Hoodz Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$39,988 - $244,307
Franchise Fee
$23,920
Total US Locations
136
Business Summary
HOODZ International, LLC offers franchises for establishing and operating a business that provides cleaning, inspection, maintenance, repairs, installation, and restoration services for commercial exhaust hood systems, conveyor ovens, kitchen equipment, facility premises, grease containment, grease filters, grease traps, and filter exchange. These services are primarily for establishments where food is prepared and/or served at retail, utilizing the HOODZ business system.
Corporate History
HOODZ International, LLC was formed on October 3, 2008, as a Delaware Limited Liability Company and began offering franchises on January 1, 2009. The company operates under the name HOODZ. HOODZ International, LLC is a wholly owned subsidiary of BELFOR Franchise Group, LLC, which was formed in 2007. BELFOR Franchise Group, LLC is a subsidiary of BELFOR (USA) Group, Inc., which offers property and electronic restoration services and was formed in 1995. BELFOR Holdings, Inc., formed in 2006, fully owns BELFOR (USA) Group, Inc. and was purchased by ASP BF Intermediate Sub, LLC in 2019.
Financial Overview
Investment Range
$39,988 - $244,307
Franchise Fee (Low)
$23,920
Franchise Fee (High)
$89,900
Royalty %
10%
Marketing %
1%
Equipment Costs (Low)
$6,000
Equipment Costs (High)
$123,700
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
BFG Holdco, Inc., the affiliate guaranteeing HOODZ International, LLC's obligations, reported consolidated net losses for the years ending December 31, 2024, 2023, and 2022. The company recognized significant goodwill impairment losses of $10.5 million in 2024 and $45.5 million in 2023, attributed to deteriorating economic conditions, the elimination of TruckMount manufacturing, and strategic shifts to reduce the franchise network. Despite these losses, the company maintains positive working capital, indicating sufficient current assets to cover current liabilities. Stockholders' equity remains positive, though it has decreased over the past three years. The auditor issued an unqualified opinion, but the Michigan state addendum notes that the franchisor's net worth (Stockholders' Equity) was less than $100,000 in 2024, which triggered a requirement for a surety bond.
Financing Details
HOODZ International, LLC offers financing for a portion of the Initial Franchise Fee to franchisees who meet their credit qualifications. For a Standard, Express, or Related Franchise, HOODZ may finance up to 50% of the Initial Franchise Fee, requiring a minimum down payment of 50%. For Conversion Franchises, HOODZ may finance up to 75% of the Initial Franchise Fee, with a minimum down payment of 25%. The interest rate offered is currently 9% APR for up to 36 months, though HOODZ reserves the right to adjust the APR up to 15% based on the franchisee's credit history, but not after the Franchise Agreement is signed. The financing is secured by a personal guaranty from the franchisee, all owners, and their respective spouses. If a franchisee fails to make payments, HOODZ can charge a late fee, demand immediate payment of the full outstanding balance, and potentially terminate the Franchise Agreement after a 10-day cure period. HOODZ also helps facilitate SBA loans and suggests third-party lenders like FranFund, Benetrends, and Directed Equity.
Performance Metrics
Total US Locations
136
Franchised Units
130
Corporate Units
6
Avg Square Footage
350
Franchising Since
2009
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
HOODZ International, LLC has no litigation to report in Item 3 of its Franchise Disclosure Document. This means that the franchisor, its predecessors, affiliates, or key executives have not been involved in any material litigation, such as lawsuits alleging fraud, trademark infringement, or breach of contract, that would require disclosure.
Bankruptcy History
HOODZ International, LLC has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document. This indicates that neither the franchisor, its predecessors, affiliates, nor any of its current key executives have filed for bankruptcy or been involved in any bankruptcy proceedings that would require disclosure.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, HOODZ International, LLC franchisees must meet several conditions. These include being in substantial compliance with their Franchise Agreement and any related agreements, not having received three or more notices of default within the last 30 months (even if cured), and not having failed to make timely payments to HOODZ International, LLC on more than three occasions in the last 24 months. Franchisees must also consistently service customers according to HOODZ System Standards, sign the then-current franchise agreement (which may have different terms), make any required remodeling, repairs, upgrades, or repurchases of equipment or vehicles to meet current System Standards, and meet the net-worth and financial qualifications required of a new franchisee. Additionally, franchisees must meet the minimum gross sales requirements for a business in its 11th year of operation, sign a general release of claims against HOODZ International, LLC and its affiliates, and pay the then-current renewal fee. Franchisees must provide written notice of their intent to renew no earlier than nine months and no later than six months before the agreement expires.
Training & Support Program
Franchisor Assistance
HOODZ International, LLC provides comprehensive support to its franchisees, starting with pre-opening assistance through its Jumpstart Training Program. This program, conducted in the franchisee's hometown with remote guidance from HOODZ staff, helps with financial planning, reviewing System Standards, initial advertising, acquiring insurance, and selecting and leasing office space. After the Jumpstart program, the Managing Owner and, if applicable, a Designated Manager, must complete a mandatory 12-day Business Manager and Technical Operations Training at HOODZ headquarters or another designated location. This training covers marketing, public relations, sales techniques, the HOODZ system for cleaning commercial exhaust hood and oven systems, and administrative activities including the HOODZ Software. After opening, HOODZ International, LLC provides ongoing guidance on new products, services, and methods, purchasing supplies, implementing marketing and promotional programs, and financial and daily operations. Franchisees receive support for the HOODZ Software, a dedicated business phone number, and periodic updates to the HOODZ System Standards. They also receive periodic refresher training courses and conferences at least once per year.
Initial Training Hours
90
Training Location
Ann Arbor Training Center
Ongoing Support
After opening, HOODZ International, LLC franchisees receive ongoing support including guidance on new products, services, and methods, assistance with purchasing supplies and products, and help with formulating and implementing marketing and promotional programs. Franchisees also get advice on financial and daily operations, including accounting and record-keeping, and receive support for the HOODZ Software. HOODZ International, LLC provides a business phone number to be used by the franchisee and periodically modifies the HOODZ System Standards to reflect changes. Franchisees are required to attend periodic refresher training courses and conferences, typically at least one per year, at locations and times determined by HOODZ International, LLC, and may be charged fees for these events.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
hybrid
Owner Participation
full-time
Territory Type
non-exclusive
Staff Count
2
Territory Size Requirements
HOODZ International, LLC defines its franchise territories based on the number of Retail Food Service Customers (RFSCs) within specific zip codes. A Standard Territory must contain no less than 1,600 but not more than 2,000 RFSCs, with a maximum capacity of 3,000 RFSCs. An Express Territory must contain no less than 750 but not more than 1,000 RFSCs, with a maximum capacity of 1,599 RFSCs. Franchisees can extend their territories by paying an additional fee of $30 per RFSC over these base amounts. The number of RFSCs is determined by HOODZ International, LLC based on data from ESRI and InfoUSA.
Staffing Notes
HOODZ International, LLC requires franchisees to employ at least one full-time Service Technician to perform and oversee the commercial exhaust hood cleaning and other authorized services. The franchisee is responsible for training these technicians to HOODZ International, LLC's specifications. In addition to Service Technicians, franchisees are expected to employ sales and/or account management employees, and customer service staff, reflecting payroll costs for operational and customer service roles. All Service Technicians, sales, and account management employees must sign non-disclosure and confidentiality agreements as a condition of their employment.