2026 FDD Issued Mar 30, 2026, amended Sep 11, 2026 Minnesota Commerce (CARDS) Checked Nov 2, 2026
HOODZ Franchise Cost (2026)
A HOODZ franchise costs an estimated $200,538 – $246,807 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $59,900 initial franchise fee (Item 5) and covers this format: Standard HOODZ Territory. Item 6 lists royalty: 10% of Gross Sales, subject to the conditions below.
- Total investment
- $201K – $247KItem 7 source and qualifications
- Franchise fee
- $59.9KItem 5 source and terms
- Royalty
- 10% of Gross SalesItem 6 conditions and fee bases apply
- Brand fund
- See Item 6Item 6 conditions and fee bases apply
- Units (2025)
- 142Item 20 source and scope
- Franchise exit rate
- 0.8% / yrCalculated 3-year average; definition and source
What stands out about HOODZ
The royalty falls as a business grows, but only for large operators. Item 6 charges its top rate of 10% of Gross Sales until annual sales pass the first threshold and steps the rate down at each higher threshold, while a business that misses minimum monthly sales for a sustained period pays a fixed weekly royalty instead. Most single-territory operators in Item 19 sold well below the first threshold, so the top rate is the one most owners pay.
Item 19 separates multi-territory owners from single-territory ones, and the gap is wide. Multi-territory operators averaged $1,647,770, pulled up by one very large business, while single-territory operators averaged far less, and in both groups most operators sold less than their group's average. The investment estimate in Item 7 is for one territory, so the single-territory table is the closer comparison for a new owner.
The service vehicle is the largest cost outside the franchisor's own fees. Item 7 puts the upfitted truck near the top of the $200,538 – $246,807 estimate, while the business can be run without leased space. The term is 5 years, but the first renewal carries no renewal fee and two renewals are available.
What are the initial franchise fees and financial requirements for HOODZ?
Item 5 lists an initial franchise fee of $59,900 for HOODZ. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5 (PDF pages 16-20): the Initial Franchise Fee for a Standard Territory (1,600 to 2,000 Retail Food Service Customers) is $59,900, plus $30 for each customer over 2,000 up to 3,000; an Express Territory (750 to 1,000) is $29,900. A $23,000 Initial Package Fee plus sales tax is also due at signing. Discounts include 20% for qualifying veterans, $2,500 for first responders, $10,000 off each additional Standard territory bought at the outset, 25% to 60% for qualifying conversion businesses and 25% for franchisees of affiliated brands; existing franchisees pay $49,900 for another Standard territory. Qualified buyers may finance part of the fee (Item 10). Fees are non-refundable.
Source: HOODZ 2026 FDD, Item 5, PDF p. 16.
This record lists no minimum net worth or liquid-capital requirement for HOODZ, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a HOODZ franchise? (Item 7)
Source: HOODZ 2026 FDD, Item 7, PDF p. 27.
Item 7 of HOODZ’s 2026 Franchise Disclosure Document estimates the total cost to open one standard hoodz territory at $200,538 – $246,807. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial Franchise Fee | $59,900 | $59,900 |
| Initial Package Fee | $23,000 | $23,000 |
| Food and Lodging While Training (excluding transportation) | $1,800 | $2,500 |
| Vehicle with Up-fitting | $94,000 | $99,000 |
| Full-time Service Technician for 3 Months | $7,010 | $13,219 |
| Business Telephone Fee | $0 | $150 |
| Mobile Phone or Tablet | $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 |
| IKECA Annual Membership Fee | $0 | $1,245 |
| 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 | $81 | $135 |
| Licenses and Permits | $0 | $600 |
| Small Tools and Equipment | $2,000 | $3,000 |
| Additional Funds for the First 3 Months | $10,000 | $30,000 |
| Total | $200,538 | $246,807 |
Other formats
| Format | Total investment |
|---|---|
| Express HOODZ Territory | $170,538 – $216,807 |
For comparison, the median high-end investment among 5 cleaning records without a source-review hold is $203,950.
Item 7 Table A (PDF pages 27-29) and the cover print $200,538 to $246,807 for a Standard Territory; its 21 lines add to that total. The upfitted service vehicle is the largest line after the fees paid to the franchisor ($82,900 including the Initial Package). Table B prints $170,538 to $216,807 for an Express Territory.
