Aire Serve
Date Incorporation: 1992
Franchising Since: 1992
Headquarters: Waco, Texas
Description: Aire Serve Heating & Air Conditioning installs, maintains, and repairs certain residential and commercial heating, ventilating, air conditioning, and indoor air quality services and equipment, sell and service water-based heating; perform related services and sell related products.
Franchise Offer: The franchise on offer is to own and operate a business that will install, maintain and repair residential and commercial heating, ventilating, air conditioning and indoor air quality equipment, perform related services and sell related products. The franchisee will operate the franchise under the service mark AIRE SERV, the slogan “Your Comfort Company,” and the additional principal service marks, trademarks trade names, logos, emblems, slogans.
Financial Assistance: The franchisor may agree to finance a portion of the initial franchise fee for qualified prospected franchisees under specified terms and conditions. The franchisor’s decision to finance the initial franchise fee will be based in part by the franchisee’s credit-worthiness the collateral the franchisee has available to secure the financing and the franchisor’s then-current financing policies.
Training and Assistance: The franchisor will provide the franchisee and 2 other people with initial training at no additional cost. At least one owner must attend and complete the initial training to the franchisors satisfaction. The initial training will generally last 5 days consisting of approximately 35 hours of classroom training.
Territory: The franchisee’s non-exclusive territory will have a minimum population that is generally at least 100,000 and a maximum population that is generally no more than 1,500,000. A larger population may be allowed under exceptional circumstances.
Term of Agreement and Renewal: The initial franchise term is 10 years. The franchise agreement can be renewed for additional 10-year terms by executing the then-current form of franchise agreement and meeting the other requirements for renewal. The fee for renewal is $2,500.
Obligations and Restrictions: The franchisee must directly perform or supervise the operation of the franchise unless the franchisor consents otherwise. The franchisee must offer and sell only the goods and services which conform to franchisor standards and specifications. The franchisee must offer the goods and/or services that the franchisor designates as required for all franchises and the franchisee may elect to offer other products and/or services.
Total Number of Units: 133 as of 2007
Investment Tables:
Initial Investment:
| Type of Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee | $22,000 | $22,000 + $220 per 1,000 additional population over minimum |
| Vehicle | $2,500 | $25,000 |
| Equipment, Supplies & Inventory | $4,995 | $25,000 |
| Insurance | $1,500 | $3,000 |
| Advertising & Promotional | $15,000 | $50,000 |
| Training, Travel, Lodging & Food | $1,200 | $4,000 |
| Deposits, Permits & Licenses | $0 | $1,400 |
| Additional Funds – 3 Months | $10,000 | $40,000 |
| Real Estate | -0- | -0- |
| Totals | $57,195 | $170,400+ any additional franchise fee + any real estate costs |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| License Fee | 4% to 7% of Gross Sales except for special rates that apply to Specialty Services and “roll-in” sales. In addition, minimum license fees apply. |
| MAP Fee | 2% of Gross Sales except for special rates that apply to Specialty Services and “roll-in” sales. |
| Advertising Cooperative | Will vary, up to 2% of Gross Sales |
| ZWARE Initial Training and Maintenance Fee | $1,599 (for up to 3 named users) plus $250 for each additional pair of named users |
| ZWARE Monthly Support Fee | $161.50 (for up to 3 named users) plus $100 for each additional pair of named users: $125 to $187.50 per hour for additional phone support |
| Initial Training Fee | $1,000 per person for additional trainees |
| Resale Training Fee | If the franchisee buys a franchise from one of the existing franchisees, the franchisor will provide initial training to the franchisee at a cost of $2,500 |
| Training Fee | Then-current training fee, up to $500 per day |
| Annual Convention Registration Fee | Usually $150 to $250 per person with discounts for early registration and a cap on the maximum fee any franchisee must pay. |
| Transfer Fee | The greater of $4,000 or 5% of the sales price |
| Renewal Fee | $2,500 |
| Amendment Fee | $250 |
| Manual Replacement Fee | Currently $100 each |
| Late Fees | $10 per Report |
| Dishonored Check or ACH Draft | $25 |
| Interest | 12% on unpaid balances |
| Audit | Our audit costs if underpayment is 3% or more |
| Failure to Maintain Insurance | Actual cost |
| Tax Reimbursement | Varies |
| Unapproved Vendors | Actual out-of-pocket costs of inspection or testing |
| Liquidated Damages | According to a formula based on the franchisee’s 2-year License Fee history |
| Indemnification | Varies according to lost |
| Franchisor Employee Training Fee | $7,500 or then current amount |
| Warranty Escrow on Transfer | Up to 10% of sales price |
The above information has been taken from the UFOC/FDD of Aire Serve Heating and Air Conditioning
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