Nicole Sowell

Gabriella Hert

HOODZ Franchise Business Plan

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Executive Summary

Mission Statement

HOODZ strives to provide the best service to clients, all while supporting a culture of training

and dedication. With extensive kitchen exhaust training, HOODZ ensures a professional kitchen

exhaust cleaning up to national and local regulations, providing facilities with what they deserve.

Company Description

HOODZ International is a national kitchen exhaust cleaning franchise, owned by the BELFOR

franchise group. HOODZ benefits from the backing of BELFOR International, an internationally

known and respected property restoration entity. HOODZ has an experienced and trained staff

that provides a professional clean to keep businesses’ kitchens and facilities in top operating

condition while in compliance with National Fire Protection Association (NFPA) Standard-96,

IKECA ANSI C-10 Standard, as well as local jurisdictional requirements. What makes HOODZ

unique is that our technicians provide a customized cleaning plan to fit clients’ specific needs.

Services/ Products Offered

Products and Services

Commercial Oven Cleaning
Grease Trap & Dumpster Area Cleaning
Fan Access Panel Installation
Kitchen Exhaust Cleaning
Kitchen Floor & Equipment Cleaning
Soak Tank Service Program
Concrete Restoration & Cleaning
Exhaust Fan Hinge Kit Installation
Grease Containment Systems
Kitchen Hood Cleaning
Pressure Washing Cleaning
Vent Hood Filter Cleaning

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Target Market

The target market will consist of various restaurants, schools, hospitals, nursing homes, malls,

airports, and hotels of the Northeast Florida area such as; Jacksonville, Orange Park, St.

Augustine, Fernandina, Amelia Island, Palm Coast, and Daytona Beach.

Competitive Advantages

Unlike most kitchen exhaust cleaners, HOODZ International is a part of a national franchise

organization specialized in cleaning complex hoods systems. All HOODZ technicians are trained

in compliance to NFPA 96 standards, which gives HOODZ a huge competitive advantage.

HOODZ provides picture job reports, insurance, workers’ compensation, professional training to

technicians, and has a strong reputation of providing a quality clean every time.

Management Team

In the first year of operations, the HOODZ team of Jacksonville will consist of the owner, a lead

technician, and a spray technician. The lead and spray technicians will work together on a single

HOODZ box truck. The following year, the franchise will purchase another operating truck as

the number of jobs increase. Another team of lead and spray technicians will be hired to work the

second box truck, along with an operations manager to oversee all measures of quality control. In

the third year of operations, there will be a general manager responsible for all day-to-day

operations of running the business.

Business Resources

Major operating equipment such as pressure washers, hot water burners, ladders, equipment

wear, and tools are all provided in the purchase of the HOODZ box truck. The HOODZ box

truck is purchased through HOODZ for $80,000 and will be paid off over the course of several

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years at $881 per month. All supplies and equipment needed to run the business is purchased

through HOODZ Depot and HOODZ’s national Lowes account.

Location

The new HOODZ franchise will be located in the heart of Jacksonville, Florida, at 4349 St

Augustine Rd, 32257 and will cover the Northeast Florida territory. All day-to-day business will

be conducted out of a fully dedicated residential/home office. An industrial warehouse will be

rented out for $60 per month during the first year of operations to store the HOODZ box truck

and supplies. The size of the facility used for storage and the cost of rent will increase as revenue

increases during the first 3 years of operations.

Financial Plan

The total investment necessary to begin operation of HOODZ of Jacksonville is projected to be

$120,000. Using own personal savings, $80,000 will be used to make a down payment for the

initial franchise investment. The other $40,000 will be obtained by taking out a 5 year loan

through HOODZ International financing terms and agreement. For a loan term of 5 years at 8%

interest rate, the monthly payment will be $811.06 ($9,732.72 a year).

