a fixed 348 territories rose 8.4% in 2025.

What does it cost to open?

$143,273 to $286,702 for one 100,000-person territory, of which $43,000 is the franchise fee and $60,000 to $90,000 is three months of working capital. Fees actually collected during 2025 ran $22,028 to $67,408, reflecting population above 100,000 and the veteran, expansion and diversity discounts.

Breakdown

One Hour Heating & Air Conditioning franchise unit economics

One Hour Heating & Air Conditioning franchisees sell residential and light commercial HVAC service, repair and replacement across territories of roughly 100,000 people, and most hold several. The 88 franchisees that reported all of 2025 billed $359,273,411 across 364 territories, $4,082,652 per franchisee and $987,015 per territory. A 6% royalty, a brand fund starting at 1.5% and a required 6% of revenue on local marketing together take 13.53% at the average franchisee.

By Scott Engler · Averan Advisors · Source: One Hour Air Conditioning Franchising SPE LLC, 2026 Franchise Disclosure Document (FDD) · Updated 22 September 2026

Where these figures come from

Primary source: One Hour Air Conditioning Franchising SPE LLC, 2026 Franchise Disclosure Document
Items read: Items 5 and 6 for fees; Item 7 for cost to open; Item 19 for sales and any profit figure; Item 20 for the location count
Population: 88 of 418 locations
Our calculations: Marked on the page with an asterisk. Method
Last reviewed: 26 September 2026

Disclosure-based. Not a forecast, not an offer to sell a franchise, and not advice.

Key idea

The 88 franchisees who reported all of 2025 billed $359,273,411 across 364 territories. The largest owners run 7.82 territories each and sell $1,472,154 in each. The highest-selling per territory run 1.86 each and sell $3,062,355. Size and sales per territory pull in opposite directions here. Brand charges and required local marketing take 13.53% of revenue at the average franchisee.

Units reporting88 franchisees, 364 territories

Average franchisee$4,082,652

Franchise and marketing fees13.53%

Total investment$143,273–$286,702

Territory count builds the franchisee and thins the territory. The 22 largest franchisees average $11,509,564 across 7.82 territories, or $1,472,154 each; the 22 highest-selling per territory average $3,062,355 across 1.86 territories *.
Brand charges and required local marketing take 13.53% at the average franchisee. A 6% royalty, 1.5% to the brand fund, 6% of revenue spent on local marketing and $1,200 of technology, $552,358 on $4,082,652, and 28.10% at the lowest-selling franchisees *.
The $18,000 minimum royalty is exactly 6% of the $300,000 performance test. The minimum starts a year after opening and the test at the third anniversary *, and the bottom quarter of territories averages $139,724, which is 46.6% of the test.
Revenue per territory fell 5.7% across two years while sales same-store sales rose 8.4%. $923,266 in 2023 to $871,048 in 2025 *, on a territory count up 8.0% from 389 to 420, the system added territories faster than it added revenue.
All 22 top-quarter franchisees began before 2020. And 45 of the 63 territories that opened from 2020 onward sit in the bottom quartile *, against 2 in the top.

How much does a One Hour Heating & Air Conditioning franchise make?

The average One Hour Heating & Air Conditioning unit reported $4,082,652 of revenue in the 2026 FDD, and the median reported $2,217,669. The brand’s disclosure document discloses revenue and not profit, so what an owner keeps depends on the cost structure set out below. Fees come off the top first, at about 13.5% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.

Territories and franchisees

$4,082,652 a franchisee, $987,015 a territory.

The same 88 franchisees are ranked twice: once by revenue per territory and once by total sales. The two rankings describe different businesses, and the distance between them is the operating lesson.

Sales by territory, 2025, as the brand reported it, with territories per franchisee added *Averan calculation
quartile	Franchisees	Territories	Territories each *	Total sales	Average per territory	Highest territory	Lowest territory	Median territory	Territories above the group average
Top 25%	22	41	1.86	$125,556,539	$3,062,355	$7,717,296	$1,798,168	$2,761,642	11 of 41, 27%
Second	22	134	6.09	$163,260,902	$1,218,365	$1,721,422	$899,464	$1,344,808	48 of 134, 36%
Third	22	92	4.18	$56,902,745	$618,508	$868,567	$398,529	$578,084	38 of 92, 41%
Bottom 25%	22	97	4.41	$13,553,225	$139,724	$379,681	$21,819	$242,722	37 of 97, 38%
All 88	88	364	4.14	$359,273,411	$987,015 *	$7,717,296	$21,819	n/a	213 of 364, 59%

Every quartile row is as the brand reported it and reconciles. Each group’s total sales divided by its territories returns its filed average to the dollar, the four totals add to $359,273,411. The four territory counts add to 364.

