In this review, you will explore the financial disclosures, outlet growth history, fee structures, and financial performance representations for the Gotcha Covered franchise system based on the company’s Franchise Disclosure Document (FDD) dated April 8, 2026.
- Section I – Estimated initial investment (franchise costs) for a Gotcha Covered franchise, based on Item 7 of the company’s 2026 FDD
- Section II – Initial franchise fee, royalty fee, brand fund, technology fee, and ongoing fees for a Gotcha Covered franchise, based on Items 5 and 6 of the company’s 2026 FDD
- Section III – Number of franchised and company-owned Gotcha Covered outlets at the start and end of the year for 2023, 2024, and 2025, based on Item 20 of the company’s 2026 FDD
- Section IV – System developments and industry growth trends
- Section V – Presentation and analysis of Gotcha Covered’s financial performance representations, based on Item 19 of the company’s 2026 FDD
Section I – Gotcha Covered Franchise Costs
Estimated initial investment for a standard single Gotcha Covered franchise territory, based on Item 7 of the 2026 FDD:
- Initial Franchise Fee: $69,900
- Travel & Living Expenses During Training: $1,500 to $2,500
- Computer Systems & Software Setup: $1,500 to $3,500
- Sample Kits, Displays, & Sales Materials: $3,500 to $6,500
- Vehicle Lease / Wrap / Signage: $1,500 to $4,500
- Licenses, Permits, & Entity Formation: $500 to $1,500
- Insurance Premiums (3 Months): $1,200 to $3,000
- Pre-Opening Marketing & Launch Advertising: $6,000 to $10,000
- Additional Funds (3 Months): $12,000 to $20,000
- Total Estimated Initial Investment: $97,600 to $122,400 (Home-based mobile business model; no commercial retail lease required).
Section II – Gotcha Covered’s Initial Fees, Royalty Fees, and Marketing Fees
Fee disclosures based on Items 5 and 6 of the 2026 FDD:
- Initial Franchise Fee: $69,900 for a single territory.
- Royalty Fee: 5% of Gross Sales (or a minimum monthly threshold after initial ramp-up period).
- National Marketing Fund Contribution: 1% to 2% of Gross Sales.
- Technology Fee: $250 to $450 per month for custom design, estimation software, CRM, and corporate email hosting.
- Local Advertising Requirement: Minimum of $1,500 to $2,500 per month dedicated to local B2C digital and direct marketing within the territory.
- Transfer Fee: $10,000 or 10% of the sale price, whichever is greater.
- Veteran Discount: 10% discount off the initial franchise fee for qualified military veterans.
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Section III – Number of Franchised and Company-Owned Outlets
Unit count and system history based on Item 20 of the 2026 FDD:
Franchised Outlets
- 2023: Outlets at Start of Year: 148 | Outlets at End of Year: 159 | Net Change: +11
- 2024: Outlets at Start of Year: 159 | Outlets at End of Year: 172 | Net Change: +13
- 2025: Outlets at Start of Year: 172 | Outlets at End of Year: 185 | Net Change: +13
Company-Owned Outlets
- 2023: Outlets at Start of Year: 0 | Outlets at End of Year: 0 | Net Change: 0
- 2024: Outlets at Start of Year: 0 | Outlets at End of Year: 0 | Net Change: 0
- 2025: Outlets at Start of Year: 0 | Outlets at End of Year: 0 | Net Change: 0
Total System Outlets
- 2023: Outlets at Start of Year: 148 | Outlets at End of Year: 159 | Net Change: +11
- 2024: Outlets at Start of Year: 159 | Outlets at End of Year: 172 | Net Change: +13
- 2025: Outlets at Start of Year: 172 | Outlets at End of Year: 185 | Net Change: +13
Section IV – System Developments & Industry Trends
- Five Star Franchising Network: Gotcha Covered operates under Five Star Franchising, a multi-brand platform of home service franchisors.
- Shift to Motorization & Smart Home Automation: Demand for motorized blinds and automated shades continues to drive higher average order sizes. Systems integrated with smart home platforms (such as Hunter Douglas PowerView, Alta Bliss, and Graber) allow owners to upsell high-margin tech add-ons.
- Focus on Child-Safe Cordless Solutions: Safety regulations banning corded window treatments have accelerated replacement sales for custom, cordless solutions in residential properties.
- Low-Overhead Mobile Sales Model: Franchisees operate a shop-at-home consulting model, using custom vendor partnerships (e.g., Graber, Hunter Douglas, Horizons) to fulfill orders without carrying physical product inventory.
Section V – Financial Performance Representations (Item 19, 2026 FDD)
The Item 19 disclosure in the 2026 Gotcha Covered FDD provides sales performance figures for reporting franchised units that operated continuously for the full 2025 operating year.
Performance Metrics Highlights
- Average Territory Gross Revenue: Ranging from $350,000 to $650,000+ across full-year reporting outlets.
- Top Performing Franchises: Top-quartile franchisees and multi-unit operators generate in excess of $1,000,000 to $3,000,000+ in gross annual revenues.
- Average Gross Profit Margins: Typically range between 48% and 55% on custom window treatment sales, draperies, and motorization hardware.
To learn more about the brand or verify territory availability, visit the official Gotcha Covered franchise website.
Summary and Next Steps
Gotcha Covered offers a home-based, low-overhead mobile franchise model in the custom window treatment space. With entry costs under $125k, high gross margins, and expanding demand for smart motorization and custom home decor, it provides a flexible framework for sales- and design-oriented entrepreneurs.
Real-World Reference Links