Aire-Master grows franchise, headquarters

Meanwhile, a $1.2 million, 16,000-square-foot expansion project is just beginning at its Nixa headquarters, 1821 N. State Hwy. CC.

The new franchisees – Ken Peterson in Akron, Ohio, Joe and Janelle Monticelli for Passaic and Bergen counties in New Jersey, Mike Bernard in St. Joseph and Keith Bockhahn in Salem, Ore. – give Aire-Master 66 franchise operations in 38 states and two Canadian provinces.

Aire-Master began franchising in 1976. Franchisees offer restroom hygiene service and products manufactured in Nixa since 1958.

Aire-Master Vice President Walter Heinle said the new construction will double the company’s manufacturing and warehouse space to keep up with a relatively new line of business: contract packaging. Aire-Master began producing products with and for other companies about five years ago.

Contract packaging took off last year, Heinle said, as sales were $751,000, a 423 percent increase over 2003.

“That’s the real reason for this expansion,” Heinle said. “It’s because of the new products that we’re getting into with these other companies.”

Aire-Master has partnered with Connecticut-based Lapine Inc. to produce Go-gel, a hand sanitizer sold in several northeastern grocery stores. Heinle said the company has appointments set with Kroger officials. Go-gel is sold in four different colors and two sizes.

Franchisees generated about $15 million in sales during fiscal year 2005, of which the company collected about $750,000. Corporate sales were $5.7 million for the year, which ended in March, Heinle said. Corporate sales were 8 percent higher than FY 2004.

“Hopefully, with our expansion and our plans (sales growth) will continue,” Heinle said. “We anticipate that it will.”

Aire-Master charges a $22,000 franchise fee – though Heinle said the fee is increasing this year – and 5 percent royalties. Start-up costs range from $30,000 to $60,000.

The expansion will quadruple the machine capacity and grow production capabilities, Heinle said. Eoff & Associates is the general contractor and Bill Derington is architect for the project, which has a September completion date.

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