Sales by franchisee, 2025, as the brand reported it, with revenue per territory added *Averan calculation
quartile	Franchisees	Territories	Territories each *	Total sales	Average per franchisee	Per territory *	Highest	Lowest	Median	Above the group average
Top 25%	22	172	7.82	$253,210,406	$11,509,564	$1,472,154	$48,865,630	$4,370,880	$7,435,302	7 of 22, 32%
Second	22	66	3.00	$66,892,903	$3,040,586	$1,013,529	$4,017,957	$2,231,900	$2,866,281	9 of 22, 41%
Third	22	68	3.09	$28,527,769	$1,296,717	$419,526	$2,203,438	$825,334	$1,258,529	11 of 22, 50%
Bottom 25%	22	58	2.64	$10,642,333	$483,742	$183,488	$806,583	$93,209	$496,337	11 of 22, 50%
All 88	88	364	4.14	$359,273,411	$4,082,652	$987,015	$48,865,630	$93,209	$2,217,669	22 of 88, 25%

This table reconciles end to end.

Size and yield point in opposite directions. The largest franchisees earn $1,472,154 a territory, while the highest-selling per territory earn $3,062,355 from 1.86 territories each *, twice the yield on a quarter of the footprint.

The second quartile by territory holds 134 of the 364. Those 22 franchisees run 6.09 territories apiece at $1,218,365 each *, which is where most of this system’s territory count and $163,260,902 of its revenue sit.

The system differs 354 times over at the territory level. $7,717,296 against $21,819 *, and 524 times at the franchisee level, from $48,865,630 to $93,209.

Use $987,015 as the per-territory average. $359,273,411 divided by 364 *. This is the figure to budget for each territory.

Top performers

What separates the top One Hour Heating & Air Conditioning performers

One Hour Heating & Air Conditioning splits its locations into groups instead of publishing one average. The best group averaged $11,509,564 a year. The worst averaged $483,742. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $2,217,669. The average was $4,082,652. More than half the system is below the number the brand quotes.

Decided before you open

Trade area and site.A 23.8× gap between bands is not an operating gap. Catchment, daytime population and what sits next door set the ceiling before the first customer arrives.
Capacity, fixed at build.capacity is None vans multiplied by hours multiplied by how full they run. What you can sell is set by the build, and the build does not change after opening.
Territory, and how much of it is real.This model sells from a territory rather than a building, quoted at 100,000 people. Two owners with the same brand and different ground are running different businesses, and density decides how much driving sits between jobs.
What you spend to open.Opening costs $143,273 to $286,702, a 2.0× range inside one brand. The high end usually buys more capacity, so the cheapest build is not always the cheapest route to the top band.

Live operating levers

Service calls, the operating driver.This model bills on service calls. A technician finishes only so many calls a day, so the owner works on how many of them turn into paid work and what the average ticket is worth. It is worth watching every week, because by the time it turns up in a monthly close the quarter is half gone.
Fees, and where the minimum bites.Fees run about 13.5% of sales. A minimum sits underneath the percentage, so the low-volume location pays the higher effective rate. The brand charges the weakest locations the most. Work out the sales level where the percentage overtakes the minimum and know which side of it you are on, because the answer changes what an extra dollar of sales is worth.
The first year.This filing shows how a new location builds up, so the ramp can be underwritten from the document rather than assumed. Read two things out of it: the month sales cross the point where costs are covered, and how much cash you fund before that month arrives. Everything before break-even is paid for by you.

Context you underwrite around

The reporting screen.88 of 418 locations are behind these figures. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, so the numbers describe locations that cleared that screen, not the system as a whole.
What the disclosure leaves out.Item 19 publishes no profit or cost data for franchised locations. Anything below the sales line has to come from the franchisor or from owners you call.

