Varsity Zone franchise unit economics
Varsity Zone franchisees sell and carry out heating, ventilation and air conditioning installation, maintenance and repair for homes and businesses, in protected territories.
Varsity Zone franchise at a glance
The 2026 FDD reports 2025 figures for one franchisee, the only one of 21 open for the whole year, which held six territories: total sales of $953,598 on 185 jobs, a $5,159 average ticket and 55.2% gross profit.
Varsity Zone’s Item 19 covers one franchisee, which held six territories and reported $953,598 of total sales in 2025, according to Item 19 of Varsity Zone’s 2026 FDD, issued 20 April 2026. Fees paid to Varsity Zone come to about 6.99%* of sales. A Varsity Zone franchise costs $224,680 to $290,562 to open.
- A Varsity Zone franchise costs $224,680 to $290,562 to open for one territory, including a $59,500 initial franchise fee, according to the brand’s 2026 FDD.
- Varsity Zone charges a royalty of 5% of collected revenue up to $1,000,000 of calendar year-to-date revenue, 4% to $3,000,000 and 3% above, with a minimum of $500 a month for each territory from the first anniversary.
- Varsity Zone franchisees must spend the greater of $2,000 a month or 5% of monthly gross revenues collected on local advertising, after $20,000 in the first 90 days.
- That Varsity Zone franchisee sold 185 jobs from 378 estimates, a 48.9% close ratio, at a $5,159 average ticket and 55.2% gross profit.
- On Averan’s reading, Varsity Zone’s royalty and the monthly charges paid to the brand or its affiliate come to 6.99% of that franchisee’s 2025 sales*.
- Varsity Zone had 64 franchised territories and no company-owned territories at the end of 2025, up from 6 a year earlier.
These figures come from Varsity Zone's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors. The 6.99% fee share is an Averan calculation.
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Talk to Averan → Averan Varsity Zone Conversion Package →- The revenue figure comes from one franchisee with six territories. 20 of the 21 franchisees were left out because they were not operating for all of 2025. Across six territories, $953,598 is $158,933 a territory*.
- The franchisee closed 48.9% of 378 estimates, for 185 jobs. At a $5,159 average ticket that is about 3.6 sold jobs a week*. Gross profit, after labor, materials and other job costs, was 55.2% of sales.
- Local advertising is required at the same 5% rate as the first royalty tier. At $953,598 each line comes to $47,680 a year*. The $2,000 monthly advertising minimum is the larger amount below $480,000 of annual revenue*.
- The royalty rate falls as year-to-date revenue rises, counted across all of an owner’s territories. 5% applies to $1,000,000, 4% to $3,000,000 and 3% above. The reporting franchisee finished 2025 $46,402 below the 4% tier*.
- The system grew from 6 to 64 franchised territories in 2025. No territories were terminated, not renewed, reacquired or transferred in 2023 to 2025. 18 agreements were signed but not opened at the end of 2025, and 32 openings are projected for 2026.
2025 results
How much does a Varsity Zone franchise make?
| Measure | 2025 |
|---|---|
| Total sales | $953,598 |
| Jobs sold | 185 |
| Average ticket | $5,159 |
| Estimates | 378 |
| Gross profit | 55.2% |
| Close ratio | 48.9% |
As the brand reported it, from figures the franchisee entered in the brand’s software. Franchisees are not required to use generally accepted accounting principles.
The one franchisee open all of 2025 reported $953,598 of total sales. It held six territories, so the figure covers a six-territory business. Divided evenly, that is $158,933 a territory*.
Item 19 leaves out 20 of the 21 franchisees. At 31 December 2025 the brand had 21 franchisees across 62 protected territories, and the FDD says the other 20 were excluded because they were not operational for the entire year.
Gross profit was 55.2% of sales. The FDD defines gross profit as total sales less the cost of labor, materials and costs directly related to the job. On $953,598 that is $526,386 of gross profit*. The FDD states that Item 19 discloses no other cost, expense or profit information.
Sales divided by jobs gives $5,155 a job*. The printed average ticket is $5,159. The FDD defines average ticket as the average spent per transaction, so the two measures may count different transactions.
Results by location
Results by location, 2025
| Measure | Six territories, reported | A territory | A week |
|---|---|---|---|
| Total sales | $953,598 | $158,933 | – |
| Jobs sold | 185 | 30.8 | 3.6 |
| Estimates | 378 | 63.0 | 7.3 |
Per-territory figures divide by six and weekly figures by 52; both are Averan calculations. Item 19 does not report the franchisee’s results territory by territory.