What ongoing royalties and fees does HOODZ charge? (Item 6)
Source: HOODZ 2026 FDD, Item 6, PDF p. 20.
Item 6 of HOODZ’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty | 10% of Gross Sales | Every period | 10% of Gross Sales up to $999,999.99 in a calendar year; once sales reach $1, $2 or $3 million in a year the rate falls to 9%, 8% or 7% for the rest of that year and the next. Paid weekly by automatic debit. If minimum monthly sales are missed for three consecutive months, a fixed weekly royalty based on 10% of the minimum applies (notes 1-2). (Item 6, PDF p. 20) |
| Technology Fee | $60 per week | Every period | Currently $60 per week for the HOODZ Software; increases follow vendor costs plus up to a 15% administration fee. (Item 6, PDF p. 21) |
| Conventions, Regional Meetings and/or Additional Training | Varies | When it applies | Up to $1,000 per person per event, plus travel; may rise up to 10% a year. (Item 6, PDF p. 21) |
| Transfer of Corporation Fee | $500 | When it applies | $500 to change the entity that owns the franchise, after one initial pre-opening transfer. (Item 6, PDF p. 21) |
| Transfer Fee | $9,900 | When it applies | Currently $9,900 per territory for a transfer to a new franchisee, or $3,000 to a current franchisee; may rise up to 10% a year. (Item 6, PDF p. 21) |
| Transfer Fee – Broker Fee | Varies | When it applies | If you authorize the franchisor to use a third-party broker who finds the buyer, the greater of 10% of the sale price or $30,000. (Item 6, PDF p. 21) |
| Brand Marketing Fund | Varies | When it applies | Up to 1% of Gross Sales weekly when established; not yet established (note 5). (Item 6, PDF p. 22) |
| Outstanding Royalties, Support Fees, and Other Fees of Transferor | Varies | When it applies | In a transfer, the buyer must pay any royalties and other fees the seller has not paid, plus interest and broker fees. (Item 6, PDF p. 22) |
| Renewal Fee | Varies | When it applies | 10% of the then-current Initial Franchise Fee for the second and later renewals; none for the first renewal. (Item 6, PDF p. 22) |
| Late Report Fee | $20 per week | When it applies | $20 for each week a report is late; may rise up to 10% a year. (Item 6, PDF p. 23) |
| Late Payment Fee | Varies | When it applies | The greater of 5% of the amount due or $50 per week for each late payment. (Item 6, PDF p. 23) |
| Administrative Fee | $500 | When it applies | Currently $500 per transaction for amendments, consents or other services without a specific fee. (Item 6, PDF p. 23) |
| Collection Fee | Varies | When it applies | Up to 35% of amounts the franchisor collects for you from customers 90 or more days delinquent. (Item 6, PDF p. 23) |
| Non-Sufficient Funds (NSF) Fee | $50 | When it applies | Currently $50 per returned debit. (Item 6, PDF p. 23) |
| Convention Non-Attendance Fee | $1,000 | When it applies | $1,000 if you miss the Convention without permission, more if venue costs rise (note 8). (Item 6, PDF p. 23) |
| Audit | Varies | When it applies | Audit costs estimated at $2,500 to $6,000, plus royalty and interest on understated sales; an understatement over 3% adds a penalty of 10% of the understated amount. (Item 6, PDF p. 24) |
| Interest | Varies | When it applies | The lesser of 18% per year or the legal maximum on overdue amounts. (Item 6, PDF p. 24) |
| Insurance | Varies | When it applies | Required insurance; if you fail to maintain it, the franchisor's costs and premiums. (Item 6, PDF p. 24) |
| Indemnification | Varies | When it applies | Claims arising from your business's operation. (Item 6, PDF p. 24) |
| Non-Compliance Fee | Varies | When it applies | The greater of $500 or the invoice total for each job outside your territory without consent, or up to $5,000 per instance for other non-compliance (note 6). (Item 6, PDF p. 24) |
| Costs and Attorneys' Fees | Varies | When it applies | Enforcement costs on your default, or defense costs if your claim fails (note 7). (Item 6, PDF p. 25) |
| NORA Fee | Varies | When it applies | Not currently charged; up to 5% of Gross Sales from national or regional accounts the franchisor manages (note 9). (Item 6, PDF p. 25) |
| Testing, New Product or New Supplier Approval | Varies | When it applies | $500 plus costs, refunded if the item is approved for the whole system. (Item 6, PDF p. 25) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
HOODZ startup investment and modeled fees over 10 years
Item 6 sets a tiered royalty (10% of Gross Sales up to $1 million in a calendar year, then 9%, 8% and 7% above $1, $2 and $3 million, with qualification carrying into the next year) and requires a fixed weekly royalty when minimum monthly sales are missed. A single annual sales figure cannot reproduce those rules, so this record does not produce an annual fee estimate or payback preset. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: HOODZ franchised outlet history
Source: HOODZ 2026 FDD, Item 20, PDF p. 82.