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Business History, Background, and Objectives

Company Description

HOODZ International is passionate about providing the best possible service to clients. HOODZ

supports a culture of training by providing our technicians with a state of the art training facility

in which to learn the art of kitchen exhaust cleaning. Commercial kitchens, such as restaurants

and food establishments, are required to have their kitchen exhausts cleaned to prevent health

issues and fires resulting from a build-up of grease. Providing facilities across the world with

general assessments of their exhaust systems, complete kitchen exhaust cleaning service

programs, rooftop grease containment systems, conveyor oven cleaning services, and other

service plans and products to keep clients’ kitchens in top operating condition, HOODZ ensures

a professional clean every time. HOODZ provides cleaning in compliance with the National Fire

Protection Association (NFPA) Standard-96, IKECA ANSI C-10 Standard, as well as clients’

local jurisdictional requirements. HOODZ offers the highest level of training, specialized

equipment, and support in the kitchen exhaust cleaning industry. Additionally, HOODZ supports

a culture of charitable donation of time, energy, and giving back to communities.

Short Term/ Long Term Objectives

Short Term Long Term

Establish reputation/ brand name throughout Build upon reputation/ establish client base

territory Average 40+ cleans/ jobs a week

Average 6 cleans/ jobs a week Relocate into larger storage space

Average ~$141,00 in revenue after first year Increase number of box trucks and employees

of operations

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Major Achievements

Since HOODZ began franchising in 2009, it has become one of the fastest growing franchises in

the United States. The company is the largest and most reputable network of professional kitchen

exhaust cleaners worldwide. HOODZ International is a member of the International Kitchen

Exhaust Cleaning Association (IKECA). IKECA is the first trade association for the kitchen

exhaust cleaning industry and its members represent the best in the industry. Currently, HOODZ

has over 100 offices, reaching thousands of kitchens and business across the world.

Challenges/ Obstacles

While the NFPA requires code compliance in commercial kitchens, many customers avoid

compliance requirements. This can make repeat scheduling of service difficult when customers

do not abide by NFPA code and schedule cleaning when required. Not only is this overdue build-

up of grease dangerous for the technicians cleaning it, but it can put a community in danger if

left unchecked/ uncleaned. In addition, the kitchen exhaust cleaning industry attracts short-term

employees, making it difficult to retain employees. Each new hired technician is required to go

to training in Michigan, meaning there is a training cost to each new employee.

Recent Changes

Recently, there has been an update of NFPA-96 codes that HOODZ must abide by. Other than

new regulations, the kitchen exhaust cleaning industry is a relatively steady, increasing market.

There have been no recent changes in management or structure. However, HOODZ is a franchise

that has the ability to easily adapt and provide a variety of options to any changes or

circumstances.

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Business Environment

The HOODZ franchise will be located in the heart of Jacksonville, Florida. The city is a large

commercial and financial center located along the northern coast of Florida. Jacksonville is

growing twice as fast as the rest of the nation, ranked #7 Best City for Job Seekers by Money,

and is a hotspot for companies seeking skilled talent. Just within the past 6 years, Florida’s

population has grown by almost 2 million people. Economically, Jacksonville is thriving. Future

job growth within the next ten years is expected to be 39.21%. According to the Bureau of

Economic Analysis, from 2010 to 2017 consumers in Florida have increased their spending on

services by over $100,000, making the variety of services that HOODZ offers all the more

desirable. Florida’s tax environment is favorable for businesses; Florida has no corporate

franchise tax, no state personal income tax, and no taxes on inventories. The tax rates in Florida

are among the lowest in the United States. Having one of the most diversified industry bases in

Florida, the economy of Jacksonville is more resilient to any ups and downs. Geographically,

Jacksonville expands 875 square miles, making the city the largest in the continental United

States. By establishing a HOODZ franchise in Jacksonville, HOODZ of Jacksonville will be

given the jurisdiction over all of Northeast Florida. Due to the increase in population and jobs in

the Northeast Florida area, HOODZ of Jacksonville is located in a prime business market.

Products and/ or Services

Products/ Services Offered

HOODZ offers a variety of commercial kitchen cleaning services ranging from inside the kitchen

to outside of the facility such as: concrete restoration and cleaning, grease trap and dumpster area

cleaning, exhaust fan hinge kit installation, fan access panel installation, grease containment

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systems and services, kitchen exhaust cleaning, kitchen hood cleaning, kitchen floor and

equipment cleaning, pressure washing cleaning, soak tank service program, and vent hood

cleaning services. Qualified professionals are trained/certified to inspect and service kitchen

exhaust systems at HOODZ’s state of the art training facility, providing a cleaning that in in

compliance with national and local regulations. Local office representatives at each HOODZ

franchise help create a customized cleaning program to fit clients’ specific and unique needs.

