Service Experts franchise unit economics
Service Experts franchisees run residential HVAC businesses that sell heating and cooling installation, service and maintenance plans to single-family households.
Service Experts franchise at a glance
Service Experts’ Item 19 prints a projected profit and loss for 48 company-owned outlets, split by whether the outlet kept the same general manager for 24 months.
Service Experts’ 48 company-owned outlets averaged $6,881,668 of sales from 15 December 2024 to 13 December 2025, according to Item 19 of Service Experts’ 2026 FDD, issued 17 April 2026. The 48 in that group are 63%* of Service Experts’ 76 company-owned businesses. A Service Experts franchise costs $148,750 to $288,900 to open.
- A Service Experts franchise costs $148,750 to $288,900 to open, according to the brand's 2026 FDD.
These figures come from Service Experts's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Move your books and accounting to Averan →- Keeping the same general manager for two years is worth $698,945 of projected profit. That is $1,183,856 against $484,911, on revenue only 23% higher.
- Gross profit is 41.8% with stable leadership and 35.7% without. Labor costs 28% against 31% of revenue and equipment 22% against 25%.
- Only 15 of the 48 outlets had continuous leadership. So the 8% projected margin describes roughly seven outlets in ten.
- Revenue per single-family household covered runs $11.97 to $29.25 across the quartiles. A standard franchise territory covers up to 60,000 households.
- The average HVAC replacement ticket is $14,224, and a leased job averages $15,190 against $13,406 paid directly. That is 13% more, on 41% of transactions.
How much does a Service Experts franchise make?
The 48 company-owned Service Experts outlets in the 2026 FDD averaged $6,881,668 of revenue. The filing also reports EBITDA for those outlets, and it has no figures for franchised outlets. 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.
Revenue and households
What a territory produces
| quartile | Outlets | Average revenue | Median | High | Low | Above average | Households covered | Revenue per household | Per 60,000-household territory |
|---|---|---|---|---|---|---|---|---|---|
| 1st quartile | 12 | $14,283,971 | $11,817,990 | $25,585,759 | $8,285,605 | 5 (42%) | 488,281 | $29.25 | $1,755,215 |
| 2nd quartile | 12 | $6,333,421 | $6,456,283 | $8,278,266 | $4,946,970 | 6 (50%) | 362,362 | $17.48 | $1,048,690 |
| 3rd quartile | 12 | $4,351,749 | $4,527,784 | $4,845,327 | $3,535,760 | 7 (58%) | 229,333 | $18.98 | $1,138,541 |
| 4th quartile | 12 | $2,557,530 | $2,583,613 | $3,513,530 | $1,426,807 | 7 (58%) | 213,583 | $11.97 | $718,464 |
| All disclosed outlets | 48 | $6,881,668 | $6,346,417 | $25,585,759 | $1,426,807 | 16 (33%) | 323,390 | $21.28 | $1,276,787 |
Revenue, medians, ranges, counts and household coverage are as the brand reported it. The last two columns are marked *, dividing each quarter's revenue by its household coverage and by the coverage expressed in standard 60,000-household territories.
An average disclosed outlet scaled to a standard territory bills $1,276,787. That is $6,881,668 across 5.39 territories' worth of households *. That is the number a prospective franchisee should have instead of the headline $6,881,668, and by quartile, it runs $718,464 to $1,755,215.
Revenue per household runs $11.97 to $29.25. That is 2.4 times, on a measure that already controls for territory size. The first quartile covers 488,281 households and earns $29.25 from each; the fourth covers 213,583 and earns $11.97. So the leading outlets are both bigger and denser, and the density is worth as much as the size.
The Service Experts third quartile of disclosed outlets earned $18.98 per household in fiscal 2025, and the second quartile earned $17.48*. The Service Experts third quartile covers 229,333 households on average, 37% fewer than the 362,362 in the second quartile*.
Only 33% of outlets reach the all-outlet average. That happens because the first quartile stretches to $25,585,759 against an all-outlet median of $6,346,417. Inside the lower three quartiles the medians sit at or slightly above their averages, 101% to 104%. So those groups are evenly distributed and the skew is entirely at the top.
