Hello Garage Franchise Cost & 2026 FDD Data
36/100
Fourth tier
36 this brand56 Home Services medianlikely 32–40: narrower with more SBA loans (high confidence)
Higher is better · an editorial assessment, not investment advice
#2,761 of 3,068 graded brands
Why a D: Helped by unit economics, legal record and transparency. Held back by financial health and unit growth. See all six factors
- Total investment
- $165K – $205K
- Avg gross sales
- $807K
- “All Businesses (Corporate + Franchised) - Year 2”, 25 franchisees; not profit
- SBA charge-off
- 3 resolved of 17 loans: too few to judge
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Hello Garage franchise requires a total initial investment of $165K – $205K, including a $60K franchise fee. Once open, the ongoing royalty is 5.0%. Per the 2026 FDD, average gross sales per franchisee were $807K. This franchisor reports Item 19 per franchisee rather than per outlet, so the figure is not comparable with per-outlet averages (Item 19 group “All Businesses (Corporate + Franchised) - Year 2”, 25 franchisees; gross sales, not profit). Verdict grade: D (Fourth tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 7 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Home Services median
Top edge: green = better than the Home Services median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales per franchisee of $807K/year (outlet median $722K; Item 19 group “All Businesses (Corporate + Franchised) - Year 2”, 25 franchisees; gross sales, not profit). Averaged per franchisee, not per outlet - not comparable with per-outlet figures.
- GROWTHIn the latest Item 20 year, the number of franchised outlets fell by 30.
- FLAG11 units terminated last reporting year (10.7% of the franchised outlets open at the start of that year). Ask existing franchisees why.
AT STAKEOne unit at the Item 7 midpoint: $24K a year in payments on assumed SBA 7(a)-style terms.You put in about $37K of your own cash and personally guarantee a $148K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (4)
- Net -30 franchised outlets in 2025 (Item 20, outlet counts). Ask owners why outlets closed.
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- The franchisor receives rebates or payments from suppliers you buy from (Item 8, required suppliers).
- Item 15 (owner participation) requires the owner, or a principal the franchisor approves, to run the business day to day. Ask how much of the business that principal must own.
Checked and clear: no auditor doubt that the franchisor can keep operating, no pending lawsuit naming the franchisor and the full filing on file, and an Item 19 average from 25 units. Not on file here, so ask: SBA charge-off rate against the category median and jury-trial waiver.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 13% above the Home Services median ($164K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Hello Garage Franchising, LLC (Item 1: 11850 Valley Ridge Drive, Papillion, NE 68046) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown10 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $59.5K | $59.5K | |
| Minimum Opening Marketing Spend | $20K | $30K | |
| Vehicle Financing & Vehicle Wrap | $4.5K | $7K | |
| Opening Inventory Purchase and Initial Equipment Package | $70K | $85K | |
| Storage | $1.5K | $3K | |
| Business Licenses and Permits | $140 | $250 | |
| Computer System | $0 | $4K | |
| Travel Expenses to Attend Initial Training In-Person | $3K | $5K | |
| Insurance | $700 | $1.5K | |
| Additional Funds – 3 Months | $6K | $10K | |
| Total initial investment | $165K | $205K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross revenues |
| Marketing / ad fundBrand-wide marketing pool. Hello Garage Brand Fund Contribution currently 2% of Gross Revenue; may increase up to 3% | 2.0% of gross revenues |
| Technology feeTechnology Fee currently not charged; if implemented, $300/month, may increase up to 15% annually with 30 days notice | $300/month |
| Transfer fee | $10,000 |
| Renewal fee | $15,000 |
| Total fee loadbelow the Home Services median of 8.0% (lean) | 7.0% of sales |
A 7.0% total fee load is below the Home Services median of 8.0% (lean). More of each revenue dollar stays with the franchisee.
What do units actually make?
Average gross sales are 36% above the Home Services median ($593K).
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Hello Garage unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $807K (FDD p.40), and the royalty and ad fund take about $56K of that a year (Item 6). This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $24K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $185K Item 7 midpoint is a $148K loan, paid over 10 years at 10.5%: $24K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Hello Garage's past SBA 7(a) loans averaged 7.7% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $37K Assumption (the part the loan does not cover of the $185K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $148K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Hello Garage unit leave you each year after the loan payment?
