Published on: September 23, 2022 It’s no surprise that there’s a greater need than ever for home services, particularly jobs like enhancing indoor air quality systems.If your HVAC company has experienced growth and success, expanding strategically through an HVAC franchise may be the best course of action for you.At its most basic level, franchising allows you to sell franchise rights of your business model and HVAC company’s name to independent investors, typically within a specific territory. Those who purchase a franchise pay an initial fee and afterward recurring royalties to your company.But how can you tell if an HVAC franchise opportunity is a good choice for you?What is the cost of franchising your company?To help you with the process of turning your company into a franchise, we’ve gathered information and tips from industry experts.Let’s get to the details!Table of ContentTips for Turning Your Company into an HVAC FranchiseFrequently Asked QuestionsFieldCamp Has You Covered!Tips for Turning Your Company into an HVAC Franchise1. Create an HVAC franchise business planOne of the most important steps you need to work on before getting an HVAC franchise is to create a business plan. Without this step, you will have no strategy to scale your HVAC business performance or monitor your success.Some handy tools you might need in your arsenal can also come in the form of field service management software that can help you streamline your business processes and meet the demands and current trends of the HVAC industry.2. Determine the cost to franchise your HVAC businessThe cost of franchising your HVAC business is determined by a variety of factors. However, legal franchising experts recommend setting aside an initial startup budget of $42,500 to $60,000 to franchise your business.These expenses include registering a trademark, paying legal and state fees, putting together a disclosure document and franchise agreement, and keeping track of audited financial statements.Because starting a franchise is a team effort, according to franchise experts, it’s also crucial to budget for hiring franchise talent and advertising and reaching out to franchisees.Keep in mind that these expenditures are separate from franchise fees, which are paid to franchise owners by franchisees. Experts warn that you should not rely on those fees as a source of income in the early stages of establishing your HVAC franchise.3. Determine what you expect from your HVAC franchiseA franchise can be defined as a business model that raises money to support established systems and brands.If you want to know if an HVAC franchise is right for you, you should first identify what you expect to accomplish by franchising your business. Then, you should plan how you intend to carry out those objectives.No matter the industry—whether HVAC services or electrical, or plumbing—the business principles for opening a franchise are the same.According to Ellen Rohr, the ultimate question as a business owner and consultant is: What do you want? Ellen Rohr is the Chief Operating Officer of ZOOM DRAIN Franchise, which has expanded across 18 locations in the United States. He is also a business consultant.He continues by saying that you should decide what you really want because your business will act as the engine that propels you in the direction of your goals.If you want to generate wealth, not do everything by yourself, and be of service to others, starting an HVAC franchise might be a good option for you.Once you’ve devised a strategy for achieving your franchise business objectives, surround yourself with a group of like-minded individuals who can assist you.4. Develop your HVAC franchiseStarting an HVAC franchise legally is a complicated process. Therefore, you’re going to need help from experts to establish a proper framework in place.Heating and air conditioning franchise businesses, like all franchises, are governed by state laws and Federal Trade Commission. The Franchise Rule of the Federal Trade Commission provides prospective franchise buyers with the details they need to evaluate the risks and rewards of the investment.According to the Federal Trade Commission rule compliance guide, franchisors must provide prospective franchisees with:Background details on the franchisorBackground details on the franchise territoriesLegal obligations for both partiesExpenses of starting an HVAC businessStatistical dataAudited financial informationProspective franchisees receive the Franchise Disclosure Document, which includes the following:Franchise agreementPersonal guarantee to signTable of contents of the operations manualAudited financial statements from the franchisorsFurthermore, different states have different franchise laws, so having someone with legal franchise expertise by your side as you explore the franchising procedure is essential.The franchise operations manual is also important in the development of HVAC franchises. It describes the franchise operation processes, such as how to provide the company’s best HVAC services to both residents and businesses, how to successfully manage, as well as other classified data.Other factors to consider when starting an HVAC franchise include the application approval process, procedures and systems, and business growth and marketing plan.5. Market your HVAC businessYour identity and the company’s brand image are critical, as any franchise owner or franchise coach will tell you.HVAC marketing can help your brand get noticed by your target audience and set you apart from the competitors in the market. Therefore, don’t be afraid to brag about your company’s features, including your office and domain.Besides traditional marketing techniques such as newspaper or phone book ads, your website and social media will play a role in marketing your HVAC company.Also, you can help your company project a professional image by engaging with customers on social media, widening your reach with Google Ads, and securing potential clients by updating your website.6. Train your HVAC team into professionalsFranchises and HVAC companies share one thing in common: the importance of having a skilled and professional team if they want to continue to be successful and provide high-quality services. Therefore, no matter how good your existing business model is, without a well-trained team of experts, your company won’t grow.A great way to scale your team is to establish HVAC technicians’ targets and areas for additional training. This could range from air conditioning repair protocols to offering ongoing business consultation to clients. Making certain that your team adheres to the latest industry standards and best practices will go a long way toward assisting you in scaling your HVAC business.7. Sell HVAC FranchisesIf you’ve already created a successful business model before starting your HVAC franchise, the transition