Gotcha Covered Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$111,760 - $195,600
Franchise Fee
$62,910
Total US Locations
146
Business Summary
Gotcha Covered is a mobile business that sells and installs custom window treatments, including draperies, fabrics, drapery hardware, bedroom ensembles, blinds, and shades. Gotcha Covered businesses meet with customers in their homes or offices to provide product presentations, quotes, and complete orders. While installation services are offered, Gotcha Covered strongly recommends that franchisees use third-party contractors for this work. Franchisees typically operate their business from home, but have the option to rent a commercial office or retail space.
Corporate History
Gotcha Covered Franchising, LLC (GCF) was formed as a Colorado limited liability company on May 22, 2009, and began offering franchises for its Gotcha Covered businesses in the same month. GCF's predecessor was V2K Window Fashions, Inc., which franchised the V2K Window Décor & More system starting in 1997. From 2009 until the end of 2017, GCF supported the V2K system, and some V2K franchisees later converted to Gotcha Covered Franchises. V2K was dissolved in July 2021, with no remaining V2K franchises. As of July 21, 2021, GCF's parent company is FS PEP Holdco, LLC, an affiliate of Princeton Equity Group, LLC.
Financial Overview
Investment Range
$111,760 - $195,600
Franchise Fee (Low)
$62,910
Franchise Fee (High)
$69,900
Equipment Costs (High)
$600
Working Capital
$12,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
FS PEP Holdco, LLC and its subsidiaries (the parent company of Gotcha Covered Franchising, LLC) had an unqualified audit opinion for the years ended December 31, 2024 and 2023. However, the company reported a net loss of $12,250,006 in 2024 and $15,967,953 in 2023. The company has significant long-term debt, with $48,100,000 drawn on a financing arrangement as of December 31, 2024, maturing in September 2026. Management is responsible for evaluating if there are conditions raising substantial doubt about the company's ability to continue as a going concern, but the auditors did not include a going concern qualification in their report. The company also engaged in significant acquisition activity in 2024, including CMY Holdco, LLC and Five Star Bath, Inc., which impacted its financial position.
Financing Details
Gotcha Covered Franchising, LLC does not generally arrange any type of financing for its franchisees and does not guarantee franchisee notes, leases, or other obligations. However, in specific circumstances, Gotcha Covered Franchising, LLC may offer to partially finance the Initial Franchise Fee for approved franchisees. This financing would be handled through a promissory note and security agreement. Depending on the chosen term, these notes can bear interest at 8% per year for a three-year term, 9% per year for a four-year term, or 10% per year for a five-year term.
Performance Metrics
Total US Locations
146
Franchised Units
146
Corporate Units
0
Franchising Since
2009
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Gotcha Covered Franchising, LLC has no litigation history that is required to be disclosed in this document. This indicates that the franchise has not been involved in any material legal proceedings.
Bankruptcy History
Gotcha Covered Franchising, LLC has no bankruptcy proceedings that are required to be disclosed in this document, indicating a clear bankruptcy record.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise with Gotcha Covered Franchising, LLC, franchisees must meet several conditions. They need to provide written notice of their intent to renew between six and twelve months before their current agreement expires. The franchisee must not be in default of their franchise agreement and must have no outstanding amounts owed to Gotcha Covered Franchising, LLC or its affiliates. They must allow Gotcha Covered Franchising, LLC to inspect their business and records, and if required, make modifications and improvements to the franchise premises. Additionally, franchisees will need to sign a general release of claims (where permitted by state law), pay a successor fee, and sign Gotcha Covered Franchising, LLC's then-current franchise agreement. This new agreement may include terms and conditions that are different from the original agreement, potentially including higher royalty and marketing contributions.
Training & Support Program
Franchisor Assistance
Gotcha Covered Franchising, LLC provides various forms of assistance to its franchisees. Before opening, Gotcha Covered Franchising, LLC provides an initial training program, access to the Brand Standards Manual (including sales process and policy & procedures), designated Areas of Primary Responsibility, and a Franchise Starter Package (including laptop, product samples, and initial marketing materials). Once open, ongoing assistance includes continuous learning opportunities, continued access to the Brand Standards Manual and advice on operations, marketing materials, and website administration for promoting Gotcha Covered businesses. Optionally, Gotcha Covered Franchising, LLC may offer periodic business visits, maintain and administer a marketing fund, and hold national or regional conferences.
Initial Training Hours
100
Training Location
Virtual / Self-Paced / Our Headquarters, with in-person sessions in Denver, Colorado (or another designated location)
Ongoing Support
After opening, Gotcha Covered Franchising, LLC franchisees are required to participate in ongoing continuous learning opportunities to support business growth and development. This may include vendor-led onsite sessions, webinars, e-learning courses, and other resources. Franchisees and their managers must also attend regularly scheduled huddles, meetings, and conferences, which are provided at no additional cost and are aimed at business performance improvement. Additionally, franchisees are required to attend an annual conference for which a fee applies.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
Gotcha Covered Franchising, LLC franchisees receive an Area of Primary Responsibility that is defined by zip code(s) or other criteria, with a minimum of 30,000 households. The size of the territory can vary depending on factors like population density, growth trends, and geographical features. The population statistics used for defining these areas are based on current U.S. Census reports and other chosen sources. The boundaries may be described using contiguous zip codes, street boundaries, or county boundaries, or depicted on a map.