Planned Changes/ Additions

Commercial oven cleaning is a service planned on being offered in the future. This type of

cleaning would be exclusively for large kitchen ovens, such as pizza ovens. Commercial oven

cleaning will require an extensive process designed to ensure the maximum life expectancy and

efficiency of customers’ ovens. HOODZ has developed customer relationships through the

expertise of kitchen exhaust cleaning and plans to leverage these relationships with perimeter/

outside building cleaning such as dumpster area and pressure washing cleaning. In addition,

HOODZ has plans to set a new filter exchange program in place. Customers can eliminate the

need for their staff to be responsible for cleaning grease filters weekly; instead a HOODZ spray

technician will come and replace the dirty grease filters with clean ones on a weekly basis.

Present Market

Description of Present Market

The present market consists of three major types of business; independents, regional chains, and

national chains. Independents are composed of small business owners such as small family

restaurants. Regional chains are typically fast food restaurants in which many cases one customer

can own multiple locations, or places such as schools or nursing homes. National chains largely

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consist of fast food chains. Regional markets in which clients own multiple locations are crucial

to business due to the opportunity to acquire multiple jobs sites through one client. Whether it be

a food chain or a school system, regional chains prove vital to the HOODZ business.

Growth Potential

Commercial kitchen hood cleaning is required for restaurants, schools, hospitals, nursing homes,

malls, hotels, and airports, providing a wide range of potential customers. The kitchen exhaust

cleaning industry continues to grow due to the growth in number of restaurants. The National

Restaurant Association (NRA) projects the restaurant industry will grow to $799 billion in

revenues in the next year, up 4.3 percent from the previous year. In 2017 restaurant sales were

the greatest in the state of Florida (higher than 6.2% of the national average). Jacksonville,

Florida has experienced substantial growth into the late twentieth and early twenty-first centuries

and only continues to grow. There are over 3,000 restaurants, 800 schools, 10 hospitals, 130

nursing homes, 60 shopping malls, 70 hotels, and 4 airports in Jacksonville. The growth that

Florida’s restaurants and Jacksonville is experiencing is ideal for the growth of HOODZ. Most

restaurants need their kitchen exhaust systems cleaned once every 3-4 months (the national

average is 3.2 times per year). This growth and need for kitchen exhaust cleaning in the

restaurant industry means that there is opportunity for reoccurring revenue. Since the NFPA

(National Fire Protection Association) requires that kitchen exhaust systems must be maintained

up to required code, this allows for repeat business as well as multi-task jobs. Multi-task jobs can

include multiple services provided such as exterior building cleaning, roof cleaning, sidewalk

cleaning, kitchen floor cleaning, dumpster area cleaning, etc.

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NFPA 96 Kitchen Exhaust Cleaning Schedule Requirements

Cooking Type Interval

Solid Fuel (wood, charcoal) Monthly
High Volume, 24 hour operations, Quarterly
charbroiling, wok cooking
Moderate volume cooking Semi-Annually
Low volume cooking (churches, day camps, seasonal operations, senior Annually
centers)

Current Pricing Policy

While HOODZ offers a variety of products and services, a majority of sales comes from hood

cleaning. Services such as concrete restoration/ cleaning, grease trap and dumpster area cleaning,

kitchen floor and equipment cleaning, and pressure washing cleaning are priced accordingly

upon inspection. Hood cleaning and additional services/products are priced as following:

Small Sized Hood Medium Sized Large Sized Hood

Cleaning Hood Cleaning Cleaning
(10-14ft) (15-25ft) (25+ ft)
$450 $540 $630

Grease Fan Access Panels:

Hinge Kits:
Containment: $145 per panel
$145
$45 per filter pillow installation

Specialized
Soak Tank Service
Cleaning:
Program:
Estimated $145 per
$145 per month
hour

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Seasonal Factors

During the winter, the beaches and tourist areas around Northeast Florida tend to slow down due

to the cooler temperatures and decease of tourism. However, this does not greatly affect

HOODZ, only the restaurants that it conducts business with. In the North, HOODZ franchises

may face challenges with the weather or cool temperatures and may be out of business

sometimes months at a time. When temperatures become too low, the water from the pressure

washer freezes. Based in Northeast Florida, this HOODZ franchise will not face such challenges

and maintain a steady reoccurring revenue year long.

