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TemperaturePro Franchise ProfileHome Services Franchises > HVAC Services |
What is the Initial Investment for a TemperaturePro Franchise?
To open a TemperaturePro franchise, you should expect an initial investment ranging from $402,050 to $439,750. This amount includes a franchise fee of $147,500, which is part of your startup costs. Additionally, you will need to have a cash requirement that falls within the same range. It's essential to evaluate your financial readiness and ensure you meet the net worth requirement of $500,000 to $1,000,000 before proceeding.
What are the Ongoing Fees Associated with TemperaturePro?
TemperaturePro franchisees are responsible for ongoing fees that include a royalty fee of 6% on gross sales and a marketing fee of 1%. These fees are crucial for maintaining brand presence and marketing efforts, which can significantly impact your franchise's success. Understanding these costs will help you plan your budget and financial forecasts effectively.
What is the Average Annual Revenue for TemperaturePro Units?
The average annual revenue per TemperaturePro unit is approximately $442,716, with a median revenue of $2,334,461. The revenue can vary significantly, with the lowest annual revenue reported at $154,306 and the highest at $4,242,070. This wide range indicates the potential for profitability, but success may depend on various factors, including location and management efficiency.
What is the Breakeven Timeline for a TemperaturePro Franchise?
Franchisees can expect a breakeven time of about 18 months, with an investment payback period of approximately 24 months. This timeline is essential for prospective franchisees to understand as it helps gauge the financial viability of the business. Being aware of these metrics allows you to set realistic expectations and plan your financial strategy accordingly.
TemperaturePro Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
TemperaturePro Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 291 | 316 | 264 |
| Net Change YoY | 25 | -52 | |
| Franchised Units | 288 | 313 | 261 |
| Net Change YoY | 25 | -52 | |
| Corporate Units | 3 | 3 | 3 |
| Net Change YoY | 0 | 0 |
Investment Overview
The TemperaturePro franchise offers a low to moderate initial investment range of $402,050 to $439,750. This includes a franchise fee of $147,500, along with ongoing royalty and marketing fees of 6% and 1% respectively. Aspiring franchisees should be prepared for a cash requirement that aligns with this investment range, as well as a net worth requirement between $500,000 and $1,000,000.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $442,716, with the potential for significantly higher earnings. The highest reported annual revenue per unit reached over $4.2 million, showcasing the lucrative opportunities within the TemperaturePro model. However, the lowest annual revenue recorded was around $154,306, indicating variability in performance that franchisees should consider.
Operational Timeline
The breakeven time for a TemperaturePro franchise is estimated at 18 months, allowing franchisees to recover their initial investment relatively quickly. Additionally, the average investment payback period is around 24 months, providing a clear financial roadmap for new owners as they work towards profitability.
Franchise Growth
TemperaturePro has shown steady growth in its franchise units, with 288 units in 2020, increasing to 313 in 2021 before a slight decline to 261 in 2022. This growth trend indicates a robust interest in the franchise opportunity, though potential franchisees should be aware of the fluctuations in unit count that may affect market dynamics.
Corporate Structure
The TemperaturePro franchise operates under a well-defined corporate structure, consisting of both franchised and corporate-owned units. As of 2022, there were three corporate units, providing franchisees with a stable support system and a direct line of communication with corporate leadership for operational guidance and best practices.
Financial Performance
The financial performance of TemperaturePro franchises is supported by a solid EBITDA margin of 27%, indicating healthy profitability. Operating expenses are approximately 60% of revenue, which helps franchisees understand the cost structure and manage their financial expectations effectively. This data underscores the importance of maintaining operational efficiency to maximize profitability.
Frequently Asked Questions
The initial investment for a TemperaturePro franchise ranges from $402,050 to $439,750, which includes the franchise fee and other startup costs.