HVAC replacement transactions by payment method
| Transaction type | Share of transactions | Average sale | Median | High | Low |
|---|---|---|---|---|---|
| Direct payment | 46% | $13,406 | $11,340 | $95,890 | $1,313 |
| Leasing | 41% | $15,190 | $14,500 | $41,880 | $1,360 |
| Financing | 13% | $14,057 | $12,599 | $59,895 | $2,000 |
| All transactions | 100% | $14,224 | $12,999 | $95,890 | $1,313 |
As the brand reported it, reordered here by share of transactions.
A leased job averages $15,190 against $13,406 paid directly, 13% more. Leasing covers 41% of transactions. The Service Experts median leased job is $14,500 against $11,340 paid directly, a 28% difference *. Whether that reflects bundled maintenance, larger systems or a different customer, the mix between these three payment methods changes the average ticket.
At an average ticket of $14,224, an average outlet's revenue is roughly 484 replacements *. That is an upper bound, since service and maintenance revenue is included in the total. Scaled to a standard 60,000-household territory that is about 90 installations a year, or fewer than two a week.
The ticket range runs $1,313 to $95,890. That is seventy-three times. Direct payment has both the lowest and the highest transaction in the table. That is what an unbundled price looks like. The customer buying the cheapest possible fix and the customer buying a whole-house system sit in the same column.
Top performers
What separates the top Service Experts performers
Service Experts reports gross revenue for 48 company-owned outlets, split into quartiles of 12. They averaged $6,881,668 with a median of $6,346,417, from $1,426,807 to $25,585,759. The filing has no figures for franchised outlets.
Decided before you open
- Capacity.Capacity is the number of vans, times the hours they run, times how full their schedules are. The build sets how much you can sell.
- Territory.This model sells from a territory quoted at 60,000 households, with no storefront. Population density sets how much driving sits between jobs.
- Opening cost range.Opening costs $148,750 to $288,900, a 1.9× range inside one brand.
Live operating levers
- Sales depend on installations.The sale happens in the customer’s home, so the owner works on how many appointments are booked, how many close, and what the average install is worth.
- Memberships and rebooking.A recurring plan turns appointments into a monthly subscription and keeps the schedule fuller. Rebooking before the customer leaves keeps it full.
Context you underwrite around
- What the filing does not include.Service Experts’ Item 19 gives no figures for franchised outlets. Every sales, cost and margin figure in the document comes from the brand’s own outlets.
- Sales spread in the category.Across 66 Home Services brands in this library, the top group sells 8.9× the bottom at the typical brand, and a median 35% of locations reach their own average *. Service Experts’ own spread is in the tables on this page.
Fees and what it costs to open
What the fees come to
| Territory equivalent | Revenue | Royalty at 6% | Brand fund at 1% | Local marketing at 6% | Technology and accounting | Total | Share of revenue |
|---|---|---|---|---|---|---|---|
| 1st quartile equivalent | $1,755,215 | $105,313 | $17,552 | $105,313 | $13,260 | $241,438 | 13.8% |
| All-outlet equivalent | $1,276,787 | $76,607 | $12,768 | $76,607 | $13,260 | $179,242 | 14.0% |
| 3rd quartile equivalent | $1,138,541 | $68,312 | $11,385 | $68,312 | $13,260 | $161,269 | 14.2% |
| 2nd quartile equivalent | $1,048,690 | $62,921 | $10,487 | $62,921 | $13,260 | $149,589 | 14.3% |
| 4th quartile equivalent | $718,464 | $43,108 | $7,185 | $43,108 | $13,260 | $106,661 | 14.8% |
| At the minimum marketing charge | $530,000 | $31,800 | $5,300 | $31,800 | $13,260 | $82,160 | 15.5% |
Ours, applying the filed rates to each quarter's revenue scaled to a single 60,000-household territory.
Percentage fees are 13% of sales before flat charges. That is 6% royalty, 1% brand fund and a 6% local marketing requirement. The company statements show marketing already running at 6.07% and 6.33% of revenue, so the requirement is being met, even though the franchisor recommends 10%.
