How Much Does a Gotcha Covered Franchise Cost?
Data from the 2026 Franchise Disclosure Document
Investment Summary
Total Investment
$123K – $217K
Franchise Fee
$70K
Royalty
Fixed monthly fee from $350 to $2,250 depending on months in operation
Ad Fund
Fixed monthly fee from $125 to $1,000 depending on months in operation
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Gotcha Covered is $70K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Gotcha Covered franchise requires a total investment of $123K – $217K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $20K to $35K.
Ongoing Costs
Beyond the initial investment, Gotcha Covered franchisees pay ongoing fees. The royalty structure is: Fixed monthly fee from $350 to $2,250 depending on months in operation. The ad fund contribution is: Fixed monthly fee from $125 to $1,000 depending on months in operation. There is also a technology fee of $476.
Net Worth & Liquid Capital Requirements
Gotcha Covered requires working capital of $20K – $35K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to Gotcha Covered's Item 19 financial performance representation:
Median gross sales: $392K
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View Gotcha Covered?
SBA Loans Issued
55
Default Rate
31.8%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Gotcha Covered has 55 SBA-backed loans on record. The default rate is 31.8%, which is above the franchise industry average, suggesting higher lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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