Overall costs for HOODZ run anywhere from $32,200 to $114,475. See how the costs break down and what funding options might be right for your new venture into the franchise foray.
How COVID-19 affects franchising costs
Strict sanitation and employee protection measures during the coronavirus outbreak add to the typical costs you face when opening a new franchise. Paired with the unusually heavy amount of promotions that may be required by the franchise, you may not see as much in the way of profits starting out. For more information on what support is out there, read our guide to
loans for businesses affected by the coronavirus.
Estimated initial costs
Our cost estimates are accurate as of 2019 from
https://www.franchisedirect.com and include opening fees and expenses only. Your location may result in higher or lower fees.
Franchise fees
HOODZ franchise fees total around $57,400, which is more than the $37,000 average for the 200 largest franchises.
| Initial franchise fee |
$24,900 to $89,900 |
| Royalty |
- 10% of gross sales of up to $999,999.99 for each calendar year - 9% of gross sales exceeding $1,000,000.00 in any given calendar year - 8% of gross sales exceeding $2,000,000.00 in any given calendar year If franchisees fail to achieve the minimum gross sales, the franchisor may collect a minimum royalty |
| Estimated total |
$24,900 to $89,900 |
Equipment fees
Equipment fees total $15,038 for HOODZ. This is less than the $180,023 average for the top 200 franchises.
| Initial package fee |
$7,300 to $19,900 |
| Computer system |
$0 to $2,875 |
| Estimated total |
$7,300 to $22,775 |
Real estate fees
Real estate will set you back $600 for HOODZ, thought it's less than the average of $788,376 for the top 200 franchises.
| Leasehold improvements |
$0 to $1,200 |
| Estimated total |
$0 to $1,200 |
Licenses and permits costs
HOODZ initial licenses and permits will set you back $300. This comes out to less than $18,770 — the overall nationwide average.
| Licenses and permits |
$0 to $600 |
| Estimated total |
$0 to $600 |
All costs were found using the 200 largest franchises nationwide using Franchise Direct's list of more than 300 franchises, and are accurate as of 2019.
How to finance
The best way to finance HOODZ comes down to your personal financial situation. What assets you have available will largely determine how much you need to borrow, and which option suits you best. Potential solutions include:
- Bank loan. Your personal credit plays a large role in getting a business term loan from a bank. Typically this type of funding is for larger amounts.
- Online loan. Credit requirements may be more flexible for an online loan than a bank loan, but amounts may max out at a lower amount — typically around $1 million.
- SBA loan. The good part about SBA loans is that they top out at $5 million, but your business has to meet a number of requirements.
- Credit card. Small costs that aren't fixed, such as stray inventory and supply purchases, may be better off on a business credit card. Just make sure you can pay it off quickly to avoid high APRs.
Also check if HOODZ franchise financing is available. You may be able to get some of the costs covered for less than you would with other traditional funding options.
Compare small business lenders
How HOODZ stacks up
Compare how HOODZ holds up against two similarly sized franchises.
| Average Franchise fees |
$33,000 |
$57,400 |
NA |
| Average Equipment fees |
$250 |
$15,038 |
$6,750 |
| Average Real estate fees |
NA |
$600 |
NA |
| Average Training fees |
NA |
NA |
NA |
| Average Inventory fees |
NA |
NA |
NA |
| Average Marketing fees |
NA |
NA |
NA |
| Average Licenses and permits fees |
NA |
$300 |
NA |
| Average Insurance fees |
NA |
NA |
NA |
| Average Admin fees |
NA |
NA |
$4,000 |
| Average Personnel fees |
NA |
NA |
NA |
| Average Other fees |
NA |
NA |
NA |
Bottom line
HOODZ franchise costs run a total of $73,338. Before you decide to become a franchisee, compare the total costs against industry averages. And to learn more about financing
read our guide to franchise financing.