The weekly royalty minimum reaches $500 from month nineteen. That is $26,000 a year, which is 6% of $433,333, so a territory below that revenue pays a fixed royalty. Add the $31,800 minimum marketing charge at 60,000 households and a slow-starting territory owes $57,800 of royalty and marketing before a single percentage point applies *.
The Service Experts royalty minimum is nil for the first six months. The minimum royalty is nil through the sixth full calendar month and steps to $200 a week thereafter. It recognizes that an HVAC territory takes a season or two to build a customer base.
What it costs to open a territory
| Item | Low | High |
|---|---|---|
| Franchise fee | $59,900 | $59,900 |
| Additional funds, three months | $30,000 | $70,000 |
| Pre-opening and grand opening marketing | $25,000 | $35,000 |
| Building work | $0 | $20,000 |
| Vehicles and vehicle signage | $6,000 | $15,000 |
| Interior and exterior signage | $2,500 | $15,000 |
| Rent | $0 | $12,000 |
| Office furniture and equipment | $1,500 | $10,000 |
| Business insurance | $4,000 | $9,000 |
| Machinery, tools and equipment | $4,500 | $9,000 |
| Travel for initial training | $4,000 | $6,000 |
| Information technology systems | $3,600 | $6,000 |
| Training fee | $5,000 | $5,000 |
| Professional fees | $2,000 | $5,000 |
| Business licenses | $250 | $5,000 |
| Initial inventory | $0 | $5,000 |
| Security and utility deposits | $500 | $2,000 |
| Total | $148,750 | $288,900 |
As the brand reported it, reordered here by size.
Discounts available
- Service Experts charges $109,900 for 2 territories, $154,900 for 3 and $194,900 for 4 when licensed together with the first franchise agreement.
- Service Experts takes 10% off the first franchise's fee for honorably discharged U.S. or Canadian veterans.
- Service Experts takes 10% off the first franchise's fee when at least 50% is owned by a law enforcement officer, firefighter, doctor, nurse, paramedic or EMT.
From Item 5 of the Service Experts 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
The build is 0.12 to 0.23 times a year of a standard-territory-equivalent revenue. That is $148,750 to $288,900 against $1,276,787 *. That is among the lightest ratios in this library. That is because the business is trucks and technicians, rent runs $0 to $12,000 and building work $0 to $20,000.
$25,000 to $35,000 of opening marketing is 17% to 12% of the build. It is the third-largest Service Experts line, after the franchise fee and working capital (cash to run the business day to day). On a business whose ongoing marketing requirement is 6% of revenue and whose franchisor recommends 10%, the opening spend is a down payment on a customer base.
Working capital is $30,000 to $70,000 across three months. Against a standard-territory-equivalent cost base: at all-outlet ratios, cost of sales and overhead on $1,276,787 would run roughly $1,058,000 a year, so three months is about $265,000 *. The reserve covers a quarter of that at the high end. That is the gap to plan around. The nil royalty and marketing minimums in the first six months soften the opening.
Leadership and the profit line
Profit and loss by general manager tenure
| Line | Continuous leadership (15 outlets) | Share | Leadership gap (33 outlets) | Share | Difference in dollars |
|---|---|---|---|---|---|
| Sales | $7,896,409 | 100% | $6,420,421 | 100% | $1,475,988 |
| Cost of sales, labor | $2,240,428 | 28% | $1,977,506 | 31% | $262,922 |
| Cost of sales, equipment and parts | $1,759,940 | 22% | $1,634,060 | 25% | $125,880 |
| Cost of sales, other | $595,565 | 8% | $518,714 | 8% | $76,851 |
| Gross profit | $3,300,476 | 42% | $2,290,141 | 36% | $1,010,335 |
| Compensation | $695,420 | 9% | $638,756 | 10% | $56,664 |
| Marketing | $499,608 | 6% | $389,512 | 6% | $110,096 |
| General office | $226,470 | 3% | $200,883 | 3% | $25,587 |
| Vehicles and facilities | $129,113 | 2% | $113,389 | 2% | $15,724 |
| Total selling, general and administrative | $1,550,611 | 20% | $1,342,541 | 21% | $208,070 |
| EBITDA | $1,749,865 | 22% | $947,600 | 15% | $802,265 |
| Imputed royalty at 6% | $473,785 | n/a | $385,225 | n/a | n/a |
| Imputed brand fund at 1% | $78,964 | n/a | $64,204 | n/a | n/a |
| Imputed technology and accounting fees | $13,260 | n/a | $13,260 | n/a | n/a |
| Pro-forma profit | $1,183,856 | 15% | $484,911 | 8% | $698,945 |
Dollar figures and the rounded share percentages are as the brand reported it; the difference column is marked *.
