HOODZ Franchise Costs, Fees & FDD

Year Business Began: 2008

Franchising Since: 2009

Headquarters: Ann Arbor, Michigan

Estimated Number of Units: 135

Franchise Description: The franchisor is Hoodz International, LLC. The franchisor’s parent company is BELFOR Franchise Group, LLC. The franchise offered is for the establishment and operation of a business that offers, markets, promotes, advertises, manages and performs cleaning, inspection, maintenance, repairs, and restoration of commercial exhaust hood systems, conveyor ovens, kitchen equipment, facility premises, grease containment, grease filters, grease tanks, and air filters for establishments where food is prepared and/or served at retail, as well as other services authorized by the franchisor under its marks, utilizing the Hoodz business system.
Training Overview: The managing owner and, if applicable, designated manager, must successfully complete the jumpstart training program before attending business manager and technical operations training and before the opening of the franchised business. The jumpstart training program is a self-guided process, with additional guidance from the franchisor’s training team, along with the Hoodz system standards. Before franchisees begin operating the business and after they have completed the jumpstart training program, the franchisor will furnish business manager and technical operations training to the managing owner and, if applicable, the designated manager. The business manager and technical operations training will last up to 12 days in duration at the franchisor’s headquarters or another location designated by the franchisor. Upon the successful completion of business manager and technical operations training, there will be a transitional period of approximately 90 days, in which franchisees and or their service technician will have the opportunity to observe actual commercial exhaust hood and oven cleaning work for customer service locations located in their territory which have been previously serviced by an existing Hoodz franchisee or company store. The managing owner or, if applicable, the designated manager, must attend the convention when scheduled. The managing owner or, if applicable, the designated manager and/or service technician also must attend periodic refresher training courses and conferences, not to exceed one convention/conference per year, at the times and locations the franchisor determines, and for which it may charge fees.

Territory Granted: Within the territory, franchisees have the right to advertise and service any customer for services, except as described in the Franchise Agreement. Franchisees may not advertise to or service in any way, any customers or customer service locations outside the territory, without the franchisor’s prior written consent. The franchisee’s business office site, which may be in his or her home, must be located within the territory, and the franchisor must approve such office site. The office site must contain a minimum of 300 square feet and meet all applicable fire and safety codes for storage of materials and supplies used by the system. The territory that has been awarded to franchisees is where the franchisor will not allow another Hoodz franchisee or company store to advertise in print or media, primarily directed to persons in their territory.

Obligations and Restrictions: Franchisees must designate one managing owner, who is either an individual franchisee or a person with an ownership interest in a corporation or limited liability company franchisee, who will have day-to-day responsibility and authority to run the franchised business, and who will be the franchisor’s primary individual contact with the franchised business, and who the franchisor approves in its sole discretion. Franchisees must offer and provide all of the services that the franchisor periodically requires for Hoodz businesses in the manner it prescribes. Franchisees may not market or perform any services that the franchisor has not authorized, without its express prior written approval. Following the first full year of operation, Hoodz businesses with a standard territory must maintain a minimum level of monthly gross sales.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One additional, consecutive term of 10 years each is available, if requirements are met.

Financial Assistance: The franchisor may offer franchisees financing for a portion of the initial franchise fee for a standard territory, if they meet its qualifications. The franchisor will provide certain information and assist in facilitating SBA loans including 7(a) and 504 loans. The franchisor will also suggest certain third party sources for lending. The franchisor also offers discounts on the initial franchise fee to qualified veterans of the U.S. Armed Forces and first responders. Other than described, the franchisor will not guarantee any notes, leases or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$59,900	$59,900
Initial Package Fee	$23,300	$23,300
Food and Lodging While Training, Not Including the Cost of Transportation	$1,800	$2,500
Vehicle with Upfitting	$94,000	$99,000
Full Time Service Technician for 3 Months	$7,010	$13,219
Business Telephone Fee	$0	$150
Mobile Phone or Tablet (monthly)	$120	$360
High Speed Internet, Anti-Virus Software and Electronic Mail	$267	$477
Computer System	$0	$2,875
Uniform Cleaning/Delivery	$0	$540
Insurance for the First 3 Months	$2,300	$4,750
Global Positioning System/Data Communications Services Fee	$60	$111
International Kitchen Exhaust Cleaners Association (IKECA) Annual Membership Fee	$0	$1,245
International Kitchen Exhaust Cleaners Association (IKECA) Certification Fee	$0	$395
Rent – 3 Months	$0	$2,400
Leasehold Improvements	$0	$1,200
Security Deposits/Utility Deposits	$0	$950
Accounting Software Fees (monthly)	$81	$135
Licenses and Permits	$0	$600
Additional Funds for the First 3 Months	$10,000	$30,000
ESTIMATED TOTAL & ADDITIONAL EXPENSES (for standard territory)	$199,038	$244,307

 
Other Fees

Type of Fee	Amount
Royalty	- 10% of gross sales of up to $999,999.99 for each calendar year - 9% of gross sales exceeding $1,000,000.00 in any given calendar year - 8% of gross sales exceeding $2,000,000.00 in any given calendar year - 7% of gross sales exceeding $3,000,000.00 in any given calendar year
Technology, Licensing and Upgrade Fee	The then current fee, which is presently $60 per week.
Conventions, Regional Meetings and/or Additional Training	The then current fee, which varies depending on the event, but not to exceed $1,000 max per person per event.
Transfer of Corporation Fee	$500
Transfer Fee	The then current fee, per territory; presently, this is $9,900 if transferred to a new franchisee, or $3,000 if transferred to a current franchisee.
Transfer Fee – Broker Fee	If franchisees authorize the franchisor to enlist a third party broker to locate the transferee, there will also be a broker fee, which currently is approximately $30,000.
Brand Marketing Fund	Up to 1% of gross sales, when established.
Outstanding Royalties, Support Fees, and Other Fees of Transferor	Will vary under circumstances.
Renewal Fee	10% of the then current initial franchise fee.
Late Report Fee	$20 per week that a report is late.
Late Payment Fee	5% of amount due or $50 per week, whichever is greater.
Administrative Fee	The then current fee, which is presently $500 per transaction.
Collection Fee	The then current fee, which is presently up to 35% of gross amounts collected on the franchisee’s behalf.
Non-Sufficient Funds (NSF) Fee	The then current fee, which is presently $50 per NSF.
Convention Non-Attendance Fee	The then current fee, which is presently $1,000.
Audit	Cost of inspection or audit estimated at $2,500-$3,000, plus 100% of understated royalty and interest, at the rate of 18% per annum or the maximum rate permitted by applicable law, whichever is less, and all late fees, from the date originally due until the date of payment; if an understatement of royalty is greater than 3%, franchisees also must pay the franchisor an additional penalty fee equal to 10% of the total amount of the understated gross sales.
Interest	Lesser of 18% per annum or the maximum permitted by law, whichever is less.
Insurance	Cost of insurance; if franchisees fail to maintain insurance as required, then the franchisor has the right to procure insurance on their behalf and franchisees must pay the franchisor on demand the costs and premiums the franchisor incurs.
Indemnification	Will vary under circumstances.
Non-Compliance Fee	Greater of $500 or cost of job, in the franchisor’s discretion, for each incident of out-of-territory conduct, or $5,000 per instance for other non-compliant acts or omissions.
Costs and Attorneys’ Fees	Will vary under circumstances.
National or Regional Accounts Fee (“NORA Fee”)	None currently assessed.

The above information has been compiled from the FDD of Hoodz. Year of FDD: 2025.
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