Item 20 Table 3 reports 135 franchised outlets at the end of 2025. The company-owned table reports a further 7 outlets. Our calculated average annual franchised exit rate is 0.8% across the 3 reported years, using the definition below.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 128 | 1 | 0 | 129 | 0% |
| 2024 | 129 | 4 | 2 | 131 | 1.6% |
| 2025 | 131 | 5 | 1 | 135 | 0.8% |
Franchised units went from 128 to 135 over 3 years (+7).
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables. Compare HOODZ’s exit rate with other brands.
1 units changed owners in 2025.
Item 20 Table 3 totals are on PDF page 82 and match Table 1. Table 3 includes franchisees in Canada operating under an affiliated franchisor with the same system. Exits were limited to a few terminations, with no closures listed.
How much do HOODZ franchise owners make? (Item 19)
Source: HOODZ 2026 FDD, Item 19, PDF p. 73.
Item 19 of the 2026 FDD reports average Annual Gross Sales, Multi-Territory Operators of $1,647,770 (2025 calendar year, 27 franchised operators running more than one territory, open all of 2025; 9 (33%) exceeded the average). HOODZ’s Item 19 reports sales but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees such as the royalty (10% of Gross Sales) come out of sales before an owner is paid, so these figures cannot show what an owner earns.
See every HOODZ Item 19 figure, with its period and sample.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How long is the HOODZ franchise agreement term?
Source: HOODZ 2026 FDD, Item 17, PDF p. 67.
The standard HOODZ franchise agreement runs 5 years, with renewal terms of 5 years.
Item 17 (PDF page 67): a 5-year term with 2 additional consecutive 5-year terms if you meet the renewal conditions. The first renewal carries no renewal fee; later renewals cost 10% of the then-current Initial Franchise Fee.
How long does it take to open a HOODZ franchise? (Item 11)
Source: HOODZ 2026 FDD, Item 11, PDF p. 46.
Item 11 of the 2026 FDD states the time from signing the Franchise Agreement and paying for the business to opening: between 90 and 120 days. The agreement requires you to open within four months of signing the Franchise Agreement or within two months of completing training.
Franchises with a similar investment range
These published records are selected by proximity to HOODZ’s $200,538 low-end Item 7 investment, starting with Cleaning. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
- Zerorez $219K – $411K Source review pending Provisional publication Cleaning
- Sharkey's Cuts for Kids $200K – $341K Source review pending Provisional publication Children’s Services
- Cinnabon $196K – $715K Source review pending Provisional publication Restaurants & Food
- College Hunks Hauling Junk & Moving $193K – $346K Home Services
- Valvoline Instant Oil Change $192K – $3.48M Source review pending Automotive
- Huntington Learning Center $192K – $341K Education & Tutoring
Compare other cleaning franchises
Sources
HOODZ Franchise Disclosure Document, issued March 30, 2026, as amended September 11, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 16
- Item 6: cited PDF p. 20
- Item 7: cited PDF p. 27
- Item 19: cited PDF p. 72
- Item 20: cited PDF p. 82
- Agreement term (Item 17): cited PDF p. 67
Page references for HOODZ use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- November 2, 2026: Source check completed against the recorded FDD.
- November 2, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued March 30, 2026).
- November 2, 2026: Independently checked against the March 30, 2026 Minnesota Clean FDD, as amended September 11, 2026: cover, Items 5, 6, 7, 11, 17, 19 and 20. Recorded the amendment date. Item 6 now lists all 23 rows (the draft had 5), corrects the tiered royalty and suppresses the annual fee model. Item 19 now names its multi-territory figure as the broadest sample and excludes an internally inconsistent Express table. Added the opening time and deadline and Item 7 and Item 20 notes. Rewrote the analysis.
- September 11, 2026: Amendment date recorded for the source FDD.