Two years with the same general manager is worth $698,945 of projected profit. That is $1,183,856 against $484,911, 2.4 times, on revenue only 1.23 times higher *. Very few filings in this library isolate a management variable at all, and fewer still put a number on it. This one does, and the number is larger than most brands' entire annual profit.
Gross profit is 41.8% with continuous leadership and 35.7% without, 6.1 points. That is worth $484,000 a year at the higher revenue level *. The gap sits in both cost-of-sales lines: labor at 28% against 31% of revenue and equipment and parts at 22% against 25%. A settled manager is buying better and scheduling better, and the two effects are roughly equal in size.
Only 15 of the 48 outlets kept a manager for the full two years. That is 31%. So the 8% projected margin describes the ordinary case and the 15% describes the exception. For a prospective owner-operator that reframes the whole model. The franchisor's preferred structure has the owner in the general manager's seat. That is the continuity the continuous-leadership column measures.
Marketing runs 6% of revenue in both columns. That is $499,608 and $389,512. That matches the contractual local marketing requirement exactly, which is the greater of 6% of sales or a per-household minimum. So these outlets are spending to the requirement and the filed percentages confirm it.
Selling, general and administrative is 20% and 21%. So the whole of the leadership difference is above the gross profit line. This is unusual: at most brands in this library the higher-selling owners differ in overhead. Here they differ in how well the work is bought and delivered, which is a harder thing to fix from a spreadsheet.
General manager wages sit outside these statements entirely. The compensation line covers management and administrative staff other than the general manager, because the franchisor expects the owner to fill that seat. An owner who hires one instead should deduct that salary from the projected profit figures above before comparing them with anything.
The network of locations
The network of locations
| Year | Franchised at start | Franchised at end | Company at start | Company at end | Total at end | Net change |
|---|---|---|---|---|---|---|
| 2023 | 0 | 0 | 83 | 83 | 83 | 0 |
| 2024 | 0 | 0 | 83 | 91 | 91 | +8 |
| 2025 | 0 | 2 | 91 | 82 | 84 | −7 |
As the brand reported it.
This is a franchise system with two franchised units. Offering began in April 2025. Every figure in the performance section describes company-owned outlets run by the franchisor's affiliate, with franchise fees imputed. That is an honest way to disclose a new offering, and it is also the most important caveat on the page.
Company outlets fell from 91 to 82 during 2025. That is a reduction of nine, against an increase of eight the year before. Some of that movement is the refranchising program, under which company centers are sold to franchisees. So a prospective owner should ask how many of the nine left the group that way and how those units have since performed.
The 48 disclosed outlets are 63% of the 76 corporate businesses. The other 28 were excluded because a significant share of their revenue comes from services outside the franchise offering, commercial work in the main. So the published figures describe the residential-weighted end of the company estate.
Territory is measured in single-family households, up to 60,000 for a standard license. Beyond that the franchise fee rises by a dollar a household and both the royalty minimum and the marketing minimum scale with it, $0.0083 a week per household above 60,000 on the royalty and $0.53 a year per household on marketing.
Questions we get asked
Questions owners ask.
How much does a Service Experts franchise make?
Service Experts’ 48 company-owned outlets averaged $6,881,668 of sales from 15 December 2024 to 13 December 2025, according to Item 19 of Service Experts’ 2026 FDD, issued 17 April 2026. The 48 in that group are 63%* of Service Experts’ 76 company-owned businesses. A Service Experts franchise costs $148,750 to $288,900 to open.