Competition

Primary Competitors

HOODZ’s local competitors in the Northeast Florida area consist of companies such as Florida

Hood Cleaning, AAA-Hood Cleaning, and Crenshaw Hood Cleaning. HOODZ also faces

competitors from commercial services within the region and on a national scale from companies

such as Dunwal. Dunwal, however, is a contracting company and consists of individual, existing

kitchen exhaust cleaning companies and has no control over protocols or standards within these

companies. Customers prefer HOODZ due to its compliance to national and local regulations,

and professional clean.

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Competitive Advantages

Being the largest network of kitchen exhaust cleaners with more than 15+ years of experience,

HOODZ has a significant advantage over other kitchen exhaust cleaning businesses. Unlike most

companies in the industry, HOODZ International is a part of a national franchise organization

specialized in cleaning complex hoods systems that can act as a support organization if needed.

All HOODZ technicians are trained in compliance to NFPA 96 standards, which gives HOODZ

a huge competitive advantage over the competition. Although HOODZ is a national franchise,

franchises are locally owned, each with their own territory. When a franchiser purchases a

HOODZ franchise, they are guaranteed their own territory in which they can operate business.

There can be no competition between two separate HOODZ franchises, due to territory

restrictions. HOODZ provides customers with advanced techniques and inspections, while

paying careful attention to detail, that are proven to protect and restore commercial kitchens.

Unlike most in the industry, HOODZ offers roof-top to kitchen-top cleaning. The average

kitchen exhaust cleaners don’t provide a full clean, don’t take before and after job report

pictures, are not trained or certified, not insured or provide worker’s compensation, and are

difficult to contact. The HOODZ picture perfect standard is unique and gives a competitive edge

over the competition. Technicians at HOODZ always document their work, provide digital

pictures on the job, and create a verification report that is provided to the customer and kept on

file. HOODZ provides all of these qualities while maintaining a strong reputation of providing a

professional and entire clean to the system every time.

Competitive Disadvantages

While HOODZ is a national franchise, the company may be less established as other kitchen

exhaust cleaning businesses in the area upon establishing a new franchise. As operations

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progress, the HOODZ franchise will become more established and develop a strong reputation.

However, because HOODZ is such a large national franchise some customers may prefer to stick

to smaller, locally based kitchen exhaust cleaners.

Marketing Plan

Target Market

The target market will consist of various regions of the Northeast Florida area such as; Jacksonville,

Orange Park, St. Augustine, Fernandina, Amelia Island, Palm Coast, and Daytona Beach. Restaurants,

schools, hospitals, nursing homes, malls, airports, and hotels will all be targeted. The target

market is very limited to a certain business-owning class.

Existing Market Techniques, Strategies, and Tools

All HOODZ franchisees are given an initial package by HOODZ International containing

advertising material. In the initial package, there is an initial marketing allowance of $250 that

must be used within the first 60 days of completion of training or the start of operations.

Quarterly mailings promoting HOODZ are required by HOODZ International to be sent out to at

least 1,600 locations within the franchise territory. Only approved advertising techniques and

marketing materials may be used by franchisees; proposed advertising materials must be

submitted for review. Marketing techniques involve the use of certain items, such as trucks, yard

signs, and stickers referencing HOODZ. As part of local marketing, a telephone number

dedicated to the HOODZ business is acquired and maintained. Mediums such as T.V.,

magazines, and ads are not utilized (or to a very small extent) due to the industry having such a

small target market of customers. HOODZ conducts business with facilities containing

commercial kitchens and exhaust systems, most of which does not apply to the general public.

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The return rate on the investments of such advertisement would not be significant. Mailings have

proven to be the most effective method of advertisement since the company first started

franchising in 2009.

