HOODZ Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Food & Beverage
• Initial Investment: $169,038 to $214,307
• Franchise Fee: $59,900
• Royalty: 10% of gross sales up to $999,999.99 annually; 9% above $1,000,000; 8% above $2,000,000; 7% above $3,000,000
• Marketing / Ad Fee: Up to 1% of gross sales when established
• Key additional recurring fees: Technology, Licensing and Upgrade Fee currently $60 per week; other event, transfer, renewal, late, and administrative fees may apply
• Number of locations: 137 total outlets at year-end 2024, including 131 franchised and 6 company-owned
• Best Fit: Manager-led owner or active oversight operator

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The disclosure estimates a single-territory initial investment of $169,038 to $214,307, with a stated initial franchise fee of $59,900. Additional funds are estimated at $10,000 to $30,000, which suggests working capital is a meaningful part of the opening budget.

The startup cost appears to fall in a mid-range band rather than a low-cost home-based entry point. The disclosure also indicates the model is equipment-heavy, which likely contributes to the upfront capital requirement.

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• Royalty: 10% of gross sales up to $999,999.99 annually; 9% above $1,000,000; 8% above $2,000,000; 7% above $3,000,000
• Brand Marketing Fund: Up to 1% of gross sales, when established
• Technology, Licensing and Upgrade Fee: Currently $60 per week
• Renewal Fee: 10% of the then-current initial franchise fee
• Transfer Fee: Currently $9,900 per territory to a new franchisee, or $3,000 to a current franchisee
• Late Report Fee: $20 per week
• Late Payment Fee: 5% of amount due or $50 per week, whichever is greater
• Administrative Fee: Currently $500 per transaction

Overall, the recurring structure includes a relatively high royalty on gross sales, plus a weekly technology charge and potential marketing contribution. That means fee load should be evaluated against revenue mix and operating costs, not revenue alone.

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Yes, the FDD includes Item 19 financial performance data, but it reports gross sales, not profit. The figures are unaudited, and the sample excludes businesses that were not open for the full calendar year.

For 2024, the disclosure separates results between multi-territory operators and single-territory operators.

2024 Multi-territory operators

• Sample size: 30 franchisees
• Average annual gross sales (all): $1,675,077
• Median annual gross sales (all): $1,251,127
• Range: $427,200 to $8,797,179

Quartiles:

• Top 25% average: $3,823,881
• Top 25% median: $2,904,212
• Bottom 25% average: $526,931
• Bottom 25% median: $541,127

2024 Single-territory operators

• Sample size: 30 franchisees
• Average annual gross sales (all): $728,926
• Median annual gross sales (all): $546,028
• Range: $208,152 to $2,499,457

Quartiles:

• Top 25% average: $1,570,550
• Top 25% median: $1,456,109
• Bottom 25% average: $259,562
• Bottom 25% median: $257,934

2024 Company stores

• Operators: 2
• Average annual gross sales: $1,743,987
• Median annual gross sales: $1,743,987
• Range: $1,242,881 to $2,245,093

What the numbers suggest

The spread is wide. In 2024, single-territory operators ranged from about $208k to $2.5M in gross sales, while multi-territory operators ranged from about $427k to $8.8M. Median results are materially below average results in both groups, which suggests some higher-volume operators pull the averages upward.

The multi-territory data shows substantially higher gross sales than the single-territory group, but that does not establish better economics because larger operations may also carry higher labor, equipment, vehicle, and overhead costs. Revenue does not equal profit.

The FDD also includes 2023 and 2022 gross sales tables, showing that historical results were disclosed across multiple years, but the disclosure does not provide expense or margin data needed to assess earnings.

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• B2B or B2C: B2B
• Revenue pattern: The disclosure suggests an ongoing service model rather than one-time retail transactions
• Operational characteristics: Territory-based service business; manager involvement is required; equipment use appears meaningful; technology systems are part of the operating model

This does not read like a passive franchise. The disclosure indicates a managing owner must be designated, and the business appears to require active supervision of field operations.

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Advantages

• Item 19 includes actual historical gross sales for 2022, 2023, and 2024
• The system had 137 total outlets at year-end 2024, including 131 franchised units
• 2024 outlet count increased from 135 to 137 systemwide
• Multi-territory operators posted materially higher gross sales than single-territory operators in the 2024 data set

Considerations

• The royalty structure starts at 10% of gross sales, which is a meaningful charge before operating expenses
• Revenue dispersion is wide, especially between top and bottom quartiles
• The initial investment of $169,038 to $214,307 is not a low-entry-cost model
• The territory is non-exclusive, which limits territorial protection
• The disclosure does not provide profit, margin, or owner income figures

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This franchise may fit an operator comfortable with a service business that requires management oversight, field execution, and scaling through territories. It may be more aligned with someone prepared to supervise operations rather than someone seeking a simple passive ownership structure.

It likely does not fit a buyer who wants exclusive territory rights, low startup cost, or clear profit benchmarks from the FDD.

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• Businesses not open for the full calendar year were excluded from the Item 19 sample
• The disclosure indicates required training and management participation, and certain failures can trigger immediate termination rights
• Renewal is not automatic on the same terms; the renewal agreement may include materially different terms, including royalty rate and territory
• Some recurring and event-based fees can increase over time under the agreement
• Company-owned outlet counts were flat at 6 from 2022 through 2024, so the disclosure does not clearly establish whether future company-unit strategy will change

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HOODZ presents a service-based, territory-driven model with a meaningful operating history and detailed gross sales disclosure. The main tradeoff is that the concept shows a broad revenue range and room for scale, but it also carries a mid-level startup cost, a notable royalty burden on gross sales, non-exclusive territory rights, and no disclosed profit data.

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