Groovy Hues Peace Love Paint Powerwash
Bottom line
- Total investment $158K – $204K including a $60K franchise fee.
- Average unit revenue of $1.1M/year (median $683K).
- Rated STRONG with a risk score of 49/100. SBA loan default rate of 0.0% across 78 loans (below the industry average).
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 Groovy Hues Peace Love Paint Powerwash unit return on the cash you put in?
Unlevered ROIC · per unit
53%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Groovy Hues Peace Love Paint Powerwash units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$670K
on $3.3M purchase
Total debt
$2.7M
SBA $1.7M + senior + seller note
Overview
About
Groovy Hues franchisees operate a dual-service business offering interior/exterior painting and power washing services to residential and commercial customers. Day-to-day operations involve job scheduling, crew management, customer acquisition/retention, and quality control on job sites. Revenue is generated through service calls, with customer acquisition typically driven by local marketing, referrals, and digital channels.
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 · 11 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
Significant franchisor stability concerns (going concern issues + active litigation) combined with missing profitability data and aggressive growth create a CAUTION-to-HIGH-RISK profile requiring extensive due diligence before investment.
Score breakdown · what drove the 49 / 100 rating
- 01HIGHGoing Concern status is FALSE — franchisor may face existential financial/operational challenges
- 02HIGHActive litigation involving parent company ownership and governance creates uncertainty about franchisor stability and decision-making authority
- 03MEDNet Income not disclosed in FDD Item 19 — impossible to assess actual profitability despite $1.1M average revenue claim
- 04MINORTiered royalty structure with $500/month minimum may create cash flow pressure for franchisees in early/slower periods
- 05HIGHRapid unit growth (35.3% YoY) with litigation simultaneously suggests potential quality control issues or franchisee dissatisfaction being masked
- 06MINORHigh franchise fee ($59,500) combined with investment range ($157.5K-$204.5K) limits margin for error in startup phase
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
28 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Groovy Hues Peace Love Paint Powerwash · FDD (2025) PDF