Item 19 does not show how results spread across locations. It reports one franchisee, so there is no average across businesses, no median and no range.
The franchisee wrote 378 estimates and sold 185 jobs. The close ratio of 48.9% is the share of estimates that became invoices. 185 divided by 378 is 48.94%*, which matches.
The franchisee signed on 12 August 2024. It was the only franchisee open for the whole of 2025. Item 20 shows six territories opened in Florida in 2024.
Brand charges
Brand charges
| Charge | Rate or amount | A year at $953,598 |
|---|---|---|
| Royalty | 5% of gross revenue collected to $1,000,000 year to date, 4% to $3,000,000, 3% above; minimum $500 a month a territory | $47,680 |
| Local advertising requirement | Greater of $2,000 a month or 5% of monthly gross revenues collected | $47,680 |
| Brand Fund | Not currently assessed | None |
| Technology fee | $1,000 a month | $12,000 |
| Accounting services | $499 a month, plus $89 a month software per user and $77 a month payroll | $7,980 |
| Contact center | $200 or $300 a month | $2,400–$3,600 |
| Digital management | $500 a month | $6,000 |
| Special software | $300 a month | $3,600 |
| Annual conference | $1,000 a person | $1,000 |
| All listed charges, including local advertising and charges paid to vendors | $128,340–$129,540 | |
| Paid to the brand or its affiliate (royalty, technology fee, $499 a month accounting services fee and conference) | $66,668 |
Averan calculation. Royalty at 5% because 2025 sales stayed under $1,000,000. Monthly charges, the $2,000 advertising minimum and one conference place counted once for the business. One-time setup fees, the $23 per appointment charge on the live-agent contact center and late or collection fees are left out.
The charges paid to the brand or its affiliate come to 6.99% of the reporting franchisee’s sales*. That is $66,668 a year on $953,598*. With local advertising and the charges paid to vendors, the listed charges are $128,340 to $129,540 a year*, or 24.4% to 24.6% of the 55.2% gross profit*.
The royalty rate is set by calendar year-to-date revenue across every territory an owner holds. The FDD says that with more than one franchise agreement, the tier is calculated on cumulative gross revenues collected for all territories. The reporting franchisee’s 2025 sales were $46,402 below the $1,000,000 point where the rate drops to 4%*.
The minimum royalty is $500 a month for each territory, starting at the first anniversary. For six territories that is $36,000 a year, which 5% exceeds above $720,000 of annual sales*. After year five the brand may raise the minimum by up to 10% a year. If the royalty is not paid, the brand may reduce, modify or eliminate the protected territory.
Local advertising is spent by the franchisee and is not paid to the brand unless there is a shortfall. The requirement is $20,000 in the first 90 days of operation, then the greater of $2,000 a month or 5% of monthly gross revenues collected. The brand may require any shortfall to be paid to it. The FDD does not state whether the $2,000 monthly minimum applies once or for each territory.
A Brand Fund is not currently charged. If one is set up, the contribution is capped at 3% of monthly gross revenues collected, and the royalty and Brand Fund together may not exceed the royalty rate in force before the fund began. The brand may also raise the accounting services fee to as much as 0.5% of gross revenues collected.
Cost to open
Cost to open
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $59,500 | $59,500 |
| Vehicles (deposit and first 3 months) | $38,285 | $44,027 |
| Additional funds, 90 days | $20,000 | $40,000 |
| Initial marketing and local advertising, 90 days | $20,000 | $20,000 |
| Brand marketing fee | $15,500 | $15,500 |
| Opening package | $14,720 | $17,670 |
| Initial inventory package | $13,500 | $16,880 |
| Emerging Business Academy | $9,995 | $9,995 |
| Rent and utilities, 90 days | $7,000 | $15,000 |
| Insurance, 90 days | $5,000 | $7,500 |
| ZeePartnerships fee | $5,000 | $5,000 |
| Tuition fee | $4,995 | $4,995 |
| Technology fee | $3,000 | $3,000 |
| Accounting services fee | $2,435 | $2,435 |
| Digital management fee | $1,500 | $1,500 |
| Travel and living while training | $1,500 | $3,500 |
| Professional fees | $1,000 | $10,500 |
| Special software fee | $900 | $900 |
| Contact center fee | $850 | $1,660 |
| Licenses, certificates and permits | $0 | $5,000 |
| Dues and subscriptions | $0 | $1,000 |
| Leasehold improvements | $0 | $5,000 |
| Total | $224,680 | $290,562 |
As printed in Item 7. Both columns add to the printed totals.
