Hood Guyz Franchise Costs & Fees
Date of Incorporation: 2015
Franchising Since: 2015
Headquarters: Pembroke Pines, Florida
Business Description: The franchisor is Tri Way Cleaning Services, Inc. d/b/a “Hood Guyz.” The Hood Guyz franchise conducts commercial kitchen exhaust system cleaning, inspection, maintenance and restoration services.
Franchise Offer: The franchise offered is for the operation of a commercial kitchen exhaust system cleaning, inspection, maintenance and restoration business under the name Hood Guyz.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee franchisees’ note, lease or obligation.
Training and Assistance: Franchisees (or, if the franchisee is an entity, a principal of franchisee) and up to 2 management personnel of theirs shall attend and complete to the franchisor’s satisfaction the management training program offered by the franchisor at its company headquarters in the Pembroke Pines, Florida area on the operation of a Hood Guyz Business. After the opening of the Hood Guyz Business, the franchisor will provide training to any new manager of the Hood Guyz Business. In addition, the franchisor has the right to require that franchisees (or their managing principals) and any employees additional or refresher training programs, to be furnished at the franchisor’s National Headquarters in the Pembroke Pines, Florida area. After the opening of the Hood Guyz Business, the franchisor may conduct an annual convention at such place as shall be designated by the franchisor.
Territory: Franchisees must operate your Business within the geographical area described in the Franchise Agreement. Franchisees may operate from their home or any location in the Authorized Territory, which such location is not subject to the franchisor’s approval. Typically, the Authorized Territory will be based on a total count of 1,600 – 2,000 Retail Food Service Operations. If franchisees request a larger Territory, the franchisor may grant a larger Territory, at its discretion, upon the payment of an extra fee of $4,500, for an additional 225 (approximately) Retail Food Service Customers, for a total initial franchise fee of $20,000
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One 10-year renewal term is available, if certain requirements are met.
Obligations and Restrictions: The Franchise Agreement provides that the Hood Guyz Business must at all times be under the franchisee’s direct, day-to-day, full time supervision (or if the franchisee is an entity, then a managing owner of the entity, approved by the franchisor) or the manager of the Hood Guyz Business who is approved by the franchisor. This person must have successfully completed the training program to the franchisor’s satisfaction. Franchisees (or the approved manager or managing owner, if the franchisee is an entity) must devote his or her direct, day-to-day, full-time attention and best efforts in the operation of the Hood Guyz Business, and may not own, operate, manage, work at or engage in any other business during the term of the Franchise Agreement. Franchisees may not offer for sale any products or services not specifically approved by the franchisor in writing and franchisees may not use Hood Guyz vehicles, equipment or premises for any other purpose than the operation of the Hood Guyz Business and the sale of products and services approved by the franchisor.
Estimated Number of Units: Less than 10
|Name of Fee||Low||High|
|Initial Franchise Fee||$15,500||$20,000|
|Truck - new||$1,800||$2,325|
|Initial Marketing Materials||$100||$200|
|Additional Funds (first 3 months)||$15,000||$20,000|
|Type of Fee||Amount|
|Royalty Fee||10% of total Gross Sales of the Business.|
|Interest||Lesser of 18% per year or maximum lawful rate.|
|National Advertising Fee||Currently $0 per week. Up to 3% of total Gross Sales of the Business.|
|Initial Direct Mail Local Marketing Expense||Currently $.703 per restaurant in the territory. Estimated cost of $1,124.80 per 1,600 restaurant territory.|
|Uncollected Account Chargeback||Amount of uncollected account along with any service charges incurred such as credit card fees and bank fees.|
|Voluntary Sales Support Program||No charge at this time, but we reserve the right to charge $90 per week for this program.|
|Hood Guyz Technology Licensing Fee||$50 per month per user. The franchisor reserves the right to increase cost to offset any increased cost incurred by the franchisor.|
|Additional Training Fees||A reasonable fee which the franchisor determines at the time of additional training.|
|Convention Fee||No charge at this time, but the franchisor reserves the right to charge at a later time ($250 to $500 per day).|
|Advertising Material Fees||A reasonable cost to be set based upon the material requested or provided.|
|Alternative Supplier Fee||The franchisor’s actual costs to evaluate the alternative supplier.|
|Insurance Procurement Fee||The franchisor’s cost to acquire insurance plus 20% of insurance premium payments.|
|Audit Expenses||Cost of audit plus interest at 1.5% per month.|
|Costs and Attorney’s Fees||Will vary under circumstances.|
|Indemnification||Will vary under circumstances.|
|Training Resources Fee||A reasonable fee which the franchisor determines at the time of furnishing training resources.|
|Transfer Fee||25% of the then-current initial franchise fee per unit.|
|Expenses on Death or Disability||Actual expenses the franchisor incurs.|
The above information has been taken from the FDD of Hood Guyz. Year of FDD: 2016
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