FranchiseVerdict
Halloween Express logo
FV-01142·CAUTIONExcellent86FDD 2022

Halloween Express

RetailFranchising since 2005Website
Investment
$170K – $268K
39th pct Retail
Avg revenue
53rd pct Retail
Royalty
5.0%
15th pct Retail
Units
49
44th pct Retail
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $170K – $268K including a $10K franchise fee, 5.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated CAUTION with a risk score of 75/100. SBA loan default rate of 0.0% across 5 loans (below the industry average).
  • System contracting at -35.5% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).

Item 1 · who you're contracting with

The Franchisor

Legal entity
HEX NEWCO, LLC
Incorporated in
Kentucky
HQ
302 N. Main Street, Owenton, Kentucky 40359
Auditor
Goldberg & Davis, CPAs
Audited financials
Franchisor revenue
$555K
vs $398K prior year

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 Halloween Express unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: retail
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $170K–$268K
Working capital
$
FDD reports $13K–$25K

Unlevered ROIC · per unit

22%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$53K
EBITDA margin
7.0%
Total invested
$238K
Payback
54 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Halloween Express franchisees operate seasonal pop-up retail stores that sell costumes, decorations, and party supplies, typically opening 6-8 weeks before Halloween. Daily operations include inventory management, point-of-sale transactions, staffing temporary employees, and merchandise displays in leased retail spaces that are often temporary locations.

CEO
Holly Bowling
Founded
2005
FDD year
2022
States available
18

Item 7 · what it costs

The Vitals

Total investment
$170K – $268K
All-in to open one unit
Liquid capital
$13K – $25K
Cash you must have on hand
Franchise fee
$10K
Royalty
5.0%
Percentage of Gross Sales · typical 6–8%
Ad fund
n/d
Total fee load
5.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
49
Opened
4
Last reporting year
Closed
13
Turnover rate
26.5%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Multi-unit owners
1.0%
Net growth (yr3)
-15.5%
Net unit change last year
3-yr CAGR
-35.5%
Compounded over last 3 years
2020
49-9
Franchised units
2021
58
Franchised units
2022
76
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 23 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 23 states
Not registered

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.

Total loans
5
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

75
Risk · 0-100
CAUTION75 / 100

Halloween Express presents high risk due to significant unit decline, undisclosed financial performance, multi-state litigation, and lack of transparency around franchisee earnings.

Score breakdown · what drove the 75 / 100 rating

  1. 01MINOR15.5% unit contraction year-over-year indicates a shrinking franchise system with potential structural problems
  2. 02MEDNo disclosed average revenue or net income data (Item 19) prevents proper ROI validation and suggests weak or inconsistent unit economics
  3. 03HIGHMultiple litigation matters across three states (Colorado, Virginia, Washington) signal compliance issues and regulatory friction
  4. 04MINORSeasonal business model creates cash flow volatility and limits franchisee income stability outside peak Halloween season
  5. 05MINORInitial investment range of $170K-$267K is substantial for a declining system with no proven profitability benchmarks

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
5 years
Renewal term
5 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
3
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Ohio

Item 11

Training & Operations

Classroom training
40 hrs
On-the-job training
0 hrs
POS system
RICS Retail Inventory Control System
Operating tech stack

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

50 numbers

Locked
(502) 484-••••
The franchisor is HEX NEWCO, LLC, formerly Halloween Express, LLC, located at
KY
(785) 339-••••
KS
(619) 819-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

Halloween Express · FDD (2022) PDF

Single-page checkout · instant download · CSV export of contacts available separately above