How to Finance a Service Experts Franchise: HVAC Conversions
By Chris Cornella
A Service Experts franchise loan finances entry into one of the newer franchise systems in residential heating and air conditioning, backed by a company that operated its own service centers for decades before it began franchising. Owners can open a new center in an open territory or convert an existing HVAC business to the brand, and each path is financed differently.
This article covers what Service Experts publishes about its fees and investment, how the brand’s marketing commitments and conversion model affect borrowing, its SBA Franchise Directory status and how lenders typically evaluate a start-up or conversion request.
US Professional Funding is not affiliated with, sponsored by or endorsed by Service Experts; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Service Experts Franchise Loan at a Glance
- Initial franchise fee: $59,900 for a single territory, according to the franchisor’s investment page, with multi-territory packages of $109,900 for two, $154,900 for three and $194,900 for four.
- Royalty: 6% of gross revenue for greenfield (start-up) centers; conversion centers pay a reduced rate for their first two years.
- Brand marketing fund: up to 2% of gross revenue, currently 1%.
- Local marketing: at least 6% of gross revenue and not less than $32,000 a year.
- Estimated initial investment: $148,750 to $288,900 for a start-up; $129,500 to $230,900 for a conversion.
- Financial requirements: $350,000 minimum net worth and $150,000 in liquid capital.
- Franchise term: ten years, with two five-year successor options.
- System size: more than 75 locations in more than 31 states, according to the franchisor.
- SBA Franchise Directory: listed under code S8718.
What Is Service Experts?
Service Experts Heating & Air Conditioning was founded in 1996 and is based in Richardson, Texas. Over nearly three decades it grew into a national network of company-operated service centers, expanding from HVAC into a broader home comfort provider. The company says its teams serve more than 2,500 homes and businesses on an average working day with more than 3,000 professionals.
A new franchise program. Service Experts announced its franchise program in September 2025, describing a model in which locally owned HVAC businesses join a unified network of service centers under one brand. Its first franchise was an existing HVAC company in Tulsa, Oklahoma, that rebranded as a Service Experts center, and the company has since announced additional franchise agreements.
How the business makes money. The franchisor describes several revenue streams: repairs and installations, the Service Experts Advantage program, which lets homeowners pay one monthly fee covering equipment installation, maintenance and repairs, and Maintenance+ annual memberships. Franchisees also gain preferred vendor pricing, national lead generation programs and benchmarking tools.
Why lenders view it the way they do. Lenders see a long operating history at the company level, a large base of company-owned centers and a franchise system that is still young. They will give weight to the brand’s systems and support, but they will lean on the borrower’s own experience, the local market and, for conversions, the existing business’s financial history.
Service Experts Franchise Costs
Initial franchise fee. The franchisor lists a $59,900 fee for a single territory, with packages of $109,900 for two territories, $154,900 for three and $194,900 for four. Military members and first responders receive 10% off the initial franchise fee for their first territory. The franchisor’s materials show different fee figures for conversion centers in different places, so confirm the conversion fee in Item 5 of the current FDD.
Real estate and build-out. A Service Experts center is a service business, not a retail storefront. The start-up estimate includes rent of up to $12,000, leasehold improvements of up to $20,000 and security and utility deposits of $500 to $2,000, reflecting modest office and warehouse space during the initial period.
Vehicles, tools and equipment. Service trucks, tools and diagnostic equipment are core assets. The estimate covers vehicles and vehicle signage, machinery, tools and equipment, office furniture and information technology systems.
Opening costs and working capital. The largest variable items are pre-opening and grand-opening marketing of $25,000 to $35,000 and additional funds of $30,000 to $70,000 for the first three months of a start-up.
Total investment. The franchisor’s itemized estimate for a start-up center totals $148,750 to $288,900:
- Initial franchise fee: $59,900
- Rent: up to $12,000
- Leasehold improvements: up to $20,000
- Security and utility deposits: $500 to $2,000
- Information technology systems: $3,600 to $6,000
- Office furniture and equipment: $1,500 to $10,000
- Machinery, tools and equipment: $4,500 to $9,000
- Pre-opening and grand-opening marketing: $25,000 to $35,000
- Vehicles and vehicle signage: $6,000 to $15,000
- Interior and exterior signage: $2,500 to $15,000
- Training fee: $5,000
- Travel for initial training: $4,000 to $6,000
- Initial inventory: up to $5,000
- Business insurance: $4,000 to $9,000
- Business licenses: $250 to $5,000
- Professional fees: $2,000 to $5,000
- Additional funds for three months: $30,000 to $70,000
For a conversion center, the franchisor estimates a total of $129,500 to $230,900, since an existing business usually already has a facility, trucks, tools and licenses. Conversion estimates still include rebranding of vehicles, signage, technology, training and grand-opening marketing, plus additional funds of $15,000 to $30,000 for three months.
Ongoing Fees and How They Affect Your Loan
Royalty. Greenfield centers pay 6% of gross revenue. Conversion centers pay a reduced rate for their first two years, which can ease cash flow while the business adjusts to the brand; confirm the schedule in Item 6.
Brand marketing fund. Up to 2% of gross revenue, currently 1%.
