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.
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 name||HOODZ Cleaning|
|Business Model||Restaurant kitchen service provider|
|Initial Investment||$136,000 – $228,000|
|Franchise Fee||$23,900 – $65,900|
|Number of units||135|
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.
|QUARTILE||SINGLE-TERRITORY OPERATORS IN GROUP||AVERAGE ANNUAL GROSS SALES||HIGHEST ANNUAL GROSS SALES WITHIN QUARTILE||LOWEST ANNUAL GROSS SALES WITHIN QUARTILE||THOSE THAT EXCEEDED THE AVERAGE||MEDIAN ANNUAL GROSS SALES|
|Top 25%||10||$1,022,660||$1,574,641||$647,299||4 (40%)||$1,001,412|
|Top 50%||20||$753,699||$1,574,641||$422,178||8 (40%)||$643,720|
|Top 75%||29||$621,670||$1,574,641||$244,580||11 (38%)||$474,401|
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
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
|Year||Outlets at the Start of the Year||Outlets at the End of the Year||Net Change|
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 10% profit on the average net sales, the yearly profit would be $50,695.
So, to find out how long it will take to earn back the initial investment:
Payback Period = Midpoint Investment / Yearly Profit = $132,237 / $50,695 = 2.6 years
Based on these figures, it will take approximately 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.
HOODZ Cleaning VS Comet Cleaners
|Company Name||HOODZ Cleaning||Comet Cleaners|
|Number of locations||135||147|
|Franchise Fee||$23,900 – $65,900||$15,000 – $50,000|
|Total initial investment||$136,000 – $228,000||$120,000|
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.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.