Hoodz Franchise Cost, Revenue & Review 2026
- Investment
- $201K – $247K
- Disclosed sales
- $737K
- gross sales, not profit
- SBA charge-off
- Limited · 22 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
HOODZ is a B2B franchise providing commercial kitchen exhaust-hood cleaning and related maintenance for restaurants and foodservice operators. Franchisees run a route-based service scheduling recurring cleanings and inspections in a territory.
FranchiseVerdict summary · 2026
A HOODZ franchise requires a total initial investment of $201K – $247K, including a $30K – $60K franchise fee and an ongoing 10.0% royalty[2]. Per the 2026 FDD, average revenue per franchisee was $737K. This franchisor reports Item 19 per franchisee rather than per outlet, so the figure is not comparable with per-outlet averages[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: 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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $201K – $247K
- 72nd pct Cleaning & Ma…
- Avg gross sales
- $737K
- Per franchisee, not per outletOutlet subset
- Royalty
- 10.0%
- 72nd pct Cleaning & Ma…
- Units
- 142
- 69th pct Cleaning & Ma…
- SBA charge-off
- N/A
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = favorable by >10% vs Cleaning & Maintenance median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $201K – $247K including a $60K franchise fee, 10.0% ongoing royalty.
- RETURNSAverage revenue per franchisee of $737K/year (median $508K) (reported for a subset of outlets rather than the whole system). Averaged per franchisee, not per outlet - not comparable with per-outlet figures.
- RISKVerdict A (Strongest tier), verdict score 83/100 (higher is better).
- GROWTHPositive: net +4 franchised outlets in the latest year (5 opened, 1 closed) (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- HOODZ International, LLC
- Parent company
- BELFOR Franchise Group, LLC
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- BELFOR Holdings, Inc.
- FDD Item 1, page 9 of the 2026 FDD
- CEO title
- Chief Executive Officer
- Sheldon Yellen
- Incorporated in
- DE
- HQ
- 5405 Data Court, Ann Arbor, MI 48108
- Auditor
- BDO USA, P.C.
- Audited financials
- Franchisor revenue
- $30.1M
- vs $29.5M prior year
Independent franchisee associations
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Same owner · FDD Item 1, page 9
11 other brands on this site name BELFOR Holdings, Inc. as parent or ultimate parent in their own FDD.
- 1-800 WATER DAMAGED
- BLUE KANGAROO PACKOUTZA
- COOL BINZB
- Clear Pest ProsB
- DUCTZA
- Helpful HeroesC
- JUNKCO+B
- NHanceB
- THE PATCH BOYSB
- Z PLUMBERZA
- redbox+B
Portfolio: BELFOR Franchise Group
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Sheldon Yellen
- Headquarters
- MI
- Founded
- 2008
- FDD year
- 2026
- States available
- 34
Can you afford it, and what does the money buy?
Entry cost runs 32% above the typical cleaning & maintenance franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $10K | $30K |
| Equipment, build-out, other | $131K | $157K |
| Total initial investment | $201K | $247K |
Source: HOODZ 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $201K – $247K
- Bottom third — review vs category
- Liquid capital req'd
- $10K – $30K
- Top 40% of category vs category
- Franchise fee
- $30K – $60K
- Bottom third — review vs category
- Royalty
- 10.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $3K |
| Transfer fee | $10K |
| Renewal fee | $6K |
| Total fee load | 11.0% of rev |
What do units actually make?
Average unit sales run 37% above the cleaning & maintenance norm.
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Reported for a subset of outlets rather than the whole system
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for HOODZ until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$244K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one HOODZ unit return on the cash you put in?
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.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
Financial Performance
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $737K
- Per franchisee, per year — not per outlet
- Median gross sales
- $508K
- Per franchisee, not per outlet
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 30 franchisees
- vs category median 32
- Range (low → high)
- $193K→$2.6MCited, not corroborated — printed on page 73 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 191 Cleaning & Maintenance brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
The average franchisee generates $737K/year in gross sales. Median is $508K — top performers pull the average up, so a typical unit earns less. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 11.0% — above the Cleaning & Maintenance median of 8.3%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System roughly stable (+4.7% 3-year CAGR) with 142 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Cleaning & Maintenance medians
How Hoodz Compares
Per franchisee, not per outlet - the category median is per-outlet only, so no comparison is shown
Category median of published Cleaning & Maintenance 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.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 142
- Opened
- 5
- Last reporting year
- Closed
- 1
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.7%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (3-yr)
- +4.7%
- Net unit change over 3 years
- 3-yr CAGR
- +4.7%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 1
- Reacquired
- 0
- Franchisor bought back
- Termination rate
- 22.2%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 34 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
68 current owners across 34 states; 1 former (terminated, transferred or not renewed) listed separately.
