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1-800-Plumber

1-800-Services, LLC
https://www.1800plumber.com
1-281-766-8535
1331 Broadway Street, Suite J, Pearland, Texas 77581

How much does 1-800-Plumber cost?

Initial Investment Range

$123,730 to $327,040

Franchise Fee

$55,050 to $95,700

1-800-Services, LLC is offering franchises for the establishment of businesses specializing in providing plumbing products and services, and heating, ventilation, and air conditioning (HVAC) products and services to residential and commercial customers under the name and mark 1-800-Plumber.

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1-800-Plumber June 17, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 19, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
3
3
4

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor’s audited 2024 financial statements show a net loss of over $155,000 and a negative members' equity (deficit) of nearly $33,000. Cash flow from operations appears positive but is highly dependent on collecting new franchise fees. The Illinois state addendum explicitly cites the franchisor's financial condition as a reason for deferring your initial fees. This indicates a potential weakness in the franchisor's ability to provide support and grow the brand from operational revenue.

Potential Mitigations

  • Your accountant must conduct a detailed review of the financial statements, including footnotes and cash flow sources, to assess the franchisor's stability.
  • A franchise attorney should explain the implications of the state-mandated fee deferrals and any financial assurance requirements.
  • Discuss the franchisor's financial health and plans for achieving operational profitability with your business advisor before investing.
Citations: Item 21, FDD Exhibit H, Illinois State Addendum

High Franchisee Turnover

High Risk

Explanation

The data in Item 20 reveals a very high rate of franchisee turnover. In 2024, a total of 13 outlets left the system (through terminations, reacquisitions, and other cessations) out of 44 operating at the start of the year. This represents a turnover rate of approximately 29.5%, which is a significant indicator of potential systemic problems, franchisee dissatisfaction, or lack of profitability within the system. This level of turnover poses a substantial risk to your potential for success.

Potential Mitigations

  • It is critical to contact a significant number of former franchisees listed in Attachment G to understand their reasons for leaving the system.
  • A business advisor can help you analyze the Item 20 data in detail and compare the turnover rates to industry averages.
  • Your franchise attorney should help you frame precise questions for the franchisor regarding the high number of terminations and cessations.
Citations: Item 20

Rapid System Growth

High Risk

Explanation

The franchisor is experiencing rapid growth, with the number of franchised outlets increasing from 36 to 50 during 2024. Additionally, Item 20 shows 23 franchisees have signed agreements but have not yet opened. While growth can be positive, such a rapid pace combined with the existing financial weakness and high turnover could strain the franchisor's ability to provide adequate training and support to all new and existing franchisees. This is explicitly noted as a risk in the Illinois addendum.

Potential Mitigations

  • In your discussions with current franchisees, specifically ask about the quality and responsiveness of the franchisor's support systems.
  • A business advisor can help you question the franchisor about their infrastructure and staffing plans to support this continued expansion.
  • An accountant should assess if the franchisor's financials support a sustainable growth model or suggest an over-reliance on franchise sales.
Citations: Item 20

New/Unproven Franchise System

Medium Risk

Explanation

The franchisor, 1-800-Services, LLC (1-800-Services), has been offering franchises since January 2017, after acquiring assets from a predecessor in 2015. While not a brand-new startup, the system is still relatively young. This limited history, combined with the financial weaknesses noted in Item 21 and the high turnover in Item 20, presents a higher level of risk compared to more established systems with a longer, more stable track record of supporting franchisees.

Potential Mitigations

  • Conduct thorough due diligence with your business advisor on the franchisor's operating history and the performance of its earliest franchisees.
  • Your accountant should carefully analyze the financial statements to gauge the stability and maturity of the business model.
  • Discuss the system's evolution and the management team's experience in franchising with your attorney.
Citations: Item 1

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD Package. The business model, providing plumbing and HVAC services, is a well-established and essential trade, not typically considered a fad. A business is considered a fad if its popularity is intense but short-lived, creating a risk that customer demand will disappear. You should still assess the long-term viability and competitiveness of this specific brand within the market.