One territory costs $224,680 to $290,562 to open. The cover page says this includes $84,995 of fees paid to the franchisor or its affiliates before opening. Two to three territories are estimated at $274,680 to $385,562, and four to five at $349,680 to $465,562.
The vehicle line covers deposits and three months of payments on two vans. Item 7 prices an install van and a service van at $154,671 to $177,871 together, wrapped and fitted out, with a 20% deposit and the rest financed over 60 months at 7.00%. The monthly payment for both is $2,450 to $2,817.
Additional funds of $20,000 to $40,000 cover three months of wages for a general manager and an install technician. The FDD says the estimate does not include an owner’s draw or salary. It suggests $10,000 to $20,000 more for each extra territory.
The business runs from 1,500 to 2,000 square feet of leased office, warehouse or flex space. The location must be secured within 90 days of signing, and the brand may require a collateral assignment of the lease. Owners of several adjoining territories need one location.
The agreement requires opening within 6 months of signing. The FDD says franchisees typically open within 30 days of the third phase of training, which generally takes place 5 months after signing.
The FDD includes a state risk notice on the franchisor’s finances. It says the franchisor’s financial condition, as shown in its Item 21 statements, calls into question its financial ability to provide services and support.
Locations
Locations, 2023 to 2025
| Year | Start | Opened | Terminated | Non-renewed | Reacquired | Ceased, other | End |
|---|---|---|---|---|---|---|---|
| 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2024 | 0 | 6 | 0 | 0 | 0 | 0 | 6 |
| 2025 | 6 | 58 | 0 | 0 | 0 | 0 | 64 |
No company-owned or affiliate-owned outlets in any year. No transfers in 2023 to 2025.
Varsity Zone had 64 franchised territories at the end of 2025. Texas had 17, Florida 11, Arizona 10, North Carolina 8, Georgia 6, Tennessee 6, Colorado 3 and Indiana 3.
Item 20 and Item 19 give different territory counts for the end of 2025. Item 20 counts 64 territories. Item 19 says 21 franchisees were operating across 62 territories at 31 December 2025.
18 agreements were signed but not opened at the end of 2025. The brand projects 32 new franchised territories in 2026.
The franchisor began offering franchises in June 2024. Its predecessor, Amped Services Plus, has run an HVAC business in Lakewood Ranch, Florida since 2001.
Questions we get asked
Questions owners ask
How much does it cost to open a Varsity Zone franchise?
The 2026 FDD estimates $224,680 to $290,562 for one business in one territory, including a $59,500 initial franchise fee. Two to three territories are estimated at $274,680 to $385,562 and four to five at $349,680 to $465,562. The vehicle line covers deposits and three months of payments on two financed vans.
What fees does Varsity Zone charge?
The royalty is 5% of gross revenue collected up to $1,000,000 of calendar year-to-date revenue, 4% to $3,000,000 and 3% above, with a minimum of $500 a month a territory from the first anniversary. Local advertising is the greater of $2,000 a month or 5% of monthly gross revenues collected. Monthly charges include technology at $1,000, accounting services at $499, digital management at $500, special software at $300 and a contact center at $200 or $300. The Brand Fund is not currently assessed.
How much does a Varsity Zone franchise make?
Item 19 reports one franchisee, the only one open for all of 2025. It held six territories and reported $953,598 of total sales, 185 jobs, a $5,159 average ticket and 55.2% gross profit. The FDD publishes no other cost or profit figures.
What close ratio did the Varsity Zone franchisee achieve?
The reporting franchisee wrote 378 estimates in 2025 and closed 48.9% of them, for 185 jobs sold. That is about 7.3 estimates and 3.6 sold jobs a week*.
How many Varsity Zone locations are there?
Item 20 counts 64 franchised territories at the end of 2025, up from 6 a year earlier, and no company-owned territories. Item 19 says 21 franchisees held 62 territories at the same date. 18 agreements were signed but not opened, and no territories have closed or been terminated.
How large is a Varsity Zone territory?
A protected territory typically has about 200,000 people. Population above that is charged at $0.30 a person. The territory is not exclusive, appointments come through a required contact center with no guarantee of assignment, and if more than 5% of gross revenues come from outside the territory the brand may require the purchase of another franchise.
Questions worth putting to Varsity Zone
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does Varsity Zone see in its highest-selling locations, such as territory, years open and staffing?
- 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 Varsity Zone 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. It also checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Reporting for a Varsity Zone owner
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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.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- 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.
Where these figures come from
Every figure here comes from HPB HVAC 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. Varsity Zone is a 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: HPB HVAC LLC, 2026 Franchise Disclosure Document, issued 20 April 2026.