Hoodz Cleaning Franchise Cost, Profit, Failure Rate 2024

The American restaurant industry is expected to reach a market size of $1 trillion by 2030, driving the demand for HOODZ’s kitchen cleaning services.

With the heightened focus on hygiene following the pandemic, HOODZ’s services are in even higher demand.

If you’re considering starting a HOODZ cleaning franchise, it’s important to know the costs and requirements involved.

Let’s dive into everything you need to know about the HOODZ franchise opportunity.

Hoodz Cleaning Franchise
Hoodz Cleaning Franchise

About HOODZ Cleaning Franchise

As we’ve mentioned, HOOTZ is a company that provides cleaning services to restaurant kitchens.

The company is part of the BELFOR franchise group, the largest network of cleaning and restoration businesses in the US.

HOODZ is focused on providing the highest level of professionalism, reliability, and top-quality standards. 

From the entrepreneur’s point of view, HOODZ is an interesting project because the company is expanding a lot, and it is doing so through its franchise program. This is a great opportunity for franchisees.


History Of HOODZ Cleaning Franchise

HOODZ Franchise was launched in 2009 and grew to conquer the reputation of the best restaurant kitchen cleaning franchise in the country.

The company started franchising from day one, and this allowed it to grow exponentially in a very short time.

Today, there are more than 100 HOODZ Cleaning locations in the United States, and the company is very well-known.

This is why HOODZ is a great opportunity for new entrepreneurs: being able to exploit the HOODZ brand name, you can make greater deals and find clients more easily.


HOODZ Cleaning Franchise: Business Model

HOODZ Cleaning is a restaurant kitchen cleaning service provider, and it’s currently open to franchise applications. 

Company nameHOODZ Cleaning
Business ModelRestaurant kitchen service provider
Initial Investment$136,000 – $228,000
FranchiseYES
Franchise Fee$23,900 – $65,900
Royalty fee10%
Number of units135

How Much Does It Cost To Open A HOODZ Cleaning Franchise?

How Much Does It Cost To Open A HOODZ Cleaning Franchise

The initial investment required to open a new HOODZ Cleaning franchise is estimated to be between $136,000 and $228,000. 

The initial investment includes the cost of the franchise fee, which is between $23,900 and $65,900, and the expenses needed to set up the new business.

Other than the franchise fee, you’ll need to pay for a vehicle, equipment, supply, some marketing, and in some cases, you’ll need to hire some collaborators.

At the beginning of your collaboration with HOODZ, the franchise fee is the only fee you need to pay, but moving on, there is also an ongoing fee: it’s a 10% royalty fee that you’ll need to pay annually and forever (calculated on your profit).


HOODZ Cleaning Franchise Revenue & Profit

As per the HOODZ cleaning FDD, single territory operators of HOODZ cleaning franchise owners make $506,956 in average annual sales. And those in the top 25% of franchise owners make $1,022,660 in average sales.

If we assume a profit margin of 15% and take average revenue of $506,953, then we can calculate that a HOODZ Cleaning franchise owner make net profit of $76,043 on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%506956.00
Rent10.63%(53864.07)
Insurance5.31%(26932.04)
Salaries21.25%(107728.15)
Franchise Royalty Fees5.31%(26932.04)
Utilities2.13%(10772.82)
Cost of Goods Sold (COGS)26.56%(134660.19)
Labor (Variable)13.81%(70023.30)
Total (Expenses)85.00%(430912.60)
Net Profit15.00%76043.40

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


HOODZ Cleaning Franchise: Requirements

The HOODZ Cleaning Franchise requires a significant financial commitment from potential franchisees.

A minimum net worth of $200,000 and liquid capital of $100,000 is required to become a franchisee.

These requirements ensure that franchisees have the financial stability to invest in and run their franchise successfully.

Additionally, HOODZ may also look for other qualifications, such as prior business experience and a strong commitment to providing top-notch cleaning services.

Keep in mind that these requirements may change, and it is best to contact the HOODZ franchise directly for the most up-to-date information.