Top performers

How far apart the locations are

$11,509,564, the first quartile

This filing does not split its locations into performance bands, so the gap between the highest and lowest One Hour Heating & Air Conditioning location is not disclosed. What it does publish is on the Model and Finance tabs.

Growth and the system

sales same-store up 8.4%, revenue per territory down 5.7%.

Two growth figures answer different questions. sales same-store compares a fixed group of 348 territories with itself. Systemwide divides a growing revenue number by a faster-growing territory count.

Systemwide sales and sales same-store sales, 2023 to 2025, as the brand reported it, with revenue per territory added *Averan calculation
Year	Systemwide sales	Growth	Territories	Revenue per territory *	Change per territory *
2023	$359,150,544	n/a	389	$923,266	n/a
2024	$335,524,270	−6.6%	406	$826,414	−10.5%
2025	$365,840,208	+9.0%	420	$871,048	+5.4%

Sales, growth rates and territory counts are as the brand reported it; revenue per territory and its change are marked *.

Two years added 8.0% more territories and 1.9% more revenue. 389 to 420 against $359,150,544 to $365,840,208 *, which is how revenue per territory landed 5.7% lower.

sales same-store territories bill $1,010,710 against $871,048 systemwide. A gap of $139,662 *, and the whole of it is the mix of new and closing territories sitting inside the systemwide number.

Thirty openings, seventeen departures. (Item 20)

Franchised territory movement, 2023 to 2025, as the brand reported it, with total departures added *Averan calculation
Year	At start	Opened	Terminated	Failed to renew	Ceased for other reasons	Departures *	At end	Transfers
2023	352	45	4	8	7	19	378	21
2024	378	38	6	3	2	11	405	24
2025	405	30	9	2	6	17	418	3

Every column apart from departures is as the brand reported it, and start plus openings less departures returns the filed year-end count in all three years.

Openings fell a third across three years while departures held. 45, 38 and 30 against 19, 11 and 17 *, net additions of 26, 27 and 13.

Transfers dropped from 24 to 3. After 21 and 24 in the two previous years *, which is 0.7% of the system changing hands in 2025 against 5.9% the year before.

What the fees come to

13.53% before a single technician is paid.

The royalty is 6% of sales with an $18,000 annual minimum. The brand fund starts at 1.5% and steps down as calendar-year revenue climbs, reaching 0% above $20,000,000. Local marketing is a spending requirement: 6% of the calendar year’s cumulative revenue, from the third month onward. Technology is $100 a month.

$11,509,564, the first quartile

$11,509,564

$7,435,302, the first-quartile median

$7,435,302

$1,296,717, the third quartile

$1,296,717

What the brand and the marketing requirement take, rates and revenues as the brand reported it, dollars and shares *Averan calculation
Annual sales	Royalty	Royalty rate	Brand fund	Brand fund rate	Local marketing	Technology	All in	Share of revenue
$48,865,630, the highest franchisee	$2,931,938	6.00%	$225,000	0.46%	$2,931,938	$1,200	$6,090,076	12.46%
$11,509,564, the first quartile	$690,574	6.00%	$152,596	1.33%	$690,574	$1,200	$1,534,943	13.34%
$7,435,302, the first-quartile median	$446,118	6.00%	$105,441	1.42%	$446,118	$1,200	$998,878	13.43%
$4,082,652, the system average	$244,959	6.00%	$61,240	1.50%	$244,959	$1,200	$552,358	13.53%
$2,217,669, the system median	$133,060	6.00%	$33,265	1.50%	$133,060	$1,200	$300,585	13.55%
$1,296,717, the third quartile	$77,803	6.00%	$19,451	1.50%	$77,803	$1,200	$176,257	13.59%
$483,742, the fourth quartile	$29,025	6.00%	$7,256	1.50%	$29,025	$1,200	$66,505	13.75%
$300,000, the performance test	$18,000	6.00%	$4,500	1.50%	$18,000	$1,200	$41,700	13.90%
$93,209, the lowest franchisee	$18,000	19.31%	$1,398	1.50%	$5,593	$1,200	$26,191	28.10%

The rates, tiers, the $1,500 monthly minimum royalty and the $100 monthly technology fee are as the brand reported it. The revenue points come from the filed franchisee tables. Every dollar amount and every share is marked *.