Item 19: $806,813 average for 25 franchisees (All Businesses (Corporate + Franchised) - Year 2). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
Item 6, as stored, a year. A fixed fee, so it comes off EBITDA as dollars, not a share of sales.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.
Illustrative category typicals, not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Item 7 midpoint of $165K to $205K
Item 7's $6K to $10K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $148K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD · filed by Hello Garage Franchising, LLC
Financial performance
Percentile ranks within Home Services
Each rank is among the Home Services brands that report that figure (the count is under each bar).
vs Home Services medians
How Hello Garage compares
Per franchisee, not per outlet - the category median is per-outlet only, so no comparison is shown
Category median of published Home Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Who are you contracting with?
Hello Garage Franchising, LLC, owned by Nancy J. Thrasher 2015 Irrevocable Family Trust.
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- Hello Garage Franchising, LLC
- Parent company
- Nancy J. Thrasher 2015 Irrevocable Family Trust
- FDD Item 1, page 8 of the 2026 FDD
- CEO title
- CEO
- Dan Thrasher
- Incorporated in
- NE
- HQ
- 11850 Valley Ridge Drive, Papillion, NE 68046
- Auditor
- Forvis Mazars, LLP
- Audited financials
- Franchisor revenue
- $2.6M
- latest fiscal year in the 2026 FDD; $3.1M the year before
Overview
About
Commercial and residential garage renovation products and services, including concrete floor coatings, storage cabinets, slatwall, lighting and other approved products and services.
- CEO
- Dan Thrasher
- States and territories listed
- 29
- registered or offered in, as the filing lists them (DC and territories included); not where units may open
Is the system healthy?
-46 franchised outlets over the two years to 2025 (119 to 73, -38.7% in total, -21.7% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 14
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
Item 20 · franchised units at year end
Franchised units fell from 119 in 2023 to 73 in 2025
Axis does not start at zero.
Source and method
A system that lost more than 10% of its franchised outlets across the Item 20 years is a red flag. Check whether closures are concentrated in specific regions.
Government records
SBA loan data
Matched to this brand from SBA 7(a) and 504 FOIA loan records.
- Loans on file
- 17
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $2.0M
- Average loan
- $120K
- loan volume divided by loans
- Charge-off rate
- 3 resolved of 17 loans: too few to judge
- Limited SBA coverage: 17 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
- Paid in full
- 3 resolved of 17 loans: too few to judge
- Recent-loan charge-off
- 3 resolved of 17 loans: too few to judge
- Lenders
- 7
- Average interest rate
- 7.7%
- Jobs reported
- 96
- Lender concentration
- 47%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Borrower mix: of the 17 loans with a recorded business age, 15 (88%) went to startups or businesses under two years old and 2 (12%) to established businesses or ownership changes.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Hello Garage from SBA 7(a) FOIA loan records.
- Average SBA guarantee
- 70%
- Average interest rate
- 7.7%
- Lender concentration
- 47%
- Jobs reported
- 96
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| The Huntington National Bank | ||
| 8 | $889K | Not on file |
| United Midwest Savings Bank National Association | ||
| 3 | $450K | Not on file |
| First Bank of the Lake | ||
| 2 | $159K | Not on file |
| U.S. Bank, National Association | ||
| 1 | $30K | Not on file |
| The Fidelity Bank | ||
| 1 | $300K | Not on file |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| MN Minnesota | 3 | 0 | Too few1 resolved |
| CA California | 2 | 0 | Too few0 resolved |
| GA Georgia | 2 | 0 | Too few0 resolved |
| IN Indiana | 2 | 0 | Too few0 resolved |
| PA Pennsylvania | 2 | 0 | Too few1 resolved |
| AZ Arizona | 1 | 0 | Too few0 resolved |
| IL Illinois | 1 | 0 | Too few1 resolved |
| NC North Carolina | 1 | 0 | Too few0 resolved |
| NY New York | 1 | 0 | Too few0 resolved |
| OK Oklahoma | 1 | 0 | Too few0 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Borrower profile
The SBA's own business-age labels (3)
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
What are the risks?
