Bottom line
- Total investment $201K – $247K including a $60K franchise fee, 10.0% ongoing royalty.
- Average unit revenue of $737K/year (median $508K).
- Rated STRONG with a risk score of 48/100. SBA loan default rate of 0.0% across 32 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 HOODZ unit return on the cash you put in?
Unlevered ROIC · per unit
24%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 HOODZ units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$147K
on $737K purchase
Total debt
$590K
SBA $0.4M + senior + seller note
Overview
About
HOODZ franchisees operate commercial kitchen hood cleaning and maintenance services for restaurants, food service facilities, and hospitality businesses. Day-to-day operations include scheduling and performing hood vent cleaning, fire suppression system maintenance, compliance inspections, and customer relationship management. This is a service-based, labor-intensive business model with recurring revenue potential from contracted clients.
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 · 31 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
HOODZ presents meaningful caution due to active litigation alleging franchisor misconduct, missing profitability data, and stagnant unit growth, warranting deep validation before $200k+ investment.
Score breakdown · what drove the 48 / 100 rating
- 01HIGHActive litigation from defaulted franchisee alleging breach of good faith, Michigan Investment Law violations, and tortious interference—suggests potential franchisor conduct issues
- 02MEDNet income not disclosed in Item 19—inability to verify actual profitability against $737k average revenue claim
- 03MINORMinimal unit growth of 3.1% YoY with only 142 units indicates stagnant system expansion and possible market saturation
- 04MEDHigh royalty rate (10% at entry) combined with undisclosed net income creates uncertainty about true unit economics
- 05HIGHGoing concern status is False but litigation risk and slow growth suggest financial stability questions
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
65 numbers
One-time purchase · CSV download · Validation questions included
FDD download
HOODZ · FDD (2026) PDF