HOODZ Cleaning Franchise: Terms of Agreement and Renewal

HOODZ Cleaning Franchise Terms of Agreement and Renewal

The length of the franchise contract with HOODZ can be variable. This is why they don’t have a standard franchise fee (as you can see above, we’ve provided a range instead of a fixed price).

The less you pay for the franchise fee, the shorter the franchise contract.

However, choosing a shorter contract option to pay a smaller franchise isn’t always the best choice: at the end of the franchise contract, you are asked to pay a renewal fee. 

The amount of the HOODZ renewal fee is not public; you will have to read your contract carefully to know it.


HOODZ Cleaning Franchise: Training and Support

HOODZ Cleaning provides training for all their new franchisees.

The training provides technical knowledge about the cleaning processes, knowledge about the hygiene standards to comply with, and business and marketing knowledge.


HOODZ Cleaning Franchise: Obligations and Restrictions

HOODZ Cleaning isn’t very limiting when it comes to obligations.

As long as you comply with the company’s quality standards, you are left free to manage your business as you like. 


HOODZ Cleaning Franchise Failure Rate

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2020129128-1
20211281280
2022128128 0

For the Franchised outlets:

  • In 2020, the failure rate was (1)/129×100≈0.78%
  • In 2021, the failure rate was (0)/128×100≈0.00
  • In 2022, the failure rate was (0)/128×100≈0.00%

According to the above-mentioned data, we can see that the failure rate of HOODZ Cleaning was quite high, lying in the range between 0.78% and 0.00% for the years 2020-2022.


Payback Period Of HOODZ Cleaning Franchise

With a midpoint investment of $132,237 and an estimated 15% profit on the average net sales, the yearly profit would be $76,043.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Midpoint Investment / Yearly Profit = $132,237 / $76,043 = 1.7 years

Based on these figures, it will take approximately 2-3 years to recoup the initial investment for HOODZ Cleaning. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


HOODZ Cleaning Franchise: Financial Assistance

HOODZ Cleaning Franchise provides financial assistance to their franchisees: it is obtainable both in-house and through third parties, and it is mainly provided to cover the costs of the franchise fee.

Potential franchisees interested in cleaning can investigate opportunities with Buildingstars, 1-800-GOT-Junk FranchiseServiceMaster CleanCoverall Franchise, and Chem-Dry.


HOODZ Cleaning VS Comet Cleaners

Company NameHOODZ CleaningComet Cleaners
Founded In20091947
Started franchising20091967
Number of locations135147
Franchise Fee$23,900 – $65,900$15,000 – $50,000
Royalty Fee10%5%
Total initial investment$136,000 – $228,000$120,000

Conclusion

The HOODZ Cleaning franchise is one of the most well-known franchises in the country.

It is known as a franchise of success, and the company is constantly open to new franchise applications.

It is a great opportunity for all entrepreneurs who want to launch a new business.


HOODZ Cleaning Franchise: FAQs

Is HOODZ a franchise or chain?

HOODZ is a franchise. The company began franchising at the very beginning of its history in 2009.

Who is the owner of the HOODZ Cleaning Franchise?

HOODZ is a division of the BELFOR Franchise Group which is a multi-concept franchise system.

How many HOODZ franchise units are there?

There are 135 HOODZ franchise businesses active in the United States.

Is HOODZ Cleaning franchise a good investment?

It is a good investment because it is secure and profitable. There is a high market demand for this kind of service, and it is expected to grow even further. 

Is the HOODZ Cleaning Franchise worth it?

Starting a HOODZ franchise is a big investment, but it is 100% worth it because it’s profitable.

You can expect an annual gross sales of $700,000 (according to an estimate provided by the HOODZ company.

It means that you can expect to recover your investment in one year, which is faster than almost any other franchise available at the moment.

Who founded HOODZ Cleaning?

HOODZ Cleaning was founded in the year 2008 and started franchising in 2009.

Where is HOODZ Cleaning Headquartered?

The headquarters of HOODZ Cleaning is located in Ann Arbor, Michigan, United States.

Reference: Hoodz Franchise Costs & Fees (thefranchisemall.com)Hood Cleaning Franchise Owns a Lucrative Niche | HOODZ Franchise

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