HOODZ Franchise
Cost, fees, owner earnings, closure rate and litigation for a HOODZ franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
HOODZ discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Gross sales only; excludes royalties, payroll, benefits, taxes, professional fees, depreciation, financing costs. Multi-territory operators averaged $1.78M; single-territory $737K.
What a HOODZ franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $59,900 | Item 5 — paid up front, before you open |
| Royalty | 10% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 1% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 11% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $170,538 – $246,807 | Item 7 — franchisor's own low/high estimate |
Tiered royalty: 10% up to $1M, 9% $1M-$2M, 8% $2M-$3M, 7% above $3M; minimum royalty applies.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
HOODZ system size and owner turnover
| Total outlets | 142 |
| Ceased operations | 1 |
| Terminated by franchisor | 1 |
| Transferred to new owners | 1 |
| Closure rate | 0.7% of outlets |
Low terminations/transfers; 1 franchisee ceased 2025; stable growth trajectory.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is HOODZ worth it? — how it compares to 47 similar franchises
| Ongoing fees | 11% of sales | steeper than 70% of cleaning services franchises |
| Startup cost | from $170,538 | pricier than 80% of peers |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 0.7% of outlets | better than most (median 2.4%) |
| Disclosed lawsuits | 1 | about average |
Benchmarked against every cleaning services franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a HOODZ
The franchisor's framing: Gross sales only; excludes royalties, payroll, benefits, taxes, professional fees, depreci… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
HOODZ franchise — frequently asked
- How much does a HOODZ franchise cost?
- The FDD lists a total initial investment of about $170,538–$246,807, including a $59,900 initial franchise fee.
- How much do HOODZ franchise owners make?
- Gross sales only; excludes royalties, payroll, benefits, taxes, professional fees, depreciation, financing costs. Multi-territory operators averaged $1.78M; single-territory $737K. We grade this disclosure C for honesty.
- What are the HOODZ franchise fees?
- HOODZ's FDD discloses a $59,900 initial franchise fee, a 10% royalty on gross sales, a 1% advertising-fund contribution, for roughly 11% of gross sales in recurring fees before rent, labor, or debt service. Tiered royalty: 10% up to $1M, 9% $1M-$2M, 8% $2M-$3M, 7% above $3M; minimum royalty applies.
- What is the HOODZ franchise profit margin?
- HOODZ does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Gross sales only; excludes royalties, payroll, benefits, taxes, professional fees, depreciation, financing costs. Multi-territory operators averaged $1.78M; single-territory $737K. Recurring fees alone take about 11% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the HOODZ franchise failure rate?
- Low terminations/transfers; 1 franchisee ceased 2025; stable growth trajectory.
- How many HOODZ locations are there?
- HOODZ's FDD reports 142 total outlets, with 1 that ceased operations in the most recent reporting year and 1 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does HOODZ have complaints or lawsuits?
- HOODZ discloses 1 legal matter in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a HOODZ franchise worth it?
- It depends on the numbers, not the pitch. HOODZ scores C on disclosure honesty, carries about 11% of sales in ongoing fees, and discloses 1 legal matters. Get the real owner take-home before you sign.
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Compare HOODZ to similar franchises
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Source: MN CARDS 35752-202604-13 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with HOODZ or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.