In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Gotcha Covered franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Gotcha Covered franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Gotcha Covered outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Gotcha Covered franchise opportunity

Section V – Presentation and analysis of Gotcha Covered’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, highest, and lowest monthly and annual sales for the 90 Gotcha Covered reporting franchisees representing 93 franchised businesses that operated during the entire 2023 calendar year

• average, median, highest, and lowest monthly and annual sales for the first full year of operations during 2023 for the 11 Gotcha Covered reporting franchisees representing 11 franchised businesses that operated during the entire 2023 calendar year, who had 12-24 months of reported operations

• 2023 average, median, highest, and lowest monthly and annual sales for the 20 Gotcha Covered reporting franchisees representing 22 franchised businesses that operated during the entire 2023 calendar year, who had 25-36 months of reported operations (established franchisees)

• 2023 average, median, highest, and lowest monthly and annual sales for the 59 Gotcha Covered reporting franchisees representing 60 franchised businesses that operated during the entire 2023 calendar year, who had 37+ months of reported operations (mature franchisees)

• 2023 average, median, highest, and lowest close ratio for the Gotcha Covered reporting franchisees (12-24 months operating, 25-36 months operating, 37+ months operating, and overall)

• 2023 average, median, highest, and lowest sale amount for the Gotcha Covered reporting franchisees (12-24 months operating, 25-36 months operating, 37+ months operating, and overall)

• 2023 average, median, highest, and lowest sale margin for the Gotcha Covered reporting franchisees (12-24 months operating, 25-36 months operating, 37+ months operating, and overall)

• 2016, 2017, 2018, 2019, 2020, 2021, 2022, and 2023 systemwide revenues for all Gotcha Covered reporting franchisees, without excluding any who terminated operations or who were in the early stages of their operations

Section VI – Key ratios, comparables, computations, and analyses for the Gotcha Covered franchise opportunity (exclusive content for Platinum subscribers)

Section I – Gotcha Covered Franchise Costs

• Gotcha Covered franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $62,910 to $69,900
• Franchise Starter Package:  $19,900
• Annual Conference Registration Deposit:  $1,000
• Launch Campaign (Marketing for Grand Opening):  $15,000 to $30,000
• Training:  $250 to $2,000
• Equipment:  $0 to $600
• Insurance:  $1,000 to $4,000
• Miscellaneous Opening Costs:  $100 to $1,500
• Additional Funds for First 3 Months:  $3,000 to $7,500
• Total Estimated Gotcha Covered Franchise Costs:  $103,160 to $136,400

Section II – Gotcha Covered’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Gotcha Covered’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $62,910 to $69,900

• Royalty:  1st month of first Franchise Year: $350; 2nd month of first Franchise Year: $400; 3rd month of first Franchise Year: $450; 4th month of first Franchise Year: $700; 5th month of first Franchise Year: $750; 6th month of first Franchise Year: $800; 7th month of first Franchise Year: $1,050; 8th month of first Franchise Year: $1,100; 9th month of first Franchise Year: $1,150; 10th month of first Franchise Year: $1,300; 11th month of first Franchise Year: $1,350; 12th through 36th month of Franchise Term: $1,400; 37th month of Franchise Term through remainder of initial term: $2,000, plus $0.06 for each household above 30,000 households

• Additional Area Fee:  then-current fee (currently $2.06 per additional household)

• Marketing Fund Fee:  1st month through 4th month of first Franchise Year: $125; 5th through 7th month of first Franchise Year: $250; 8th through 10th month of first Franchise Year: $375; 11th through 13th month of Franchise Term: $550; 14th through 17th month of Franchise Term: $625; 18th through 20th month of Franchise Term: $750; 21st through 23rd month of Franchise Term: $875; 24th month of Franchise Term and thereafter: $1,000

• Local and Regional Marketing Cooperative:  established by cooperative members

Section III – Number of Franchised and Company-Owned Gotcha Covered Outlets

Franchised

2021

• Outlets at the Start of the Year:  116
• Outlets at the End of the Year:  128
• Net Change:  +12

2022

• Outlets at the Start of the Year:  128
• Outlets at the End of the Year:  146
• Net Change:  +18

2023

• Outlets at the Start of the Year:  146
• Outlets at the End of the Year:  154
• Net Change:  +8

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the Gotcha Covered Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Gotcha Covered Franchise (Item 19, 2024 FDD)

• As of December 31, 2023, there were 147 Gotcha Covered Franchised Businesses operating in the United States, 7 Gotcha Covered Franchised Businesses operating in Canada, and no company-owned Gotcha Covered Franchised Businesses.

• The information in the tables below is a historical financial performance representation for the 132 Gotcha Covered Franchised Businesses that operate in the United States and had been in operation for at least one year as of December 31, 2023 (“Reporting Group”) for the 2023 calendar year (“Reporting Period”).

