Groovy Hues Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$167,021 - $206,393
Franchise Fee
$30,000
Min Cash Required
$20,000
Total US Locations
10
Business Summary
Groovy Hues Peace Love Paint Powerwash offers commercial and residential painting services, with optional powerwashing and gutter services, to customers. Groovy Hues Peace Love Paint Powerwash businesses operate using a proprietary system that includes methods for property assessment, product and service installation, customized software, and general procedures for operating and managing the business, such as scheduling, estimating, production, and sales. Franchisees operate their Groovy Hues Peace Love Paint Powerwash business from an approved facility, which can be a home office or a leased commercial property.
Corporate History
HPB Painting LLC, operating as Groovy Hues Peace Love Paint Powerwash, was organized in Pennsylvania on October 1, 2021. The company began offering franchises in August 2022. Its parent company is JEZ Investments LLC, formed in May 2020. Groovy Hues Peace Love Paint Powerwash acquired certain assets and confidential information from MR LFG LLC, d/b/a Rathgeb Painting, in January 2024, which had been operating a commercial and residential painting business since December 2021. The Rathgeb Painting business began converting to the Groovy Hues brand in February 2024.
Financial Overview
Investment Range
$167,021 - $206,393
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$59,500
Minimum Cash Required
$20,000
Royalty %
8.5%
Equipment Costs (Low)
$33,518
Equipment Costs (High)
$44,291
Working Capital
$25,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Groovy Hues Peace Love Paint Powerwash has a limited operating history and reported a net loss of $1,530,847 in 2023, resulting in a member's deficit of $417,471. In 2022, the company also experienced a net loss of $859,089. Despite these losses, the independent auditors did not identify conditions or events that raise substantial doubt about the company's ability to continue as a going concern. Management believes that the disposition of current claims and lawsuits will not have a material adverse effect on the company's financial position, results of operations, and cash flows.
Financing Details
Groovy Hues Peace Love Paint Powerwash does not offer direct financing for the initial franchise fee for a franchisee's first territory. However, it may offer financing for a portion of the initial franchise fee for subsequent territories. For a second territory, up to 60% of the initial franchise fee (up to $24,000) may be financed. For a third territory, up to 80% of the initial franchise fee (up to $28,000) may be financed, with a maximum total financed amount of $52,000. These loans are for up to 36 months, carry an interest rate of the U.S. Prime Rate plus 2%, and have no prepayment penalty. Franchisees must sign a Secured Promissory Note and General Security Agreement, which grants Groovy Hues Peace Love Paint Powerwash a security interest in substantially all of the franchisee's assets. All owners of the franchisee entity must personally guarantee the obligations.
Performance Metrics
Total US Locations
10
Franchised Units
10
Corporate Units
0
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Groovy Hues Peace Love Paint Powerwash has been involved in two litigation cases in the past year, both of which have since been dismissed. In one case, Waldron, et al. v. SVHB Marketing LLC, et al., a group of current and former franchisees of an affiliate, Blingle!, filed a complaint in August 2023 against an affiliate of Groovy Hues Peace Love Paint Powerwash, its parent company, and several individuals, alleging fraudulent inducement, fraud, negligent misrepresentation, negligence, breach of contract, unjust enrichment, state statute violations, and other claims. Groovy Hues Peace Love Paint Powerwash itself was not named as a defendant in this case. This case was dismissed in March 2024 due to the plaintiffs' failure to comply with a mediation pre-condition. The second case, HPB Lighting LLC v. Calm Family LLC, Ankit Bishnoi, and Courtney Bishnoi, was filed in November 2023 by an affiliate against former Blingle! franchisees for breach of contract and abandonment. The franchisees filed counterclaims similar to those in the Waldron case. This case was consolidated with the Waldron case and dismissed in April 2024.
