Hello Garage Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$49,500
Investment required
$132,000 - $161,000
Royalty fee
3.00%

Hello Garage Franchise: A Lucrative Opportunity in Garage Renovation

Hello Garage, established in 2019 and franchising since 2020, has quickly made its mark in the burgeoning garage renovation market, a sector valued at $2.2 billion and experiencing consistent growth each year. Based in Omaha, Nebraska, Hello Garage has rapidly expanded its presence across the industry.

The franchise is distinguished by its straightforward, home-based business model, which requires minimal staffing and no need for leasing or extensive build-outs, enabling franchisees to launch their operations swiftly. Hello Garage provides robust support, including a national appointment center that successfully closes 69% of leads without charging the franchisee. Their comprehensive training program includes virtual sessions, hands-on training, and ongoing support, ensuring franchisees have all the tools needed for success.

The ideal Hello Garage franchisee is someone with a strong passion for customer service, excellent business and managerial skills, outstanding interpersonal abilities, and a drive to grow a scalable business. The franchise looks for individuals who are eager to follow a proven system and are committed to achieving significant financial success.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type Of Expenditure Amount
Initial Franchise Fee $49,500
Technology On-Boarding Fee and Software License Fees $844
Minimum Opening Marketing Spend $20,000 - $30,000
Launch Kit $1,300
Vehicle Financing & Vehicle Wrap $3,000 - $7,000
Opening Inventory Purchase and Initial Equipment Package $46,024 - $50,754
Business Licenses and Permits $140 - $250
Computer System $0 - $4,000
Travel Expenses to Attend Initial Training In-Person $2,000 - $3,000
Insurance $700 - $1,500
Trade Show Booth $1,300 - $2,000
Franchise Resource Bookkeeping Fee $750 per franchisee
Additional Funds - 3 Months $6,000 - $10,000
Total $131,558 - $160,898

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Number of units

2024
Franchised units

92

141

119

Company-owned units

9

10

13

Total units

101

151

132

Franchise Disclosure Document

Training 

The franchisor offers an extensive initial training program structured in several phases:

Phase One: Taking place at least two weeks prior to the opening of the franchise, this phase lasts 3 to 5 days. It includes virtual training sessions before and after the initial phase, which are mandatory for the Designated Owner, Operating Manager, approved managers, employees, and sales staff.

Phase Two: Conducted within the first year of operation, this phase spans 2 to 4 days, as determined by the franchisor. It covers business operations, services provided, compliance with legal requirements, leadership, customer service, and marketing and sales strategies.

The franchisor may tailor the duration of the training based on the prior experience of the Designated Owner and Operating Manager. Additionally, the franchisor provides on-site opening assistance through their staff, without any training fees for this initial support. However, any subsequent on-site assistance may come with a fee.

Required Ongoing Training: The franchisor may require additional training for the Designated Owner, Operating Manager, and selected employees to cover further operational aspects. This ongoing training may include costs for compensation, travel, lodging, and living expenses for participants.

Territory Protection

The franchisor provides territory protection for its franchisees. Upon signing the Franchise Agreement, you will be assigned one or more contiguous Protected Territories. These territories are determined based on factors such as an approximate one-hour commute throughout the area and will include up to roughly 75,000 qualified single-family households.

Throughout the term of the Franchise Agreement, and as long as you remain compliant with its terms, the franchisor will not establish, nor allow a third party to establish, another Hello Garage business within your Protected Territory, except under certain specified conditions.

While this protection ensures no additional Hello Garage businesses are placed within your designated area, it does not grant you exclusive territory rights. You may still encounter competition from other franchisees, franchisor-owned outlets, or other distribution channels or competitive brands controlled by the franchisor.

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