Main risk: a shrinking system. Franchised outlets fell from 119 to 73 over the two years to 2025.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade D: Fourth tier, 36/100 (category median 56); the full grade is at the top of the page.
How the grade is built
Why a D, factor by factor
- Financial health Weighs on itAudited financials; no going-concern doubt; franchisor net income positive; negative net worth
- Unit economics HelpsAvg gross sales $807K on a $185K investment midpoint, 4.4x (gross sales, not profit)
- Unit growth Weighs on it, weakest dimension-46 franchised outlets over the two years to 2025 (119 to 73, -38.7% in total, -21.7% a year compounded); turnover 34.5%
- Scale Neutral73 franchised units, +14 company-owned (87 in all); franchising since 2020; mostly company-owned (1% franchised)
- Legal Helps1 matter naming the franchisor among the Item 3 matters we list (1.1 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; audited financials
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
Franchisor and affiliate brought a collection suit against a former franchisee for amounts owed (Case No. 25-5240, Douglas Co. Dist. Ct., filed June 2025).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Forvis Mazars, LLP
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Franchisor takes supplier rebates: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Litigation case detail1 matter · Item 3
Litigation cases
The franchisor
Status not stated in the filing (1)
Hello Garage Franchising, LLC, Supportworks, Inc., et. al v. Family Garage, LLC and Jerome Touchstone
Brought against a franchisee · filed 2025-06-20 · Douglas C. Dist. Ct. · 25-5240
“… Case No. 25-5240 (Douglas C. Dist. Ct. June 20, 2025).”Page 11 of the 2026 FDD, Item 3
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 1 |
|---|---|
| Protected territory | Yes |
| Exclusive territory | No |
| Territory population | 75,000 |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | The owner, or a principal the franchisor approves, must run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 50 mi |
| Right of first refusal | Yes |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Mandatory arbitration | No |
| Governing law | Nebraska |
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 43 hrs
- On-the-job training
- 30 hrs
- Training location
- Papillion, Nebraska (in-person) and franchisee's office (virtual)
- Ongoing training
- Required
- Site selection
- Franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- GarageView / Hello Garage CRM
- Operating tech stack
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Franchisee contacts
We hold no owner list for this brand. Item 20 of the FDD lists the current and former owners; the free FDD is the source.
Frequently asked questions
How much does it cost to open a Hello Garage franchise?
Per the 2026 FDD, the total investment to open a Hello Garage franchise ranges from $165K to $205K, with an initial franchise fee of $60K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Hello Garage franchise owners earn?
According to Item 19 of the Hello Garage FDD, average gross sales were $807K (Item 19 group “All Businesses (Corporate + Franchised) - Year 2”, 25 franchisees; gross sales, not profit). The median is $722K. Averaged per franchisee, not per outlet - not comparable with per-outlet figures. What an owner keeps depends on location, operating costs and management.
Who owns Hello Garage?
Hello Garage is franchised by Hello Garage Franchising, LLC. Its parent company is Nancy J. Thrasher 2015 Irrevocable Family Trust. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Hello Garage FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Hello Garage FDD and qualifies whose outlets they describe.
What is Hello Garage's franchise failure rate?
There is no published franchise failure rate, and Hello Garage has too few resolved SBA 7(a) loans on file (fewer than 10) to show an SBA charge-off rate that would mean anything. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. Review the turnover and closure figures in Item 20 of the FDD and speak with current and former franchisees.
How many Hello Garage franchise locations are there?
Per the 2026 FDD, Hello Garage has 73 franchised units and 14 company-owned (87 in all). In the latest year, the number of franchised outlets fell by 30.
Is Hello Garage a good franchise to buy?
FranchiseVerdict gives Hello Garage a D Verdict grade (Fourth tier) with a verdict score of 36 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by unit economics, legal record and transparency. Held back by financial health (audited financials) and unit growth (-46 franchised outlets over the two years to 2025: 119 to 73, -38.7% in total, -21.7% a year compounded). The “Why a D” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Home Services franchises
Similar investment first, then by grade
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.