• Gotcha Covered excluded Canadian Gotcha Covered Franchised Businesses, which are not offered under the Franchise Disclosure Document.

• Gotcha Covered also excluded Gotcha Covered Franchised Businesses that closed during the Reporting Period or that had not operated for a full 12 months during the Reporting Period (excluding system-wide revenues by year).

• Due to the variation in use of Gotcha Covered’s sales software, certain data came from Reporting Groups comprising different sizes, with most data coming from a Reporting Group of 90 Gotcha Covered Franchisees, whereas others drew from a Reporting Group of up to 132 Gotcha Covered Franchised Businesses.

• The Franchisees and Franchised Businesses comprise those who have reported to Gotcha Covered, in each Reporting Group, respectively, based on usage of Gotcha Covered’s designated reporting functions. Gotcha Covered has not excluded any data reported to it, apart from those who did not operate for at least one year as of December 31, 2023 or those Franchisees or Franchised Businesses whose operations are not in the United States.

• Gotcha Covered has not audited these amounts, but has no reason to doubt the accuracy of the information.

• The following information includes historical financial performance representations from each Reporting Group during the Reporting Period. As a result, the characteristics of these Gotcha Covered Franchisees and Gotcha Covered Franchised Businesses may be different from those of a new franchisee’s business. These financial performance representations disclose only average sales and key performance indicators and do not take into account the cost of services performed or franchisee expenses.

• The data used in these tables was obtained from sales reports delivered to Gotcha Covered by franchisees or franchised businesses, and from Gotcha Covered’s administrative access to the required sales software used by franchisees.

• In these tables the following definitions apply:

• “Average Annual Sales” is reported as the total Gross Sales of a Gotcha Covered Franchisee during the Reporting Period.

• “Average Monthly Sales” is reported as the Average Annual Sales of a Gotcha Covered Franchisee divided by 12 (months).

• “Average Close Ratio” is calculated by dividing the total number of closed sales from each Gotcha Covered Franchised Business by the total number of appointments by the same Gotcha Covered Franchised Businesses as reported by the Franchisees during the Reporting Period.

• “Average Sale Amount” is calculated by dividing the total amount of sales contracts from each Gotcha Covered Franchised Business by the total amount of gross sales from sales contracts by the same Gotcha Covered Franchised Businesses as reported by the Franchisees during the Reporting Period.

• “Average Sale Margin” is calculated by dividing each Gotcha Covered Franchised Business’s total amount of gross cost from sales contracts by the total amount of gross sales from sales contracts by the same Gotcha Covered Franchised Businesses as reported by the Franchisees during the Reporting Period, and taking an average of each Gotcha Covered Franchised Business’s percentage to determine the overall average for any given Reporting Group.

Part 1 – Average Overall Sales Performance Data for Franchisees in the 2023 Reporting Period (90 Reporting Franchisees Representing 93 Franchised Businesses That Operated During the Entire 2023 Calendar Year)

• Average Monthly Sales:  $49,377.58
• Of the reporting franchisees, 31 or 34.4% of them attained or surpassed the stated results. The median result was $33,338.18, with a low of $8,436.42 and a high of $307,538.08.

• Average Annual Sales:  $592,530.92
• Of the reporting franchisees, 31 or 34.4% of them attained or surpassed the stated results. The median result was $400,058.12, with a low of $101,237.00 and a high of $3,690,457.00.

Part 2 – Average Sales Performance Data for First Full Year of Operations During 2023 (11 Reporting Franchisees Representing 11 Franchised Businesses That Operated During the Entire 2023 Calendar Year, Who Had 12-24 Months of Reported Operations)

• Average Monthly Sales:  $20,772.06
• Of the 11 reporting franchisees, 5 or 45.5% of them attained or surpassed the stated results. The median result was $20,756.42, with a high of $39,337.25 and a low of $8,436.42.

• Average Annual Sales:  $249,264.71
• Of the 11 reporting franchisees, 5 or 45.5% of them attained or surpassed the stated results. The median result was $249,077.00, with a high of $472,047.00 and a low of $101,237.00.

Part 3 – Average Sales Performance Data for Established Franchisees During 2023 (20 Reporting Franchisees Representing 22 Franchised Businesses That Operated During the Entire 2023 Calendar Year, Who Had 25-36 Months of Reported Operations)

• Average Monthly Sales:  $35,490.11
• Of the 20 reporting franchisees, 6 or 30.0% of them attained or surpassed the stated results. The median result was $30,619.71, with a high of $83,523.00 and a low of $9,691.87.

• Average Annual Sales:  $425,881.34
• Of the 20 reporting franchisees, 6 or 30.0% of them attained or surpassed the stated results. The median result was $367,436.50, with a high of $1,002,276.00 and a low of $116,302.49.