Future Market Techniques, Strategies, and Tools

For every HOODZ franchise, at least 1% of quarterly gross sales are to be contributed to the

National Marketing Fund. National Marketing Fund contributions are used to develop, produce

and distribute national, regional and/or local advertising and to create public relations programs

which promote the services offered by HOODZ franchisees. The National Marketing Fund

contributes to the future overall success of the franchise, benefitting all franchisees.

Management and Organization

Management Team

One full-time experienced service technician must be employed to assist performing the actual

commercial exhaust hood and oven system cleaning services. In the first year of operations, the

HOODZ team of Jacksonville, Fl will consist of the franchise owner, a lead technician, and a

spray technician. The lead and spray technicians will work on a single HOODZ box truck

together and conduct all jobs together. The following year, the company will expand to have two

operating box trucks, hiring an additional lead and spray technician to work the second truck,

along with the addition of an operations manager to oversee all measures of quality control and

technicians. In the third year of operations, there will be a general manager responsible for all

day-to-day operations of running the business.

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Development of Management Team

The managing franchise owner must attend the

HOODZ annual convention each year. This

annual convention is held to discuss best

practices and any challenges in the field,

promoting a culture of sharing successes or

shortcomings and assisting one another to

provide the best support possible to clients of

any size and scope. All lead technicians and

HOODZ training facility located in Ann Arbor,
franchise owners are required to attend the Michigan.

HOODZ training facility in Ann Arbor, Michigan upon the start of business or employment.

There, lead technicians and franchise owners or provided with a state of the art training facility

in which they are taught the tools and procedures required to provide a professional cleaning.

Spray technicians and general managers have the option to train at the HOODZ training facility,

but are not required.

Management Succession Plan

In the event that a technician cannot perform, the business owner can take over (in the first year

of operations). The business owner is trained up to NFPA 96 standards and can perform a job if

ever in the need of a technician replacement. By the second year of operations, there will be an

additional operating box truck with another team of lead and spray technicians and a new

operations manager that can perform the job. Following the first year of operations and the

addition of another team of technicians and an operations manager, the owner will no longer

have to work on the job in a time of need. The responsibility will then fall to the operations

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manager in the case that a lead technician or spray technician is unavailable or unable to perform

the job.

Additional Management Personnel

In the first year of operations, the HOODZ team will consist of just two technicians; one lead

technician and one spray technician. After the first year of operations, revenue and client base

will grow and an additional team of technicians (one lead and one spray technician) will be

needed to keep up with the number of jobs. In the second year of operations, there will be two

operating box trucks with four technicians working. An operations manager will be hired during

the second year of operations to insure that everything is running smoothly and will maintain a

level of responsibility over the four technicians and ensure there is a measure of quality control

being provided. The following year, a general manager will be needed to run the business and

take care of day-to-day operations. By this point, the company wills enough jobs and a large

enough client base for a general manager to take over the business.

Business Resources

Major Operating Equipment

Major operating equipment such as pressure washers, hot water burners, ladders, equipment

wear, and tools are all provided in the purchase of the HOODZ box truck. The HOODZ box

truck will be purchased through HOODZ International and is estimated to have a value of

$80,000. The box truck will be paid off over the course of several years with payments of $881

each month. For every $300,000 in revenue (about 500 cleans per year), a new HOODZ box

truck must be purchased to provide new technicians the equipment they need to ensure a

professional clean. Because the purchase of the box truck comes suited with all other material

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and equipment needed to carry out jobs the only other operating equipment needed is a computer

to conduct day-to-day business, which can easily be conducted from a residential/home office.

Major Suppliers, Location, and Payment Terms

All supplies and equipment needed to run the business is provided by HOODZ Depot (owned by

HOODZ International) and Lowes, through which HOODZ International has a national account.

The franchise will be located in the heart of Jacksonville, Florida, working out of an industrial

warehouse. Day-to-day business will be conducted at a fully dedicated residential/ home office.

All trucks and equipment will be housed and kept in the industrial warehouse located at 4349 St

Augustine Rd, 32257, Jacksonville, Fl. The location of the business is ideal for employees and

for servicing customers, due to the warehouse being located directly in the middle of the city.