The brand fund tiers are worth $507,984 a year to the largest franchisee. $225,000 against the $732,984 a flat 1.5% asks *, relief that starts only above $5,000,000 of calendar-year revenue.

Combining contiguous territories is what unlocks those tiers. A franchisee holding 7.82 territories at $1,472,154 each reaches $11,509,564 and pays 1.33% *, where the same revenue split across separate agreements would sit at 1.5%.

Below $300,000 the royalty becomes a fixed $18,000. The lowest-selling franchisees pays 19.31% *, and its all-in load of $26,191 is 28.10% of what it billed.

Local marketing matches the royalty dollar for dollar at 6%. $244,959 each at the system average *, together 12% of revenue before the brand fund and technology are counted.

Opening and the territory

$143,273 to open, and 41.88% of it is working capital.

Estimated initial investment for one 100,000-person territory, as the brand reported it. The share column is, Item 7 of the 2026 FDD*Averan calculation
Line	Low	High	Share of the low column *
Additional funds, three months	$60,000	$90,000	41.88%
Franchise fee	$43,000	$43,000	30.01%
Vehicles	$8,240	$15,450	5.75%
Professional fees and licensing	$4,635	$20,600	3.24%
Insurance	$4,120	$8,240	2.88%
Rent or lease of real estate	$3,090	$9,270	2.16%
Machinery, tools and equipment	$3,090	$10,300	2.16%
Travel while training	$2,575	$5,150	1.80%
Initial vehicle inventory	$2,575	$8,240	1.80%
Start-up supplies	$2,575	$5,150	1.80%
Vehicle registration fees	$2,266	$4,532	1.58%
Computer, technology and software	$1,854	$4,120	1.29%
Office furniture and equipment	$1,545	$4,120	1.08%
Building work	$1,030	$4,120	0.72%
Office signage	$1,030	$5,150	0.72%
Personal tools for technicians	$1,030	$3,090	0.72%
Decals for consumer units	$309	$515	0.22%
Telephone services	$309	$515	0.22%
Grand opening marketing	$0	$6,000	0.00%
Vehicle upfitting	$0	$5,150	0.00%
Signage for vehicles	$0	$8,240	0.00%
Full-time general or operations manager	$0	$25,750	0.00%
Total	$143,273	$286,702	100%

Amounts are as the brand reported it and the share column is marked *; both columns add to their stated totals to the dollar.

Opening costs 14.5% of what an average territory bills in a year. $143,273 against $987,015 *, and 154% of what a bottom-quarter franchisee bills at the low end of that group.

Everything beyond the fee and working capital is $40,273. Twenty lines at the low end, 28.11% of the total *, a truck, tools, insurance and a license.

$300,000 a year, from the third anniversary.

A territory covers roughly 100,000 people, defined by postal code. Is protected. The franchisor agrees to stay out and to keep other franchisees out while the franchisee holds full compliance, including the performance requirement. From the third anniversary of opening, each franchised business must reach annual sales of $300,000.

The $300,000 performance test against the filed groups. The test and the revenues as the brand reported it, the comparison is *Averan calculation
Group	Revenue	Against the $300,000 test *	Position *
Average territory, all 88	$987,015	3.29×	+$687,015
Third-quartile territory average	$618,508	2.06×	+$318,508
Lowest territory in the third quartile	$398,529	1.33×	+$98,529
Median territory, bottom quartile	$242,722	0.81×	−$57,278
Bottom-quarter territory average	$139,724	0.47×	−$160,276
Lowest territory in the system	$21,819	0.07×	−$278,181

The $300,000 test and the revenue figures are as the brand reported it; the multiple and the position are marked *.

The minimum royalty and the performance test are the same number. $1,500 a month is $18,000 a year, which is 6% of $300,000 *. The minimum the brand charges matches the sales it requires.

Maturity sorts this system harder than geography does. All 22 owners in the top quarter started before 2020. 45 of the 63 territories opened from 2020 onward sit in the bottom quartile *. 301 of the 364 reporting territories started before 2020.

What this filing does not disclose

No profit figure. The filing reports sales and not earnings, so what an owner keeps is not disclosed.
No cost lines. Wages, rent and cost of goods are not broken out, so margin cannot be rebuilt from the document.