Part 4 – Average Sales Performance Data for Mature Franchisees During 2023 (59 Reporting Franchisees Representing 60 Franchised Businesses That Operated During the Entire 2023 Calendar Year, Who Had 37+ Months of Reported Operations)

• Average Monthly Sales:  $59,418.42
• Of the 59 reporting franchisees, 20 or 33.9% of them attained or surpassed the stated results. The median result was $47,335.17, with a high of $307,538.08 and a low of $8,600.75.

• Average Annual Sales:  $713,021.10
• Of the 59 reporting franchisees, 20 or 33.9% of them attained or surpassed the stated results. The median result was $568,022.00, with a high of $3,690,457.00 and a low of $103,209.00.

Part 5 – Average Close Ratio Performance Data for Franchised Businesses in the 2023 Reporting Period

• Average Overall Close Ratio:  49.54%
• Of the 132 reporting franchised businesses overall, 72 or 54.5% attained or surpassed the stated results. The median result was 52.1%, with a high of 100.0% and a low of 0.0%.

• 12-24 Months Operating Average Close Ratio:  47.75%
• Of the 35 reporting franchised businesses that had 12-24 months of reported operations, 16 or 45.7% attained or surpassed the stated results. The median result was 45.0%, with a high of 100.0% and a low of 1.9%.

• 25-36 Months Operating Average Close Ratio:  50.12%
• Of the 28 reporting franchised businesses that had 25-36 months of reported operations, 18 or 64.3% attained or surpassed the stated results. The median result was 53.1%, with a high of 76.5% and a low of 0.0%.

• 37+ Months Operating Average Close Ratio:  49.82%
• Of the 69 reporting franchised businesses that had 37+ months of reported operations, 40 or 58.0% attained or surpassed the stated results. The median result was 53.8%, with a high of 100.0% and a low of 0.0%.

Part 6 – Average Sale Amount Performance Data for Franchised Businesses in the 2023 Reporting Period

• Average Overall Sale Amount:  $4,008.13
• Of the 126 reporting franchised businesses overall, 56 or 44.4% attained or surpassed the stated results. The median result was $3,929.99, with a high of $11,564.64 and a low of $716.27.

• 12-24 Months Operating Average Sale Amount:  $3,823.12
• Of the 35 reporting franchised businesses that had 12-24 months of reported operations, 16 or 45.7% attained or surpassed the stated results. The median result was $3,753.37, with a high of $11,564.64 and a low of $716.27.

• 25-36 Months Operating Average Sale Amount:  $4,199.72
• Of the 27 reporting franchised businesses that had 25-36 months of reported operations, 9 or 33.3% attained or surpassed the stated results. The median result was $3,981.57, with a high of $8,129.88 and a low of $1,954.56.

• 37+ Months Operating Average Sale Amount:  $3,986.84
• Of the 64 reporting franchised businesses that had 37+ months of reported operations, 35 or 54.7% attained or surpassed the stated results. The median result was $4,013.10, with a high of $7,570.33 and a low of $1,188.93.

Part 7 – Average Sale Margin Performance Data for Franchised Businesses in the 2023 Reporting Period

• Average Overall Sale Margin:  60.42%
• Of the 90 reporting franchised businesses overall, 32 or 35.6% attained or surpassed the stated results. The median result was 55.5%, with a high of 83.2% and a low of 29.6%.

• 12-24 Months Operating Average Sale Margin:  56.67%
• Of the 32 reporting franchised businesses that had 12-24 months of reported operations, 13 or 40.6% attained or surpassed the stated results. The median result was 53.6%, with a high of 79.7% and a low of 30.6%.

• 25-36 Months Operating Average Sale Margin:  61.09%
• Of the 23 reporting franchised businesses that had 25-36 months of reported operations, 9 or 39.1% attained or surpassed the stated results. The median result was 58.5%, with a high of 83.2% and a low of 34.5%.

• 37+ Months Operating Average Sale Margin:  61.68%
• Of the 35 reporting franchised businesses that had 37+ months of reported operations, 11 or 31.4% attained or surpassed the stated results. The median result was 56.7%, with a high of 77.4% and a low of 29.6%.

• The reporting franchisees include all outlets reporting at least one year of historical revenue and performance data at the time of preparation of the disclosure document. All franchisees were requested to provide information.

• Some outlets have earned this amount. Your individual results may vary. There is no assurance that you will earn as much.

Part 8 – System-Wide Revenues

• The following chart reflects system-wide revenues for the years outlined and includes all reporting franchisees, without excluding any who terminated operations or who were in the early stages of their operations.

• For this chart, System-Wide Revenues means the sum of each Franchise Territory’s Gross Revenues during the calendar year listed.

• 2016:  $18,299,446
• 2017:  $21,370,869
• 2018:  $20,287,870
• 2019:  $27,564,146
• 2020:  $33,764,329
• 2021:  $50,108,422
• 2022:  $58,002,433
• 2023:  $64,722,032

• Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

Section VI – Gotcha Covered Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️