This allows easy access to restaurants, hospitals, nursing homes, and other clients located across

the city, whether they’re located downtown, the beach, or the suburbs. Employees will benefit

from an easy commute to and from work every day, in addition to an easy commute to and from

various job sites. Monthly rent for a warehouse facility of 400 square feet at this location is

estimated to be $60 per month, or $720 a year. During the first year of operations, the warehouse

facility will house a single HOODZ box truck, along with all supplies and equipment. As the

company grows into the third year of operations, more space will be required to house trucks and

employees. Along with an increase of revenue, monthly rent will increase to $600 per month for

a 1300 square foot warehouse that will contain the two HOODZ box trucks and a small office.

Outside Resources

There are no required outside additional resources since HOODZ does not subcontract and is part

of a worldwide network of professional kitchen exhaust cleaners. All resources needed to fulfill

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customer requirements are covered and provided by HOODZ International. Access to material,

training, and equipment is provided to HOODZ franchisees by HOODZ International.

Quality Control Procedures

At HOODZ, technicians follow the System Quality Assurance and Verification (“QAV”)

procedures and protocol taught during Business Manager and Technical Operations Training.

The QAV accreditation is required to assure consistency and quality service in compliance to

standards for customers. HOODZ provides cleaning in compliance to NFPA 96 standards, a set

of codes and standards set in place for ventilation control and fire protection of commercial

kitchens and exhaust systems by the National Fire Protection Association. Not only does

HOODZ comply to NFPA 96 standards but also complies with customers’ insurance, fire

inspectors, health departments and all federal, state, and local laws. Standardized procedures are

shown through picture reports, which document our technicians’ work before and after

inspections. Picture reports are provided to customers to guarantee and professional, thorough

clean.

Availability of Skilled Labor

Skilled labor is readily available in Jacksonville and it is simple for potential technicians to

become certified in the art of kitchen exhaust cleaning through training programs offered by

HOODZ. HOODZ advertises through job websites such as Snagajob.com, Indeed.com,

Craigslist.com, and the HOODZ national website for lead and spray technician openings. The

HOODZ technicians training program requires certification through HOODZ International. Since

the occupation of cleaning technician does not require any college level education or experience

because they train on the job or at the training facility, there is a large market of available labor.

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Potential technicians must be reliable, available to work week nights and weekends, and be able

to make every shift.

Training

The franchise owner/manager is required to train at the national training center before the start of

operation of business. The national training center is located in Ann Arbor, Michigan and

contains multiple classrooms and fully equipped kitchens for the purpose of training. There,

business owners attend classes on sales, marketing, and business operations. In addition, owners

are taught how to use the software that HOODZ requires all franchisees to use in order to

conduct and keep track of all business. Technicians learn the art of kitchen exhaust cleaning

using the training center’s top of the line kitchen facilities. Not only do the technicians need to

learn this but owners, too, learn the technical training and standards of kitchen exhaust cleaning.

All training is followed by a comprehensive written exam to ensure owners and future

technicians are ready to be out in the field.

Business Manager/ Owner

Hours of Classroom Hours of On-The-Job
Subject Location
Training Training
Ann Arbor Training
Sales Training 7 3
Center/ Onsite in Field
Ann Arbor Training
Marketing Training 6 0
Center
Business Operations Ann Arbor Training
12 0
Training Center
Ann Arbor Training
Software Training 10 0
Center
TOTAL HOURS 35 3

Technical Operations
Subject Hours of Classroom Hours of On-The-Job Location
Training Training
Technical Training – 15.5 0 Ann Arbor Training
Safety, Center

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 Equipment, Chemicals
Technical Training – 36 4.5 Ann Arbor Training
Standards, Guidelines, Center/ Onsite in Field
Implementation
TOTAL HOURS 51.5 0

Projected Number of Full-Time and Part-Time Employees

In the first year of operations, there will be 3 staff employees; business owner, lead technician,

and spray technician. Second year of operations, there will be an additional lead and spray

technician along with an operations manager. In the third year, a general manager will be

acquired for a total of 7 staff employees.

