Aire Serv Heating & Air Conditioning Franchise Costs, Fees & FDD

Year Business Began: 1992

Franchising Since: 1992

Headquarters: Waco, Texas

Estimated Number of Units: 245

Franchise Description: The franchisor is Aire Serv SPV LLC. The parent company is Neighborly Assetco LLC. Franchisees install, maintain and repair certain residential and commercial heating, ventilating, air conditioning and indoor air quality services and equipment, sell and service water-based heating systems; perform related services and sell related products.
Training Overview: The training requirements may vary depending on the franchisee’s experience and other factors specific to the business. If the franchisor requires, franchisees must attend the Phase I Training Webinar with their assigned franchise consultant or other designated person prior to participating in other training. At least one owner or designated manager must attend and complete Phase I and Phase II Training to the franchisor’s satisfaction, and in the case of Phase II training, an owner as well as any manager of a location must attend and complete training to the franchisor’s satisfaction. The Phase I Training will generally last 2.5 days but training time may vary depending upon the knowledge, qualifications, and experience of the franchisee. After Phase I Training has been completed franchisees will attend Phase II training, which generally will last five days. Phase II Training occurs at the franchisor’s offices in Waco, Texas or at such other locations as it may designate, or via webinar/video conferencing at various times during the year. In addition, franchisees will be required to attend field training including visiting the office of a designated existing franchised business selected by the franchisor for a period of one to five days to observe the office and field processes and procedures (although this training may be done remotely/virtually). Franchisees must also attend, every year, the annual training or conference event specified by the franchisor and currently referred to as “Reunion,” and any other training the franchisor designates as required.

Territory Granted: The Franchise Agreement will specify a designated territory that will provide franchisees limited territory protection. The Franchise Agreement does not grant franchisees any territorial rights beyond the territory. The territory will have a minimum population that is generally at least 100,000 and a maximum population that is generally no more than 300,000. A larger population may be allowed under certain circumstances (e.g., densely populated urban areas, or a high percentage of the territory is impoverished). Franchisees will maintain rights to their territory even if the population in their territory increases. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that are owned by the franchisor, or from other channels of distribution or competitive brands that the franchisor controls.

Obligations and Restrictions: If franchisees are individuals, they must directly perform or supervise the operation of the business unless the franchisor consents otherwise. If the franchisor agrees that the franchisee need not personally perform or supervise operation of the business, an individual who has successfully completed the training program (manager) must directly supervise the franchise, and that individual must be a bona fide manager, as determined by the franchisor. If the franchisee is a corporation or other legal entity, direct, on-site supervision must be done by a designated owner who has successfully completed the training program unless the franchisor consents otherwise (principal owner). Franchisees must offer and sell only the goods and services that conform to the franchisor’s standards and specifications. Franchisees must offer the goods and/or services that are designated as required for all franchisees and franchisees may elect to offer other products and/or services only if the franchisor approves them in advance.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. The Franchise Agreement can be renewed for one additional 10-year term by executing the then-current form of Franchise Agreement and meeting the other requirements for renewal.

Financial Assistance: The franchisor has no obligation to provide franchisees any financing, but it may agree to finance a portion of the initial franchise fee for qualified prospective franchisees under specified terms and conditions. The franchisor’s decision to finance the initial franchise fee will be based, in part, on the franchisee’s creditworthiness, the collateral the franchisee has available to secure the financing and the franchisor’s then-current financing policies. The franchisor does not provide any financing in any transaction in which brokers are involved. The franchisor limits the amount that it will finance – currently, to an amount less than 50% of the total equity, debt and other financial support of the business. The franchisor may sell, assign or discount any promissory note or other obligation arising out of the franchise agreement to a third party. The franchisor may periodically agree with third party lenders to make financing available to qualified franchisees and the franchisor may, in its sole discretion, refer franchisees to a third party lender for financing. The franchisor does not guarantee franchisees’ obligations to third parties.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$45,000	$45,000 + $450 per 1,000 additional population over minimum
Vehicle	$6,500	$60,000
Equipment, Supplies & Inventory	$5,100	$25,000
Insurance	$3,000	$6,000
Advertising & Promotional and Local Marketing Spending	$30,000	$60,000
Start-up Package	$1,708.50	$1,708.50
Training, Travel, Lodging & Food	$4,000	$8,000
Deposits, Permits & Licenses	$500	$10,000
Professional Fees	$0	$5,000
Additional Funds – 3 Months	$15,000	$45,000
Real Estate	$3,000	$6,000
ESTIMATED TOTAL	$113,808.50	$271,708.50 + any additional franchise fee

 
Other Fees

Type of Fee	Amount
License Fee	5% to 7% of gross sales except for specialty services, “roll-in” sales. In addition, minimum license fees apply.
Marketing, Advertising and Promotion (MAP) Fee	2% of gross sales except for specialty services and “roll-in” sales.
Local Marketing Groups	Not to exceed 3% of gross sales.
Software System Monthly Fees	Varies. Franchisees must use the business management software that the franchisor specifies (currently, ServiceTitan) and the accounting, reporting and other software it specifies.
Late Fees (on Software System Monthly Fees)	$25 per month or the maximum amount allowed under the law, whichever is less.
Annual Convention (Reunion) Fee	The then-current fee. Currently up to $1,000, plus travel, lodging, meals and other expenses.
Transfer Fee	The greater of (i) $7,500 or (ii) 5% of the sales price.
Renewal Fee	$5,000
Amendment Fee	$300
Late Fees (Franchise Agreement)	$10 per day.
Call Center Program Fees	Current fees: $349.99-$449.99/ month (depending on the third-party vendor NCS is able to use) plus $25 per booked appointment.
Dishonored Check or ACH Draft	$50
Interest	12% on unpaid balances.
Audit	Cost of audit plus expenses, plus any amount owed as shown by the audit, plus interest and late fees.
Audit Noncompliance Fee	$500 per document (up to $2,500 per audit) that the franchisee fails to timely make available to the franchisor in connection with an audit; and/or: cost of audit, if audit is rescheduled due to the failure to cooperate with the audit.
Tax Reimbursement	Varies.
Unapproved Suppliers	The franchisor’s actual out-of-pocket costs of inspection or testing.
Indemnification and Attorneys’ Fees and Costs	Varies according to loss.
Additional Training Fees	The then-current fee, currently up to $1,000 per day.
Key Accounts/Management Fee	Up to 5% of total gross sales related to key account work, including gross sales that relate to key accounts, gross sales that are the result of any lead or any agreement developed by the franchisor’s business development department or any similar group that is part of its company or is its designee; Gross sales for work that is dispatched from any call center operated by the franchisor or its designee; gross sales that are audited by the franchisor or its designee according to key accounts standards or gross sales that otherwise benefit from the franchisor’s key accounts activities or management.

The above information has been compiled from the FDD of Aire Serv. Year of FDD: 2025.
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