- FL 9
- CA 4
- GA 4
- PA 4
- VA 4
- IN 3
- MO 3
- OH 3
- TX 3
- CO 2
- LA 2
- NC 2
- +22 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 22
- Loan volume
- $6.7M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- Limited · 22 loans
- Limited SBA coverage: 22 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 22 loans
- 5-yr charge-off
- Limited · 22 loans
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 1
- Typical loan rate
- 7.9%
- avg rate to borrowers
- Franchised industry avg
- 15.4%
- n=1,491 loans
- Jobs supported
- 143
- 2.1 per loan
- Lender concentration
- 14%
- top lender's share
Borrower mix: 62% went to startups / new businesses, 38% to established operators
Franchise vs independent — in janitorial services, franchised businesses charge off at 15.4% vs 22.8% for independents — franchising is associated with 32% lower SBA default risk in this category.
Top lenders financing Hoodz franchisees
Showing 3 of 14 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Hoodz from SBA 7(a) FOIA data.
- Principal loss rate
- 2.0%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 7.91%
- Avg chargeoff amount
- $134K
- Lender concentration
- 13.6%
- Job velocity
- 2.1 per $100K
- NAICS benchmark
- 16.8%
- NAICS 561720
- Jobs supported
- 143
Top SBA lendersTop lender holds 14% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Celtic Bank Corporation | 3 | $450K | 0.0% |
| 2 | Stearns Bank National Association | 3 | $295K | 0.0% |
| 3 | United Midwest Savings Bank National Association | 3 | $650K | 100.0% |
| 4 | BayFirst National Bank | 2 | $837K | N/A |
| 5 | Regions Bank | 2 | $740K | N/A |
| 6 | Truist Bank | 1 | $25K | 0.0% |
| 7 | SouthState Bank, National Association | 1 | $241K | 0.0% |
| 8 | The Huntington National Bank | 1 | $68K | 0.0% |
| 9 | CDC Small Business Finance Corp. | 1 | $64K | 0.0% |
| 10 | Busey Bank | 1 | $247K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 3 | 0 | 0.0% |
| NCNorth Carolina | 3 | 0 | -- |
| FLFlorida | 2 | 0 | 0.0% |
| INIndiana | 2 | 0 | 0.0% |
| MOMissouri | 2 | 0 | 0.0% |
| SCSouth Carolina | 2 | 0 | -- |
| COColorado | 1 | 0 | -- |
| IAIowa | 1 | 0 | -- |
| ILIllinois | 1 | 0 | 0.0% |
| MDMaryland | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Zhu Elite Enterprises, Inc. v. HOODZ International, LLC – adversary proceeding in bankruptcy court (N.D. Texas); franchisee defaulted for out-of-territory conduct asserting declaratory relief, breach of implied covenant, Michigan Investment Law violations, and other claims. HOODZ contesting.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · BDO USA, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 financial statements are the consolidated financials of the parent, BFG Holdco, Inc. and its subsidiaries (not HOODZ International, LLC standalone), in dollars in thousands. FY ended Dec 31, 2025. Net Revenue $30,117K (2025) vs $29,538K (2024). Net Income $45K in 2025 after operating loss of $710K, following large goodwill-impairment-driven losses in 2024 ($11,108K loss) and 2023 ($44,277K loss). Stockholders' equity $59,320K. Other income (non-operating) $420K.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 83 / 100 verdict
- 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
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 11.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | defined by Retail Food Service Customers (RFSCs): Standard Territory 1,600-3,000 RFSCs; Express Territory 750-1,599 RFSCs |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Curable defaultsℹ | 15 |
| Mandatory arbitration | Yes |
| Arbitration location | Ann Arbor, Michigan |
| Jury trial waiver | No |
| Governing law | MI |
| Litigation count | 1 |
View Item 3 litigation summary
Zhu Elite Enterprises, Inc. v. HOODZ International, LLC – adversary proceeding in bankruptcy court (N.D. Texas); franchisee defaulted for out-of-territory conduct asserting declaratory relief, breach of implied covenant, Michigan Investment Law violations, and other claims. HOODZ contesting.
Items 10, 11
Training & Operations
- Classroom training
- 78 hrs
- On-the-job training
- 11 hrs
- Training location
- Ann Arbor Training Center / Onsite in Field
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
- POS system
- HOODZ Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: HOODZ Software
Item 20 · call current owners
Franchisee Contacts
69 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a HOODZ franchise?
The total investment to open a HOODZ franchise ranges from $201K – $247K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do HOODZ franchise owners earn?
According to Item 19 of the HOODZ FDD, the average gross sales per unit is $737K. The median is $508K. Important context: Averaged per franchisee, not per outlet - not comparable with per-outlet figures; Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns HOODZ?
HOODZ is franchised by HOODZ International, LLC. Its parent company is BELFOR Franchise Group, LLC. The ultimate parent named in the FDD is BELFOR Holdings, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the HOODZ 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 HOODZ FDD and qualifies whose outlets they describe.
What is HOODZ's franchise failure rate?
SBA 7(a) loan charge-off data is not available for HOODZ (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many HOODZ franchise locations are there?
As of their most recent FDD filing, HOODZ has 142 total units in the United States, including 135 franchised units and 7 company-owned units. 5 new units were opened in the latest reporting year.
Is HOODZ a good franchise to buy?
FranchiseVerdict rates HOODZ as a A-grade franchise with a verdict score of 83 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent HOODZ, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). 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.