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HOODZ Franchise ProfileCleaning Franchises > Commercial Cleaning |
What is the Initial Investment for a HOODZ Franchise?
The initial investment for a HOODZ franchise ranges from $5,990 to $231,992. This includes a franchise fee of $59,900. Potential franchisees should also be prepared for additional startup costs and a cash requirement between $10,000 and $30,000. Understanding the full scope of these financial commitments is crucial for making an informed decision.
What Are the Ongoing Fees for HOODZ Franchisees?
HOODZ franchisees are subject to a royalty fee of 10% on gross sales, along with a marketing fee of 1%. These ongoing fees are essential for maintaining brand standards and supporting marketing efforts. Franchisees should factor these costs into their financial planning to ensure sustainable profitability.
What is the Average Revenue Potential for HOODZ Units?
HOODZ units have shown impressive revenue potential, with an average annual revenue of $1,536,110. The median annual revenue stands at $793,269, while the lowest recorded revenue is $52,812, and the highest reaches $6,916,939. This variance highlights the importance of location and operational efficiency in maximizing revenue.
How Long Does it Take to Breakeven with a HOODZ Franchise?
Franchisees can expect to reach breakeven within approximately 24 months. This timeline aligns with the investment payback period of 24 months, indicating a relatively quick return on investment compared to other franchise models. Understanding this timeframe can help potential franchisees set realistic financial expectations.
HOODZ Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
HOODZ Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 134 | 134 | 135 |
| Net Change YoY | 0 | 1 | |
| Franchised Units | 128 | 128 | 129 |
| Net Change YoY | 0 | 1 | |
| Corporate Units | 6 | 6 | 6 |
| Net Change YoY | 0 | 0 |
Investment Overview
The HOODZ franchise offers a compelling investment opportunity with an initial franchise fee of $59,900 and a total initial investment ranging from $5,990 to $231,992. Prospective franchisees should be prepared with a cash reserve of $10,000 to $30,000 and a net worth of $100,000 to $1,000,000. This structure allows for flexibility depending on the chosen location and operational scale.
Revenue Potential
Franchisees can expect significant revenue potential, with the average annual revenue per unit reaching approximately $1,536,110. The median annual revenue stands at $793,269, while the highest reported revenue per unit is an impressive $6,916,939. This financial performance highlights the robust market demand for HOODZ services.
Fees and Royalties
HOODZ requires a royalty fee of 10% on gross sales along with a marketing fee of 1%. These fees are essential for maintaining brand strength and supporting ongoing marketing efforts, which ultimately benefit all franchisees by driving customer traffic and enhancing brand visibility.
Breakeven and Payback
Franchisees can anticipate a breakeven period of around 24 months, which is indicative of a healthy return on investment. The investment payback timeframe mirrors this breakeven point, allowing franchisees to regain their initial investment relatively quickly, assuming average revenue performance.
Corporate and Franchise Units
As of 2023, HOODZ operates a total of 135 units, with 129 being franchised and 6 corporate-owned. The steady growth in franchised units from 128 in 2022 to 129 in 2023 reflects the brand's stability and appeal in the market, making it an attractive option for potential investors.
Financial Performance Metrics
The average annual revenue for HOODZ units is reported at $1,026,809, with a gross profit margin of 68.3%. Operating expenses average around $738,921, leading to an EBITDA of $287,953, or 28.1% of revenue. These figures underscore the franchise's potential for profitability and efficient cost management.
Frequently Asked Questions
The initial investment for a HOODZ franchise ranges from $5,990 to $231,992, which includes the franchise fee of $59,900 and other startup costs.