Local marketing. Franchisees must spend at least 6% of gross revenue, and not less than $32,000 a year, on local marketing. The franchisor recommends 10% to stay competitive. This minimum is a fixed floor that applies even in a slow first year.
How lenders factor these costs in. Royalty, brand fund and local marketing together take a meaningful share of every revenue dollar before payroll, equipment, vehicles and debt service. Lenders build those percentages, and the dollar minimum on local marketing, into projections and test whether the business can still cover its loan payments if revenue ramps slowly or a mild season reduces demand.
Franchisor Requirements for New Owners
- Net worth: at least $350,000.
- Liquid capital: at least $150,000.
- Experience: technical HVAC experience is not required, though it helps. The franchisor looks for management experience, financial acuity and a solid credit history.
- Candidate types: financially qualified owners converting an existing service business, owners opening a center in a new territory and current general managers buying their own service center.
The approval process. The franchisor describes an inquiry, a short introductory call, a one-hour discovery call, a candidate profile and receipt of the FDD, a meeting with leadership on investment and financing options, a day at the Richardson headquarters, and then the franchise agreement and territory award. Launch preparation takes about 90 days. Starting Service Experts franchise loan conversations during the FDD review keeps both timelines in step. Our article on how much franchise you can afford helps frame the numbers early.
Ways to Own a Service Experts Center
A new start-up center. An owner opens in an open territory and builds the business from scratch. Lenders underwrite projections, the owner’s experience and liquidity. See our HVAC start-up financing page.
Converting an existing HVAC business. An established heating and cooling company signs on and rebrands. Because the business has tax returns, customers and equipment, lenders can underwrite its history and the cost of conversion. Read more about financing a franchise conversion.
A general manager buying a center. The franchisor names current general managers buying their own service center as a target candidate. That is effectively the purchase of an operating business from the franchisor, which lenders treat as an acquisition with historical financials. Our article on buying corporate franchise locations explains how these deals differ.
Acquiring an independent company and converting it. A buyer can purchase a local HVAC business and convert it to the brand at closing, combining an acquisition loan with conversion costs. See our HVAC business acquisition financing.
Financing Options for a Service Experts Franchise
SBA 7(a) loans. For a start-up or conversion, an SBA 7(a) loan can cover the franchise fee, vehicles, tools, technology, grand-opening marketing and working capital in one structure. For an acquisition, it can also finance goodwill. The franchisor names SBA loans among the options owners use.
SBA 504 loans. The 504 program is designed for owner-occupied real estate and long-lived fixed assets. It is rarely needed for a new center that leases modest space, but it can fit an established owner buying a warehouse and office building for a growing operation.
Conventional term loans. An experienced operator converting a profitable HVAC company may qualify for a conventional business loan sized to existing cash flow. Terms vary by lender and borrower.
Equipment and vehicle financing. Service trucks and vans, vehicle upfitting, refrigerant recovery machines, diagnostic tools and technology can be financed separately, preserving cash for marketing and payroll. See our franchise equipment financing and leasing page and our article on financing an HVAC fleet.
Working capital and lines of credit. HVAC demand peaks in summer and winter and softens in mild shoulder seasons. A line of credit helps cover payroll, equipment inventory and the local marketing minimum through slower months. Learn more about HVAC working capital and lines of credit.
Seller financing on acquisitions. When buying an independent company to convert, part of the price may be carried by the seller. Any seller note must be acceptable to the senior lender and is typically subordinate to it, and loan programs may limit how seller notes are structured or repaid.
SBA Loans for Service Experts Franchisees
SBA lenders rely on the SBA Franchise Directory to confirm a franchise agreement has been reviewed for eligibility. A listing does not approve any borrower; each applicant still goes through full underwriting.
Service Experts is listed under code S8718, with no additional directory note. In plain terms, an SBA lender can generally consider a Service Experts franchise without a separate review of the franchise relationship. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
SBA application tips. Bring the FDD and franchise agreement, a personal financial statement, tax returns, a business plan with a month-by-month ramp, and, for conversions or acquisitions, several years of the existing business’s tax returns and financial statements. Use our SBA loan calculator to estimate payments for planning only; estimates are not an offer or approval.
How Lenders Evaluate a Service Experts Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and typically require a personal guarantee. The franchisor itself lists solid credit history as a candidate requirement.
Net worth and liquidity. The $350,000 net worth and $150,000 liquidity thresholds set a floor. Lenders also look at the cash left after the equity injection.
Industry and management experience. Management experience matters most. Lenders want to see who will run technicians, dispatch and sales, and whether a licensed HVAC professional is on the team where required.
Business plan and projections. A start-up plan should model technician hiring, truck count, the local marketing minimum, seasonality and the 6% royalty. A conversion plan should start from actual results and show the effect of the reduced initial royalty, rebranding costs and the new fee structure.
The FDD and franchise agreement. Lenders check the ten-year term and successor options, transfer conditions and territory. The FDD includes financial performance representations in Item 19; read them with your accountant rather than relying on any single figure.
Historical financials for conversions and acquisitions. Expect to provide several years of profit and loss statements, balance sheets and tax returns, plus details on service agreements and recurring maintenance customers.
