Gotcha Covered Franchise Costs, Fees & FDD

Year Business Began: 2001

Franchising Since: 2009

Headquarters: Greenwood Village, Colorado

Estimated Number of Units: 165

Franchise Description: The franchisor is Gotcha Covered Franchising, LLC. Gotcha Covered businesses sell and install window treatments, including draperies, fabrics, drapery hardware, bedroom ensembles, blinds, shades, and other related merchandise.
Training Overview: Franchisees (or the designated owner, if the franchisee is an entity) and the manager (if applicable) must complete the initial training program within 90 days after signing the Franchise Agreement and to the franchisor’s reasonable satisfaction. Prior to attending the initial training program, franchisees will complete the onboarding process, which typically takes 2-3 weeks and may vary depending on individual circumstances. The initial training program lasts for approximately six weeks, with a combination of virtual and in-person sessions. The program includes a mix of eLearning, webinars, and vendor-led training. The first four weeks of the initial training program will be completed virtually, and Week 5 will take place in-person in Denver, Colorado (or another location the franchisor designates). Week 6 will be a continuation of virtual learning, as needed, to reinforce key topics. The training may vary in length depending on the number of attendees and their prior experience. From time to time, the franchisor may also require that franchisees (or the designated owner if the franchisee is an entity), managers and other employees attend system-wide refresher or additional training courses. Some of these courses may be optional while others may be required.

Territory Granted: Franchisees will receive an area of primary responsibility with a minimum of 30,000 households. The area of primary responsibility must be agreed upon by the franchisee and the franchisor before the Franchise Agreement is signed and pay the initial franchise fee. This area of primary responsibility is defined in the Franchise Agreement and is not a location to be approved in the future. Franchisees will not be given a franchise if they and the franchisor cannot agree upon an area of primary responsibility. Franchisees are prohibited from “actively promoting” their GC business outside of their area of primary responsibility without prior written approval from the franchisor. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls.

Obligations and Restrictions: The franchise shall be managed by the franchisee, or if the franchisee is an entity, one shareholder, partner, or member who is a natural person designated in writing to the franchisor as the person to make all decisions for the franchisee entity (the designated owner). The franchisor may allow franchisees to appoint a manager to run the day-to-day operations of the franchise, if requirements are met. Franchisees must sell or offer for sale only those products and services authorized by the franchisor and which meet the franchisor’s standards and specifications. Franchisees must follow the franchisor’s policies, procedures, methods, and techniques.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing and they meet other requirements, they may renew for an additional 10-year term.

Financial Assistance: The franchisor does not arrange any type of financing from any source. The franchisor does not guarantee a franchisee’s note, lease, or other obligation. The franchisor currently offers honorably discharged United States veterans or their spouses a 10% discount on the initial franchise fee.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$62,910	$69,900
Franchise Starter Package	$21,500	$21,500
Annual Conference Registration Deposit	$1,000	$1,000
Launch Campaign (Marketing for Grand Opening)	$15,000	$30,000
Training	$250	$2,000
Equipment	$0	$600
Insurance	$1,000	$4,000
Miscellaneous Opening Costs	$100	$1,500
Additional Funds – 3 Months	$10,000	$15,000
ESTIMATED TOTAL	$111,760	$145,500

 
Other Fees

Type of Fee	Amount
Royalty	Franchisees will pay a monthly royalty amount (between $350 and $2,000) corresponding to how long they have been in operation plus $0.06 for each household of their territory in excess of 30,000.
Additional Area Fee	Then-current fee (currently $2.06 per additional household).
Marketing Fund Fee	Franchisees will pay a monthly marketing fund fee in an amount (between $125 and $1,000) corresponding to how long they have been in operation.
Local and Regional Marketing Cooperative	Established by cooperative members.
Minimum Territory Marketing	Franchisees must spend a minimum of 5% of their annual gross revenue on marketing for operations in their territory, in addition to their marketing fund fee. Included in such minimum spending will be the cost of online lead generation services and pay-per-click lead generation services by the franchisor’s approved or designated vendor(s).
Unauthorized Marketing Fee	$500 per occurrence.
Insurance	Franchisees must reimburse the franchisor’s costs plus a 20% administrative fee if the franchisee fails to obtain insurance and the franchisor obtains it for them.
Annual Conference Fee or Non-Attendance Fee	Then-current registration fee, currently $1,000.
Additional Training or Assistance Fees	Then-current fee (currently $250 per additional person for initial basic training and approximately $100 per attendee per day for additional training).
Technology Fee	Then-current fee (currently $100 per month).
Software Fees	$200 to $500 per month.
Digital Presence Fee	The then-current fee.
Annual Meeting Fee	The then-current fee.
Supplier and Product Evaluation Fee	Costs of inspection (estimated to be approximately $100 to $500).
Customer Issue Resolution	Reasonable costs the franchisor incurs for responding to a customer complaint.
Payment Service Fee	3% of total charge.
Late Payment Fee	$100 per occurrence, plus the lesser of the daily equivalent of 18% per year simple interest or the highest rate allowed by law.
Insufficient Funds Fee	$100 per occurrence.
Failure to Submit Required Financial Report Fine	$25 per occurrence and $25 per day.
Indemnification	Varies under circumstances.
Professional Fees and Expenses	Will vary under circumstances.
Successor Fee	10% of the then-current initial franchise fee.
Transfer Fee	$15,000. (Note, any sales commission owed as a result of the transfer shall remain the franchisee’s obligation, in addition to the transfer fee.)
Transferee Training Fee	Then-current fee (Currently: $1,000 for up to two people, including transferee (or its designated owner, if transferee is an entity) and its manager, if applicable, for basic training and advanced training; plus $250 per additional person for basic and advanced training and approximately $100 per attendee per day for additional training.)
Broker Fees	The franchisor’s actual cost of the brokerage commissions, finder’s fees, or similar charges.
Email Account Fee	The then-current fee; currently $336 per calendar year, per email account.

The above information has been compiled from the FDD of Gotcha Covered. Year of FDD: 2025.
Franchise Direct's Disclaimer