to a franchise will be easier.Your systems are already in place and have been proven to be effective, and potential franchisees can see how well you run your business. In addition to providing franchisees with ongoing assistance and extensive training, franchisors also frequently handle marketing assistance and advertising.Franchise fees and royalties are an important part of the franchising structure. A franchise fee is a one-time cost of entering a franchise system. Royalty payments generate ongoing profits for a set period of time, such as monthly or quarterly.Every franchise has a different system in place for collecting royalties, and some of them request a specific percentage or sum of money. Others may require a percentage that increases or decreases based on sales, while some require none.Franchise industry experts estimate that the royalty fee if it is based on a percentage of gross sales, could be between 5 and 9%.8. Buying into HVAC franchise opportunitiesIf you don’t want to start your own heating and air conditioning franchise but want to join an existing business structure, acquiring an HVAC franchise may be the best option.The following are some of the perks of purchasing an established HVAC franchise:Stability in a well-established companyBrand name recognition of your HVAC systemsAssistance with training and marketingInvesting in top franchises in the HVAC industry could be a good way to build a valuable asset for the future, but it’s important to weigh the pros and cons. Choosing whether to start your own business or enter a franchise must be based on your business goals.Some people prefer HVAC franchise opportunities so they can continue to run their own HVAC company while benefiting from tried-and-true procedures that are already in place.If you own an Aire Serv franchise, the company takes several factors into account when determining territory size, such as where your existing customers are located and whether you have an established business. If you decide to purchase an HVAC franchise, make sure you thoroughly understand the process.Obtain a copy of the franchisor’s Franchise Disclosure Document before investing in any franchise. Potential franchisees should receive the FDD document at least 14 days before signing any contract or making any payments to the franchisor.The following are the steps to purchasing a franchise:Application processInterview testFranchise agreementBusiness financingStaff trainingFranchisees are carefully chosen by franchisors because they want a perfect match and an applicant who fulfills their requirements. Different companies have different startup requirements. Scrutinize businesses of interest to discover HVAC business opportunities.Franchises provide contact information for franchise opportunities; alternatively, potential franchisees can submit an online form so a franchise development manager will get in touch with them.Whether you create your own HVAC franchise or purchase an existing one, you can easily prove to your local customers that you can provide efficient, quality service regardless of how many locations you manage. You can do so by automating your residential services franchises’ systems. This, in turn, increases HVAC leads and overall revenue.9. Invest in a quality field service management softwareAs an HVAC franchise, you will want to ensure your business operates effectively and efficiently at every step. FieldCamp, one of the best field service scheduling and HVAC software, allows all of your franchises and employees to work under a single dashboard so that you can manage across multiple locations.Among several features, FieldCamp’s comprehensive system allows you to automate the following important tasks:SchedulingDispatchingInvoicing PaymentReportingFieldCamp will keep you up to date on everything. Manage everything, from technician schedules to assigned jobs, status monitoring to completed jobs, and make your business successful and thriving.FieldCamp assigns the appropriate job to a staff member based on your priorities and application usage when you pick a job. This will make your work easier and more effective than ever.FieldCamp has you covered whether your customers are handing over credit cards, writing checks, or counting cash. You can manage all of your payments, whether they are received or pending, and get paid more quickly thanks to the software.Customers are your company’s heart and soul. Our scheduling software enables personalization, professional support, and immediate access to the specifics that are important to each customer. Such details include their service history, payment preferences, their other unique information.By automating the customer experience process, you can accomplish target marketing to a local audience with your own business. This would show that, despite operating an HVAC franchise with a regional or national brand, you’re a local business that provides HVAC services to clients in the immediate vicinity.Manage and Grow Your HVAC BusinessSchedule and dispatch HVAC technicians, create invoices for HVAC jobs, create service reports with our HVAC business software.Try FieldCamp for FreeFAQsIs HVAC a sustainable business venture?It’s exciting to start your own HVAC business, but it’s perfectly fine to work HVAC part-time or start small before expanding to full-time and getting a franchise as long as you’re confident in your capability to serve your clients well while also earning enough money to cover your expenses.Are HVAC businesses profitable?According to ZipRecruiter, the average salary nationwide for an HVAC technician is $49,242. Top earners have salaries ranging from $56,600 to $68,000. However, salaries may vary depending on your location and the cost of living.Few people make more than $100,000, but those who do, do so because they use efficient systems in their businesses, examine every possible angle, and improve the effectiveness of their work.FieldCamp Has Got You Covered!As mentioned earlier, subscribing to a field service management software like FieldCamp will help you manage your business processes effectively and scale your business.Along with accessing all the major features of FieldCamp, you can generate analytical reports in minutes with automation, which otherwise would have taken a really long time if done manually. These analytical reports and made carefully and help you make better and informed business decisions.Author BioGaurang Bhatt Gaurang Bhatt is a techie in himself with an ability to solve problems technically and present solutions in the form of a product. He is one of the pioneers to curate FieldCamp with his 15+ years of knowledge and expertise in providing solutions to home service industries. Gaurang aims to overcome challenges faced by service business owners through software solutions and blogs. Sign up for weekly updates from Fieldcamp.