Fleet, Tools and Recurring Revenue
A Service Experts center runs on trucks. Each technician needs a vehicle with shelving, parts inventory, refrigerant handling equipment and diagnostic tools, and vehicles are often the largest equipment line as the business grows beyond its first few hires. Financing trucks individually as they are added keeps monthly payments aligned with revenue capacity.
Recurring revenue also matters. Maintenance+ memberships and Advantage program customers create repeat relationships that lenders view favorably when documented, so track membership counts and renewals from the start.
Multi-Unit Growth and Development
Service Experts sells multi-territory packages at a lower per-territory fee than buying territories one at a time. Owners who buy several territories should understand any development schedule in the franchise agreement and plan financing for each opening.
Financing additional territories. Many owners finance the first center, prove the model and then use its cash flow to support the next. Others fund the multi-territory fee up front and stage vehicles and staff over time.
Real-World Scenarios
An experienced HVAC owner converting. A company owner with years of tax returns converts to Service Experts. An SBA 7(a) loan covers rebranding, technology, training and grand-opening marketing, and the lender underwrites the existing cash flow with the reduced initial royalty.
A sales leader opening a start-up center. A candidate with management and sales experience meets the liquidity requirement and opens in an open territory. An SBA 7(a) loan funds the fee, vehicles and three months of working capital, and the owner hires an experienced lead technician.
A general manager buying a center. A general manager buys the center they run. The lender underwrites the center’s historical financials, and the buyer adds a line of credit for seasonal swings.
A buyer acquiring and converting. A buyer purchases an independent HVAC company with seller financing for part of the price, converts it to Service Experts and finances additional trucks separately.
Common Mistakes to Avoid
- Underestimating the local marketing minimum in year-one projections
- Ignoring seasonality when sizing working capital
- Financing vehicles with short terms that strain early cash flow
- Assuming the reduced conversion royalty lasts beyond the first two years
- Buying multiple territories without a staged financing plan
- Relying on Item 19 figures instead of building your own projections
For more pitfalls, read about the HVAC business loan mistakes that cost owners the most.
Next Steps to Finance Your Service Experts Franchise
Step 1: Confirm you qualify. Verify that you meet the $350,000 net worth and $150,000 liquidity requirements.
Step 2: Choose your path. Decide between a start-up, a conversion, a center purchase or an acquisition and conversion.
Step 3: Review the FDD with advisors. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 4: Build projections. Model technicians, trucks, seasonality, royalty, brand fund and the local marketing minimum.
Step 5: Talk with a financing specialist. Compare SBA 7(a), conventional and equipment financing for your scenario.
Step 6: Apply and coordinate. Submit your package and align closing with the territory award and launch schedule.
Step 7: Launch with reserves. Keep working capital in place for the ramp-up and the first slow season.
Service Experts Franchise Loan FAQs
How much does a Service Experts franchise cost?
The franchisor estimates $148,750 to $288,900 for a start-up center and $129,500 to $230,900 for a conversion, including the franchise fee and three months of additional funds.
What is the Service Experts franchise fee?
$59,900 for a single territory, with packages of $109,900, $154,900 and $194,900 for two, three and four territories. Military members and first responders receive 10% off the fee for their first territory.
What royalty does Service Experts charge?
6% of gross revenue for greenfield centers, with a reduced rate for conversion centers during their first two years. The brand marketing fund is up to 2%, currently 1%.
How much do I need to spend on local marketing?
At least 6% of gross revenue and not less than $32,000 a year. The franchisor recommends 10%.
What net worth and liquid capital do I need?
$350,000 in net worth and $150,000 in liquid capital.
Can I get an SBA loan for a Service Experts franchise?
Service Experts is listed on the SBA Franchise Directory under code S8718, so eligible borrowers can apply for SBA 7(a) financing, subject to lender approval.
Does Service Experts offer financing?
The franchisor says it does not provide direct financing but may refer owners to financing sources case by case. Review Item 10 of the FDD.
Can I convert my existing HVAC company?
Yes. Conversion is a core part of the program, with a lower estimated investment and a reduced royalty for the first two years.
Do I need HVAC experience?
No. The franchisor says technical experience helps but is not required; it looks for management experience, financial acuity and solid credit.
Can I finance trucks separately?
Yes. Vehicles and equipment are often financed through separate equipment loans or leases, which keeps the main loan focused on start-up costs.
How long is the franchise term?
Ten years, with two five-year successor options.
Can a first-time business owner get a Service Experts franchise loan?
Yes, if the franchisor approves the candidate and the lender is comfortable with the plan. Strong management experience, liquidity and an experienced technical lead help.
Final Thoughts
Service Experts pairs a long company history with a new franchise program built around start-ups and conversions. A Service Experts franchise loan works best when projections respect the marketing minimum and seasonality, vehicles are financed sensibly and working capital is in place for the ramp-up, whether you are opening a first territory or converting an established company.
US Professional Funding helps HVAC and home service owners finance franchise start-ups, conversions, acquisitions, vehicles and working capital. Learn more about our franchise financing and HVAC and plumbing contractor financing solutions.