Organizational Chart

The franchise owner will take care of running the business the first two years of operations until

the general manager is hired to take over the responsibilities. The operational manager is in

charge of the two teams of two technicians each who are responsible for going out and doing the

jobs.

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 HOODZ
Franchise
Owner

General
Manager

Operational Manager

Lead Technicians (2) and Spray

Technicians (2)

Financial Plan and Data

Company Sales/ Profit Trends

Being one of the most successful franchises in the nation, the average annual gross sales for all

HOODZ owners is $301,593.99. Annual gross sales are defined as all revenue received from

operating the business, including any sales tax receipts or similar tax receipts. The top 25% of

HOODZ operators maintain an average annual gross sale of $583,822.12. A portion of operators

have exceeded this number and have far outdone the average annual gross sales by well over

$1,000,000.

Single Territory HOODZ Owners

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 Single Territory HOODZ Operators
Average Annual
Quartile HOODZ Operators in that Exceeded
Gross Sales
Group Average
Top 25% 15 $583,822.12 5
Top 50% 29 $452,212.64 11
Top 75% 44 $363,108.92 18
All 58 $301,593.99 22

Strategy and Timeline for Obtaining Capital

The total investment necessary to begin operation of a HOODZ Franchise is anywhere between

$106,537 and $181,799. The projected capital needed for HOODZ of Jacksonville is $120,000.

Using our own personal savings, $80,000 will be used to make a down payment for the initial

franchise investment. The other $40,000 will be obtained by taking a loan out using HOODZ

International financing terms and agreement. For a loan term of 5 years at 8% interest rate, the

monthly payment will be $811.06, or $9,732.72 a year. The interest over the course of the 5 year

loan will be $8,663.35.

Source of Financing HOODZ International

Amount Financed $40,000
Down Payment $80,000
Term (number of years) 5 years
Rate of Interest 8%
Monthly Payment $811.06

Two-Year Projected Operating Statement

In the first year of operations, HOODZ is projected to have $141,120 in revenue averaging about

6 cleans/ jobs a week with the average price of $490. As HOODZ gains a more reputable image

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in Northeast Florida, the price of service that customers are willing to pay increases (thus the

price increase in the 2 Year Projected Revenue table). During the second year of operations, the

franchise is projected to average about 20 cleans/ jobs a week. The projected revenue at the end

of the second year is $530,400. The 2 Year Projection sheet shows the revenue and expenses of

the first two years of operations, according to the listed total cleans per year and projected

revenue in the table below.

2 Year Projected Revenue

Total cleans/ Total cleans/year Average price/clean Projected Revenue
week
Year 1 6 288 $490 $141,120
Year 2 20 1040 $510 $530,400

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 2 year Projections
Year 1 Year 2 Year 3
Estimated Gross Annual Revenue $141,120 $530,400 $877,500
Estimated Monthly Revenue $11,760 $44,200 $73,125

Estimated Expenses Monthly

Employee/ Techinician Salary (taxes, benefits, work comp) (25-35%) $3,528 $13,260 $21,938
Operational Manager Salary $3,333 $4,000
General Manager Salary $5,000
Usables (4%) + Fuel (2.5% PW + 3.5% Truck) $1,176 $4,420 $7,313
Royalty (10%) $1,176 $4,420 $7,313
Monthly Overhead $9,552 $14,664 $20,579
Total Expenses $15,432 $40,097 $66,142
Estimated Profit Monthly -$3,672 $4,103 $6,984
Estimated Total Net Profit Annually -$44,064 $49,236 $83,802
Estimated Net Profit % -31.22% 9.28% 9.55%