What should a Service Experts territory be billing?
The 48 disclosed outlets averaged $6,881,668 of sales with a median of $6,346,417, ranging from $1,426,807 to $25,585,759. But those outlets cover an average of 323,390 single-family households. That is 5.39 standard franchise territories. So scaled to a standard 60,000-household territory the average is $1,276,787. By quartile, scaled territories averaged $1,755,215, $1,048,690, $1,138,541 and $718,464. Revenue per household runs $11.97 to $29.25.
What is a realistic margin at Service Experts?
Outlets that kept the same general manager for 24 months averaged 42% gross profit, 20% selling and administrative expense, 22% profit and 15% projected profit after imputed franchise fees. Outlets with a leadership gap averaged 36%, 21%, 15% and 8%, and only 15 of 48 sat in the first group. Those figures all sit before general manager wages, depreciation, amortization and lease payments, and before vendor rebates on equipment, which the affiliate keeps centrally.
What fees does Service Experts charge?
Service Experts charges a 6% royalty on sales collected weekly, a Brand Fund contribution currently 1% and capable of rising to 2%. The local marketing requirement is the greater of 6% of sales or $0.53 a year per single-family household, $31,800 at a 60,000-household territory. That is 13% of revenue plus $13,260 of imputed technology and accounting fees, or roughly 14% at a standard-territory-equivalent revenue of $1,276,787. The royalty has a weekly minimum of nil through month six, $200 from month seven and $500 from month nineteen.
What is the average job worth at Service Experts?
A Service Experts HVAC replacement averages $14,224, with a median of $12,999 and a range from $1,313 to $95,890. By payment method, leasing averages $15,190 on 41% of transactions, financing $14,057 on 13% and direct payment $13,406 on 46%. Leasing is provided by an affiliate under the Advantage name and bundles maintenance and repair cover. These figures cover replacements only and exclude service and maintenance revenue.
Who does bookkeeping for a Service Experts franchise?
The benchmark set here is unusually precise, so build the close to match it line for line. The three cost-of-sales lines are where the money is. Labor takes 28% to 31% of revenue, equipment and parts 22% to 25% and other costs 8%. The whole difference between a 15% and an 8% projected margin sits in those first two. Two presentation points matter. General manager wages sit outside the filed statements, so a Service Experts owner who hires one has to record that salary on its own line for the comparison to hold. Vehicle and premises lease payments also sit outside the filed statements, so a leased fleet needs its own line. Service Experts collects the royalty and brand fund weekly against a monthly close, and the royalty has a minimum that steps at months seven and nineteen. The local marketing requirement is the greater of a percentage and a per-household amount, three schedules that each need testing. Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team.
- The filing gives no profit figure for franchised outlets. Service Experts reports EBITDA only for its own company-owned outlets.
Questions worth putting to Service Experts
These are questions the Service Experts filing leaves open. An owner or a buyer can put them to Service Experts directly.
- What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
- What did the highest and lowest locations sell last year, and what explains the gap?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- What do the fees add up to as a share of sales at the average location, once minimums and technology charges are counted?
- How many Service Experts locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check 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.
Launch the diagnostic →Where is your gross profit at Service Experts?
We review your unit economics, cash forecast and reporting, built around the three cost-of-sales lines that decide this model.
Talk to AveranWhere these figures come from.
Every figure here comes from Service Experts Franchising LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear, the figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Service Experts® is a registered trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Service Experts Franchising LLC, 2026 Franchise Disclosure Document, issued 17 April 2026.
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Service Experts reads against the rest of the mechanical trades group: Aire Serv · Benjamin Franklin Plumbing · Mister Sparky · Mr. Electric · Mr. Rooter · One Hour Heating & Air Conditioning. 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?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- My payroll percentage keeps climbing. Is that a payroll problem?It shows how to tell whether payroll is rising or revenue is falling.
- I run several locations. Which ones actually make money?It shows each location's contribution to profit and the reporting it takes to see it.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.