Gotcha CoveredFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Gotcha Covered franchise requires a total initial investment of $123K – $217K, including a $70K franchise fee. Per the 2026 FDD, average unit revenue was $580K[2]. SBA 7(a) loans show a 12.7% charge-off rate across 55 loans[1]. Verdict grade: C. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $123K – $217K
- 45th pct Home Services
- Avg gross sales
- $580K
- 20th pct Home Services
- Royalty
- N/A
- Units
- 172
- 66th pct Home Services
- SBA default
- 12.7%
- system-wide median varies by category
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.4x in gross revenue, well above the typical 1.5-2.5x range.
Bottom line
- Total investment $123K – $217K including a $70K franchise fee.
- Average unit revenue of $580K/year (median $392K).
- Verdict C (Average) with a risk score of 65/100. SBA loan charge-off rate of 12.7% across 55 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 18 units terminated last reporting year (10.5% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Gotcha Covered Franchising, LLC
- Parent company
- FS PEP Holdco, LLC
- Incorporated in
- CO
- HQ
- 761 W. 1200 N., Suite 300, Springville, UT 84663
- Auditor
- Tanner LLC
- Audited financials
- Franchisor revenue
- $47.5M
- vs $75.3M prior year
Affiliated brands
- of Pr
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Gotcha Covered franchisees operate window covering retail and installation businesses, managing customer consultations, design selection, measurement, and professional installation of blinds, shades, and shutters. Daily operations include sales calls, in-home estimates, order management, and coordinating installation teams across an unprotected service territory.
- CEO
- Wanda Hoegren
- Headquarters
- UT
- Founded
- 2009
- FDD year
- 2026
- States available
- 36
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $70K | $70K |
| Working capital (3–6 mo) | $20K | $35K |
| Equipment, build-out, other | $33K | $112K |
| Total initial investment | $123K | $217K |
Source: Gotcha Covered 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$58K
10.0% margin
Unlevered ROIC
29%
EBITDA / total invested capital
Payback
3.4 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $123K – $217K
- Near category avg vs category
- Liquid capital req'd
- $20K – $35K
- Near category avg vs category
- Franchise fee
- $63K – $70K
- Below avg, review vs category
- Royalty
- Fixed monthly fee from $350 to $2,250 depending on months…
- Ad fund
- Fixed monthly fee from $125 to $1,000 depending on months…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $476 |
| Transfer fee | $15K |
| Renewal fee | $10 |
Financial Performance
- Avg gross sales
- $580K
- Per unit, per year
- Median gross sales
- $392K
- Item 19 type
- gross_sales
- Sample size
- 125 units
- vs category median 25 · large
- Range (low → high)
- $90K→$3.4M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 349 Home Services brands
vs Home Services averages
How Gotcha Covered Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 172
- Opened
- 24
- Last reporting year
- Closed
- 21
- Terminated
- 18
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 3
- Term expired, not renewed (per Item 20)
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +1.8%
- Net unit change last year
- 3-yr CAGR
- +5.5%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 1
- Terminated (3yr)
- 16
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
- Ceased ops
- 25.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 37 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 55
- Loan volume
- $7.0M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 12.7%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 68.2%
- 5-yr charge-off
- 25.0%
- Loans approved 2021+
- Active lenders
- 19
- Defaults
- 7
Vintage analysis
Gotcha Covered charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Gotcha Covered's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 14-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Gotcha Covered presents cautionary risk: stagnant unit growth, undisclosed profitability, unprotected territory, recent breach litigation, and opaque royalty burden relative to disclosed revenue.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Tanner LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 65 / 100 rating
- 01MEDNo average net income disclosed despite $580k avg revenue — profitability opaque
- 02MINORMinimal system growth (1.8% YoY) with only 172 units suggests market saturation or unit underperformance
- 03MINORUnprotected territory creates direct competition risk within service area
- 04HIGHRecent litigation (Oct 2025) for breach and customer deposit non-refund indicates franchisee financial distress and operational compliance issues
- 05MINORFixed royalty structure ($350-$2,250/month) may not scale fairly with seasonal revenue fluctuations typical in window coverings
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Households / ZIP Code |
| Protected territory | No |
| Territory sizeℹ | 30,000 households |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Utah |
| Litigation count | 1 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 100 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Not offered
- Item 10
- POS system
- Gotcha Linked
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Gotcha Linked
Item 20 · call current owners
Franchisee Contacts
150 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Gotcha Covered · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Gotcha Covered franchise?
The total investment to open a Gotcha Covered franchise ranges from $123K – $217K, with an initial franchise fee of $70K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Gotcha Covered franchise owners earn?
According to Item 19 of the Gotcha Covered FDD, the average gross sales per unit is $580K. The median is $392K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Gotcha Covered's franchise failure rate?
Based on SBA 7(a) loan data, Gotcha Covered has a charge-off rate of 12.7% across 55 loans, meaning 12.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Gotcha Covered franchise locations are there?
As of their most recent FDD filing, Gotcha Covered has 172 total units in the United States, including 163 franchised units and 0 company-owned units. 24 new units were opened in the latest reporting year.
Is Gotcha Covered a good franchise to buy?
FranchiseVerdict rates Gotcha Covered as a C-grade franchise with a risk score of 65 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.