Bottom line
- Total investment $123K – $217K including a $70K franchise fee.
- Average unit revenue of $580K/year (median $392K).
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 93 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Gotcha Covered unit return on the cash you put in?
Unlevered ROIC · per unit
29%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Gotcha Covered units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$348K
on $1.7M purchase
Total debt
$1.4M
SBA $0.9M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 27 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 44 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Gotcha Covered · FDD (2026) PDF