HELLO GARAGE

Item 7 lays out initial investments from $165,340 to $205,250 for single territories, including a $59,500 franchise fee, on top of ongoing 5% royalties, 2% brand fund, and software fees like $150/month CRM plus $99 per GarageView license and $11 per email. Item 19 discloses strong top-line performance: average gross revenue of $611,837 and median $574,889 across existing units, suggesting solid demand for garage renovations targeting homeowners and commercial spaces. However, with only 73 franchise locations plus 14 corporate, and 21 SBA loans averaging $123,590, financing is accessible but scale remains modest compared to category peers.

System health raises caution flags: locations shrank from 103 in 2024 to 73 in 2025—a 29% contraction—coupled with 11 terminations and 13 transfers, hinting at operational or market challenges. A single collection lawsuit against a former franchisee underscores payment disputes, while extra tech fees add hidden costs versus home improvement norms. For investors, the revenue punch is enticing if you can weather the shrinkage, but probe FDD Items 20 and 21 deeply before committing to multi-territory expansion.