Projected Monthly Overhead Expenses

Overhead Expenses Incurred by Most Franchisees Year 1 Year 2 Year 3
Bank Charges & Fees $10.00 $10.00 $10.00
Communications (Internet, office phone line, fax line and mobile phones) $125.00 $250.00 $250.00
Dues and Scubscriptions (Association fees, BNI, Chamber of Commerce, etc.) $50.00 $50.00 $50.00
Equipment/Machinery (pressure washer parts/repairs, misc tools, repairs, etc.) $100.00 $100.00 $100.00
Insurance (General Liability, service vehicle, bonding, umbrella…NOT work comp) $600.00 $600.00 $600.00
IT Expense (GPS fees, weekly technology fees) $135.00 $135.00 $135.00
Legal & Professional Fees (CPA, attorney, etc) $195.00 $195.00 $195.00
Licenses & Permits (city permit, etc) $25.00 $25.00 $25.00
Postage $10.00 $10.00 $10.00
Rent for Office Space and/or Storage (include utilities, taxes, bld insurance) $60.00 $200.00 $300.00
Sales/Estimating Vehicle Cost (Fuel, repairs, tags, insurance, maintenance) $500.00 $500.00 $500.00
Supplies - Office Expenses (envelopes, ink, etc) $50.00 $50.00 $50.00
Uniform Expenses $100.00 $100.00 $100.00
Sub-Total $1,960 $2,225 $2,325

Overhead Expenses Incurred by Some Franchisees

Business meals & entertainment $100 $200 $300
Education & Training $50 $100 $150
Marketing (postcards, give aways, etc.) $100 $100 $100
Recruiting & Relocation $50 $100 $200
Travel (airline, rental cars, baggage fees, hotels) $100 $200 $300
Sub-Total $400 $700 $1,050

Salary Expenses
Owner Salary $5,500 $9,166 $13,750
Sub-Total $5,500 $9,166 $13,750

Loan Expenses
Service Vehicle Loan $881 $1,762 $2,643
HOODZ International Loan $811 $811 $811
Sub-Total $1,692 $2,573 $3,454

Estimated Total Monthly Overhead Including Loans $9,552 Page | 24

$14,664 $20,579
One-Year Projected Cash Flow Statement

HOODZ of Jacksonville is projected to be cash-flow positive by the end of the second year of

operations, ensuring financial stability.

Q1 Q2 Q3 Q4 Y1
Cash Flow from Operating Activites
Receipts from Customers $ 25,101.00 $ 38,673.00 $ 38,673.00 $ 38,673.00 $ 141,120.00
Cash Disbursements
Usables $ 3,528.00 $ 3,528.00 $ 3,528.00 $ 3,528.00 $ 14,112.00
Rent $ 180.00 $ 180.00 $ 180.00 $ 180.00 $ 720.00
Royalty (10%) $ 3,528.00 $ 3,528.00 $ 3,528.00 $ 3,528.00 $ 14,112.00
Salaries $ 27,084.00 $ 27,084.00 $ 27,084.00 $ 27,084.00 $ 108,336.00
Advertising $ 330.00 $ 330.00 $ 330.00 $ 330.00 $ 1,320.00
Supplies $ 750.00 $ 750.00 $ 750.00 $ 750.00 $ 3,000.00
Insurance $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 600.00
Liscences, Permits, Fees, and Dues $ 840.00 $ 840.00 $ 840.00 $ 840.00 $ 3,360.00
Vehicle Loan and Expenses $ 4,548.00 $ 4,548.00 $ 4,548.00 $ 4,548.00 $ 18,192.00
Communications $ 375.00 $ 375.00 $ 375.00 $ 375.00 $ 1,500.00
Travel and Training $ 900.00 $ 900.00 $ 900.00 $ 900.00 $ 3,600.00
HOODZ International Loan $ 2,433.00 $ 2,433.00 $ 2,433.00 $ 2,433.00 $ 9,732.00
Total Disbursements $ 44,646.00 $ 44,646.00 $ 44,646.00 $ 44,646.00 $ 178,584.00
Cash Flow $ (19,545.00) $ (5,973.00) $ (5,973.00) $ (5,973.00) $ (37,464.00)

Conclusion

HOODZ International is one of the fastest growing franchises in the United States. Being the

largest network of professional kitchen exhaust cleaners worldwide, the possibilities are endless.

As long as there are fire protection codes, there will be reoccurring revenue. Within the first two

years of operations, HOODZ of Jacksonville will have a projected revenue of over $530,000.

With a loan of $40,000 from HOODZ International, HOODZ of Jacksonville will pay back that

loan within 5 years an interest rate of 8%, for a total of $8,663.35 in interest. The other $80,000

will come from personal money and will be used to make a down payment on the initial

franchise fee.

Page | 25
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