Bankruptcy History
Groovy Hues Peace Love Paint Powerwash has no bankruptcy history to report for itself or its executive officers.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Groovy Hues Peace Love Paint Powerwash franchisees must provide written notice of their intent to renew between 12 and 18 months before the current term expires. They must demonstrate their right to operate the business at the approved location for the renewal term or secure an approved substitute location. Franchisees must also complete any necessary updates to bring their business into full compliance with current system standards and specifications within 90 days before expiration, including equipment, vehicles, and the approved location. All monetary obligations to Groovy Hues Peace Love Paint Powerwash, its affiliates, and suppliers must be satisfied, and the franchisee must have substantially complied with all agreements throughout the existing term. Additionally, franchisees are required to meet current training requirements, execute a general release in favor of Groovy Hues Peace Love Paint Powerwash and its affiliates, and pay a renewal fee equal to 20% of the initial franchise fee. They will also need to sign the then-current form of franchise agreement, which may have materially different terms.
Training & Support Program
Franchisor Assistance
Before opening, Groovy Hues Peace Love Paint Powerwash assists franchisees by defining their protected territory, providing an opening package, a list of approved suppliers and products, and access to its confidential Operations Manual and Intranet System. It also offers an Initial Training Program for the franchisee and up to two additional representatives, provides advice and guidance for the startup phase, dedicated phone numbers and email accounts, and brand optimization coordination. After opening, Groovy Hues Peace Love Paint Powerwash may provide additional or remedial training, on-site training or consultation (for a fee), modify and update the System and Operations Manual, and provide updated lists of approved products and suppliers. It also operates a Call Center to manage customer inquiries, may establish a Brand Fund for advertising, reviews alternate supplier and product proposals, conducts periodic inspections and audits, and offers ongoing advice and guidance via various communication methods, potentially with a fee for on-site assistance.
Training Location
Corporate headquarters in Omaha, NE
Ongoing Support
After opening, Groovy Hues Peace Love Paint Powerwash offers various ongoing support services. This includes additional or remedial training courses for the franchisee and their personnel, which may be mandatory or discretionary, and for which a fee may be charged. On-site training or consultation can be provided upon request or as deemed necessary, subject to personnel availability and a daily fee plus expenses. Groovy Hues Peace Love Paint Powerwash continuously modifies and updates its System and Operations Manual, providing updated lists of approved products and suppliers. It operates a Call Center for customer inquiries and work order assignment. The franchisor may also establish a Brand Fund for system-wide advertising and marketing. Periodic advice and guidance are offered regarding business operations, Proprietary Marks, and the System, delivered through meetings, printed materials, email, telephone, or electronically. Franchisees are required to attend an annual conference, for which a fee applies.
Franchise Requirements
Ideal Candidate Profile
Groovy Hues Peace Love Paint Powerwash seeks qualified individuals who are entrepreneurial and possess strong managerial abilities, with a focus on customer service. Candidates do not need prior experience in painting, powerwashing, or gutter services. Franchisees or their operating principals must dedicate their personal full-time attention and best efforts to managing and operating the business. While a Designated Manager can handle day-to-day operations if approved and properly trained, the owner's active involvement in management and promotion is crucial. Ideal candidates should possess good moral character, business reputation, credit rating, and adequate financial resources to meet their obligations. They should also demonstrate an aptitude and ability to conduct the business successfully.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
Groovy Hues Peace Love Paint Powerwash typically grants a single protected territory defined by a population of approximately 200,000 individuals, though the size can vary based on geography, demographics, and other factors. If the cumulative general population of a franchisee's protected territory exceeds the standard figures, an overage fee of $0.30 per individual is charged. For multi-unit franchisees purchasing two or more businesses, separate protected territories are granted, which are generally contiguous. Although the territory is protected from other Groovy Hues businesses, the franchisor retains rights to solicit and service national and regional accounts (NORAs) within or outside the territory, and may also distribute products and services through alternative channels like the internet.
Staffing Notes
Groovy Hues Peace Love Paint Powerwash franchisees are responsible for maintaining a team of qualified employees or a network of reputable subcontractors to perform services. The business must always have at least one individual who has successfully completed the initial training program on staff, which may be the franchisee or a Designated Manager. If a Designated Manager is employed, they must be approved by Groovy Hues Peace Love Paint Powerwash and complete the initial training program before assuming responsibilities, and any replacement Designated Manager must be trained within 30 days of hiring. The Operations Manual provides job descriptions for various roles including General Manager, Human Resources Coordinator, Client Relations Manager, Foreman, Sales Representative, Bookkeeper/AR Specialist, and Power Washer, along with guidelines for recruiting, interviewing, and training employees, and maintaining uniform/dress code standards.