Questions worth putting to One Hour Heating & Air Conditioning

The filing answers what it answers. These are the gaps an owner or a buyer should close directly.

What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
What separates the highest-selling locations from the lowest: trade area, years open, size, or the owner?
How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
At what level of sales do the minimum charges stop applying and the percentage take over?
How many One Hour Heating & Air Conditioning locations closed, were sold, or changed hands last year, and why?

Part of our Home & Commercial Services Franchise Finance guide and the Mechanical Trades Franchise Finance guide · Āveran Franchise Resource Center

Run your own numbers.

The Franchise Finance Diagnostic runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. Checks whether you are ready to open another one. It is free and it runs in your browser.

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What is each territory actually returning?

A structured review of your unit economics, cash forecast. Reporting, built around revenue per territory against the $987,015 system average, revenue per technician day. Where your combined revenue sits against the brand fund tiers.

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Where this sits

the franchise library, all 243 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners

The same business, other brands

One Hour Heating & Air Conditioning reads against the rest of the mechanical trades group: Aire Serv · Benjamin Franklin Plumbing · Mister Sparky · Mr. Electric · Mr. Rooter · Plumbing Paramedics. The mechanical trades guide compares all of them on the same figures.

Questions owners ask next

The figures above raise these, and each one is answered on its own page.

At what level of sales does a minimum fee stop costing me more than the percentage?How royalty, ad fund and minimums actually work on a monthly statement.
How much cash do I fund before a new location covers its own costs?A 13-week forecast for the months before break-even.
My payroll percentage keeps climbing. Is that a payroll problem?Usually it is a revenue problem wearing a payroll costume.
Revenue was the highest it has been. Why did profit not move?Where the extra revenue went, line by line.
At what point do spreadsheets stop coping?What changes at around ten units, and why lenders care.

Where to next

Compare brands, every brand in the library on one screen
Running the books across several units
Item 19, how to read Item 19 of an FDD
What Items 5 and 6 must disclose
Fractional CFO, for the forecast behind a second location and the cash plan that carries it
Bookkeeping for franchise owners, what this looks like when someone else keeps the books
Āveran Franchise Resource Center, every breakdown in the library
Bookkeeping, monthly close built around the way your brand reports
Controller, when the numbers need someone reading them as well as recording them

Scott Engler

Founder & Principal, Averan Advisors

Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team. More about the team →

One Hour Heating & Air Conditioning franchise unit economics

How much does a One Hour Heating & Air Conditioning franchise make?

$4,082,652 a franchisee, $987,015 a territory.

What separates the top One Hour Heating & Air Conditioning performers

Decided before you open

Live operating levers

Context you underwrite around

How far apart the locations are

sales same-store up 8.4%, revenue per territory down 5.7%.

Thirty openings, seventeen departures. (Item 20)

13.53% before a single technician is paid.

$143,273 to open, and 41.88% of it is working capital.

$300,000 a year, from the third anniversary.

Questions owners ask.

What does a One Hour territory bill?

What does a franchisee bill?

What does the brand take?

How much revenue keeps the territory?

Is the system growing?

What does it cost to open?

Questions worth putting to One Hour Heating & Air Conditioning

Run your own numbers.

What is each territory actually returning?

Questions owners ask next

Where these figures come from.

What happens next

One Hour Heating & Air Conditioning franchise unit economics

How much does a One Hour Heating & Air Conditioning franchise make?

$4,082,652 a franchisee, $987,015 a territory.

What separates the top One Hour Heating & Air Conditioning performers

Decided before you open

Live operating levers

Context you underwrite around

How far apart the locations are

sales same-store up 8.4%, revenue per territory down 5.7%.

Thirty openings, seventeen departures. (Item 20)

13.53% before a single technician is paid.

$143,273 to open, and 41.88% of it is working capital.

$300,000 a year, from the third anniversary.

Questions owners ask.

What does a One Hour territory bill?

What does a franchisee bill?

What does the brand take?

How much revenue keeps the territory?

Is the system growing?

What does it cost to open?

Questions worth putting to One Hour Heating & Air Conditioning

Run your own numbers.

What is each territory actually returning?

Questions owners ask next

Other mechanical trades brands

Second territories and multi-unit owners, in other categories

Where these figures come from.

What happens next