Potential Mitigations

  • Engage a business advisor to research the long-term demand for plumbing and HVAC services in your specific market.
  • Your financial advisor can help you evaluate the business model's resilience to economic cycles and changing consumer trends.
  • Discuss the franchisor's strategies for innovation and staying competitive with current franchisees.
Citations: Item 1

Inexperienced Management

Low Risk

Explanation

This risk was not identified in the FDD Package. The management team, particularly the CEO and President Mark Collins, is disclosed as having industry experience dating back to 2015 with this entity and prior franchising history via the predecessor. A lack of relevant experience in both the specific industry and in managing a franchise system can be a significant risk, as it may lead to poor support and strategic errors. The disclosed experience appears relevant.

Potential Mitigations

  • A business advisor can help you further investigate the backgrounds and track records of the key executives listed in Item 2.
  • When speaking with current franchisees, inquire about their direct experiences with the management team's competence and support.
  • It is always prudent to have your attorney review the management team's history as disclosed in the FDD.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD Package. The franchisor's parent company is disclosed as The Shaded Oak Group, LLC, and Item 2 shows the same individual, Mark Collins, is President of both. This does not appear to be a traditional private equity ownership structure. Private equity ownership can sometimes lead to decisions that prioritize short-term returns over the long-term health of the franchise system, which is a risk to evaluate in other FDDs.

Potential Mitigations

  • A business advisor can help you research the ownership structure and any history of the parent company with other franchise systems.
  • It is wise to ask current franchisees if they have observed any changes in franchisor focus or support that might relate to ownership priorities.
  • Your attorney should review Item 1 and any related documents to confirm the ownership structure and its implications.
Citations: Item 1

Non-Disclosure of Parent Company

Medium Risk

Explanation

The FDD discloses that 1-800-Services is a subsidiary of The Shaded Oak Group, LLC. However, the financial statements provided in Item 21 are only for 1-800-Services, LLC, not the parent company. Given the franchisor's disclosed financial weakness (negative equity and recent losses), the financial stability of the parent company becomes highly material to assessing the overall risk. The absence of the parent's financials prevents a complete assessment of the entire enterprise's ability to support the franchise system.

Potential Mitigations

  • Your accountant should carefully evaluate the franchisor's standalone financials and note the absence of parent company data as a significant information gap.
  • A franchise attorney should advise you on whether parent company financials might be required under state or federal rules given the circumstances.
  • Request the parent company's financial statements from the franchisor to get a complete picture of the organization's financial health.
Citations: Item 1, Item 21, FDD Exhibit H

Predecessor History Issues

Medium Risk

Explanation

The FDD discloses a predecessor entity, 1-800-Plumber, Inc., from which 1-800-Services acquired assets in April 2015. The predecessor offered franchises from 2009 to 2012 and is no longer an existing entity. While this history is disclosed, it represents a past iteration of the franchise system. The significant franchisee turnover and financial instability under the current entity suggest that potential historical issues may not have been fully resolved, posing a risk to new franchisees.

Potential Mitigations

  • Your attorney should carefully review the information provided about the predecessor in Items 1, 3, and 4.
  • A business advisor can help you investigate if there is any publicly available information regarding the predecessor's performance or franchisee relations.
  • When speaking with long-term franchisees, if any exist, inquire about their experience with the transition from the predecessor.
Citations: Item 1

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 3 states that no litigation is required to be disclosed. A pattern of litigation, especially claims of fraud or misrepresentation brought by other franchisees, can be a major red flag indicating systemic problems. Similarly, a high volume of litigation initiated by the franchisor against franchisees can suggest an overly aggressive or difficult relationship. The absence of such disclosures is a positive sign, but does not eliminate all risk.

Potential Mitigations

  • Your attorney can conduct an independent search for litigation involving the franchisor or its principals that may not have met the threshold for disclosure.
  • It is good practice to ask current and former franchisees about any disputes they may have had with the franchisor, even if they did not result in litigation.
  • A business advisor can help you assess the overall health of franchisee-franchisor relations through due diligence calls.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
3
3
9

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
3
4
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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4

Legal & Contract Risks

Total: 16
6
9
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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5

Territory & Competition Risks

Total: 5
2
2
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
4
4
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
1
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
2
6
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
10
7
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.