About Linc Service Franchise
Linc Service is a commercial HVAC franchise system where franchisees operate businesses engaged in the maintenance, repair, and replacement of heating, ventilating, and air conditioning (HVAC) systems, equipment, and controls.
Franchisees serve primarily commercial, industrial, institutional, and multifamily residential building owners and managers, offering services including maintenance, calibration, repair, energy management, building automation, temperature control design and installation, and sale of related parts and supplies.
Services are provided on a contract, as-needed, or emergency basis.
Linc Service Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $65,000 - $75,000 | One-time payment upon signing |
| Royalty Fee | 2% to 5% of Gross Revenues (graduated scale) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | None required | National brand fund |
| Total Investment Range | $82,050 – $188,200 | Includes build-out, inventory, working capital |
The investment range of $82K–$188K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (2% to 5% of Gross Revenues (graduated scale)) and marketing fee (None required) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $75,000 |
| Pre-opening Training, Travel & Living Expenses | $0 | $5,000 |
| Insurance | $0 | $0 |
| Vehicles | $0 | $5,400 |
| Vehicle Markings | $50 | $500 |
| Real Property | $0 | $0 |
| Equipment | $0 | $60,000 |
| Computer Equipment | $2,000 | $5,000 |
| Computer Software Initial Fee/Set Up/Initial Training | $0 | $22,200 |
| Additional Funds (3 Months) | $40,000 | $15,100 |
| TOTAL | $82,050 | $188,200 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | No additional franchise fee for renewal; Renewal Waiver Fee of $500/month if operating under expired agreement |
| Technology Fee | ValueBuilder Monthly Software Assurance: $50/Office User and $25/Field User; Hosted environment: $75/month/Office User; Salesforce.com: $75/month/User (minimum 3-year term) |
| Audit Fee | Franchisor's actual audit costs and expenses if understatement of Linc Business of 2% or more |
| Satellite Branch Amendment Fee | $15,000 |
| Remote Branch Amendment Fee | $30,000 |
| Remote Branch Conversion Fee | $20,000 |
| Technical Training | $99-$500 per trainee |
| Other Non-standard Training Fees | $750 per instructor day plus travel and living expenses |
| Leadership Training | $2,500 plus travel and living expenses |
| Liquidated Damages | $65,000 (if agreement terminated other than pursuant to certain sections) |
| Interest on Late Payments | Lesser of 1.5% per month or highest rate permissible by law |
| Minimum Royalty Fee Year 1 | $6,000 |
| Minimum Royalty Fee Year 2 | $9,000 |
| Minimum Royalty Fee Year 3 | $12,000 |
| Minimum Royalty Fee Year 4 | $15,000 |
| Minimum Royalty Fee Year 5 | $18,000 |
| Minimum Royalty Fee Year 6 | $21,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Minimum 20 instructor-days of classroom training for General Manager during initial term, plus ongoing training programs |
| Classroom Training | 126 hours |
| On-the-Job Training | 95 hours |
| Training Location | Pittsburgh, PA; Alpharetta, GA; Virtual; At franchisee location |
| Additional Training | Linc University provides blended learning solutions with 60+ course curricula for all Linc Service job titles. Annual Continuing Education Conference held at a hotel or convention center. Online and virtual reality technical training available through partnership with Interplay Learning. Refresher training and additional training available at published rates. Virtual training: 117 hours; Pre-training: 24 hours. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Primary Marketing Area (limited protection) or Shared Marketing Area (non-exclusive) |
| Exclusive Territory | No |
| Territory Size | Typically delineated by county boundaries and/or boundary streets or highways |
| Description | Franchisee receives either a Primary Marketing Area or Shared Marketing Area. In a Primary Marketing Area, franchisor will not perform nor authorize another Linc franchisee to perform services using Proprietary Marks on buildings within the area, with exceptions for: work with franchisee consent, another franchisee performing services outside its own area under certain conditions, National Accounts, and residential properties (4 or fewer dwelling units). In a Shared Marketing Area, franchisee may face competition from other Linc Service franchisees. Franchisor reserves rights for Facility Services, Bundled Energy Solutions, and Lighting and Electrical Services within all territories. Territory does not depend on achievement of sales volume or market penetration. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 6 years |
| Renewal Term | One 6-year renewal term |
| Renewal Fee | No additional franchise fee for renewal if in compliance; Renewal Waiver Fee of $500/month if operating under expired agreement pending renewal |
| Renewal Conditions | Not in default under expiring Franchise Agreement; sign franchisor's then-current franchise agreement (which may contain materially different terms including different royalty rates, territory size, and no further renewal rights); execute General Release; comply with then-current qualification and training requirements; franchisor continues to operate as a franchisor offering Linc franchises |
| Transfer Fee | $10,000 |
| Transfer Conditions | Execute General Release; not in default; compliance with Franchise Agreement and all other agreements; transferee or its owners meet franchisor's then-applicable standards; adequate assurances that all financial and other obligations will be met; transfer will not adversely affect the Linc Business; execution of franchisor's then-current franchise agreement. No consent or fee required for transfers between present owners, officers, directors, or their family members. |
| Termination for Cause | Curable defaults: failure to perform obligations with 30 days to cure. Non-curable defaults: abandonment, felony conviction, unapproved transfers, misuse of trademarks or proprietary information, disclosure of trade secrets, more than one default within any 12-month period (even if cured). |
| Non-Compete Period | During term of franchise; 1 year after termination for employees who signed Confidentiality Agreement |
| Non-Compete Details | During term: franchisee, General Manager, directors, officers, and any person with 5% or greater interest may not engage in any business performing activities included in the Linc Business definition without prior written consent. After termination: employees who signed Employee Confidentiality Agreement cannot contact or solicit any customer or prospect of the Linc Business for 1 year following termination of employment, and cannot solicit other Linc employees for 1 year. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisor recommends but does not require that principal owners personally participate in direct operation. If principal owner does not personally manage the business, it must be managed by a General Manager who devotes full time to management and operation. General Manager appointment is subject to franchisor's consent and must complete all required training courses. General Manager does not need an ownership interest in the franchised business. |
| Required Suppliers | Equipment, uniforms, vehicle marking, computer software, software maintenance and support services, and certain advertising must be purchased from franchisor or approved suppliers. All items bearing the Linc name or logo must conform to franchisor specifications. |
| Supply Restrictions | Franchisor negotiates purchasing arrangements with numerous suppliers for the benefit of franchisees. Franchisees must provide Field Service Representatives with uniforms and vehicles displaying the Linc logo from suppliers meeting franchisor specifications. |
| Franchisor Revenue from Suppliers | In fiscal year ending October 2022, franchisor received $159,000 in revenue from Linc franchisees' purchases of vehicles, equipment, stationery, business cards, forms, and sales aids (less than 1% of total revenue of $7,806,600,000). Additionally received $1,095,000 in revenue from computer software, training, support and maintenance fees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Franchisor offers the option to pay the Initial Franchise Fee in installments: $37,500 upon execution of the Franchise Agreement and the remaining $37,500 in eleven consecutive monthly installments of $3,409.09 each. No other direct or indirect financing is offered. |
Linc Service Franchise Earnings — Item 19
Linc Service does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Linc Service Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Linc Service System Growth
Linc Service currently operates 115 franchised locations and 32 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 3 | 5 | 107 |
| 2021 | 5 | 3 | 109 |
| 2022 | 4 | 7 | 115 |
Transfers: 1 | Closures: 7
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by KPMG LLP for year ending October 31.
Linc Service Franchise — FAQ
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