HoodzFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A HOODZ franchise requires a total initial investment of $201K – $247K, including a $60K franchise fee and an ongoing 10.0% royalty[2]. Per the 2026 FDD, average unit revenue was $737K[2]. SBA 7(a) loans show a 4.5% charge-off rate across 22 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $201K – $247K
- 69th pct Cleaning & Ma…
- Avg gross sales
- $737K
- 28th pct Cleaning & Ma…
- Royalty
- 10.0%
- 50th pct Cleaning & Ma…
- Units
- 142
- 68th pct Cleaning & Ma…
- SBA default
- 4.5%
- system-wide median varies by category
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = >15% above Cleaning & Maintenance avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.3x in gross revenue, well above the typical 1.5-2.5x range.
Bottom line
- Total investment $201K – $247K including a $60K franchise fee, 10.0% ongoing royalty.
- Average unit revenue of $737K/year (median $508K).
- Verdict A (Top Quintile) with a risk score of 32/100. SBA loan charge-off rate of 4.5% across 22 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- HOODZ International, LLC
- Parent company
- BELFOR Franchise Group, LLC
- Incorporated in
- DE
- HQ
- 5405 Data Court, Ann Arbor, MI 48108
- Auditor
- BDO USA, P.C.
- Audited financials
- Franchisor revenue
- $29.5M
- vs $30.1M prior year
Independent franchisee associations
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
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.
- CEO
- Sheldon Yellen
- Headquarters
- MI
- Founded
- 2008
- FDD year
- 2026
- States available
- 34
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$59K
8.0% margin
Unlevered ROIC
24%
EBITDA / total invested capital
Payback
4.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $201K – $247K
- Below avg, review vs category
- Liquid capital req'd
- $10K – $30K
- Better than avg vs category
- Franchise fee
- $8K – $60K
- Near category avg vs category
- Royalty
- 10.0%
- Gross Sales · 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 | $60 |
| Transfer fee | $10K |
| Renewal fee | $6K |
| Total fee load | 11.0% of rev |
Financial Performance
- Avg gross sales
- $737K
- Per unit, per year
- Median gross sales
- $508K
- Item 19 type
- gross_sales
- Sample size
- 60 units
- vs category median 31
- Range (low → high)
- $193K→$2.6M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 204 Cleaning & Maintenance brands
vs Cleaning & Maintenance averages
How Hoodz Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 142
- Opened
- 5
- Last reporting year
- Closed
- 1
- Turnover rate
- 0.7%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (yr3)
- +3.1%
- Net unit change last year
- 3-yr CAGR
- +4.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 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.
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
- 4.5%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 88.9%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Hoodz's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 14 states
- Startup risk premium and job creation velocity
- 11-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
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.
Litigation (Item 3)
5 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · BDO USA, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 32 / 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
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Zip Codes |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1.5 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Michigan |
| Litigation count | 1 |
View Item 3 litigation summary
5 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 78 hrs
- On-the-job training
- 11 hrs
- Training location
- On-site and corporate
- 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
FDD download
HOODZ · FDD (2026) PDF
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. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is HOODZ's franchise failure rate?
Based on SBA 7(a) loan data, HOODZ has a charge-off rate of 4.5% across 22 loans, meaning 4.5% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many HOODZ franchise locations are there?
As of their most recent FDD filing, HOODZ has 142 total units in the United States, including 129 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 risk score of 32 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.