Health Mor Review and Profile

Health-Mor manufactures the FILTERQUEEN Indoor Air Quality System. The FILTERQUEEN System consists of the Majestic surface cleaner and the Defender room air cleaner, which are used to remove both surface and airborne allergens, dirt, and dust from home interiors. For over 70 years, FILTERQUEEN products have been sold exclusively through direct, in-home sales. Today there is a network of independent FILTERQUEEN Distributors throughout the United States, Canada, and over forty other countries world-wide.

FilterQueen traces its history to 1928, when Frank and Martin Callahan and Ray Owen founded Sanitation Systems, Inc. in Chicago as a direct-sales distributorship. The founders introduced a Health-Mor upright vacuum manufactured by P.A. Geier in 1929 and renamed the business Health-Mor Sanitation Systems in May 1930. The company later developed the cyclonic, cone-filtered cleaning system that became the FilterQueen brand and began manufacturing its own machines in 1952. Health-Mor went public in 1969, and its expansion under Kirk Foley increased annual sales from $39.3 million in 1989 to $133.6 million in 1994, with net income reaching $7.2 million.

The current product line centers on the Majestic surface-cleaning system, the Defender room air purifier, replacement filters, attachments and parts. The Majestic is a bagless canister vacuum using cyclonic airflow and disposable filter cones and is currently listed at $1,999 through the company's online store. The Defender is an FDA-cleared Class II medical air-cleaning device under clearance number K010616 and is marketed for spaces of as much as 700 square feet. Both products continue to be assembled at the company's Ohio manufacturing operation.

Health-Mor has traditionally sold FilterQueen products through in-home demonstrations conducted by independent sales offices and distributors. Its "Pure Opportunity" program allows salespeople to progress through Specialist, Candidate Distributor, Regional Distributor, Master Distributor and Premier Master Distributor levels. Initial advancement required selling one complete FilterQueen indoor-air-quality system, or two individual units, and completing ten qualified home presentations. The program also rewarded the development of new distributor offices: Regional Distributor advancement material credited sales from directly descended offices one level deep and required candidates to meet substantial operating-capital and inventory requirements.