Groovy Hues franchise unit economics
Groovy Hues franchisees run painting businesses that sell residential and commercial painting by estimate, with powerwashing as an option, in a Protected Territory.
Groovy Hues franchise at a glance
The 2026 FDD from HPB Painting LLC reports 2025 gross sales, the residential and commercial split, estimates, close ratio and job size for the 9 franchisees open all year.
Groovy Hues’ 9 reporting franchisees averaged $1,030,828 of gross sales in 2025, with a median of $595,969, according to Item 19 of Groovy Hues’ 2026 FDD, issued 28 April 2026. The 9 in that group are 39%* of Groovy Hues’ 23 franchisees. Fees paid to Groovy Hues come to about 7.92%* of sales.
- A Groovy Hues franchise for one Protected Territory costs $156,829 to $204,001 to open, including a $59,500 initial franchise fee, according to the 2026 FDD.
- Groovy Hues charges a royalty of 6% of gross revenues up to $1,000,000 a calendar year, 5% to $3,000,000 and 4% above, with a $500 monthly minimum per territory from the first anniversary.
- A Groovy Hues franchisee must also spend the greater of $2,000 a month or 5% of monthly gross revenues collected on local advertising, after $20,000 in the first 90 days.
- Groovy Hues’s 9 reporting franchisees averaged $1,030,828 of gross sales in 2025, with a median of $595,969; 2 of the 9 (22.2%) exceeded the average.
- The highest of the 9 Groovy Hues franchisees had $3,930,000 of gross sales, 42.4%* of the $9,277,448 total.
- Groovy Hues had 78 franchised territories and no company-owned outlets at the end of 2025, up from 46 a year earlier.
These figures come from Groovy Hues's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors. The 42.4% share of the highest franchisee, and the 7.92% share paid to the franchisor and its affiliates at the $1,030,828 average (one set of fixed charges).
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Talk to Averan → Averan Groovy Hues Conversion Package →- The highest-grossing franchisee had $3,930,000 of the $9,277,448 total, or 42.4%*. Without it, the other eight averaged $668,431*. The filed average for all nine is $1,030,828 and the median is $595,969.
- The top third averaged $2,049,505 and the bottom third $372,920, or 5.5 times*. Each third holds three franchisees. The top third held 13 territories and the middle and bottom thirds 10 each.
- Commercial jobs were $1,544,628 of gross sales, 16.6% of the total. Residential jobs were $7,732,820, or 83.4%.
- The average franchisee wrote 443 estimates, closed 43.4% and averaged $4,677 a job. Close ratio ranged from 24.5% to 55.0% and average job size from $2,537 to $6,877 across the nine.
- 101 territories opened from 2023 to 2025 and 23 were terminated*. Eighteen of the terminations were in 2024, when 31 territories were open at the start of the year. There were no transfers, non-renewals or reacquisitions.
Average gross sales
How much does a Groovy Hues franchise make?
| Group | Franchisees | Territories | Total | Average | Median | Highest | Lowest | Above the group average |
|---|---|---|---|---|---|---|---|---|
| Top third | 3 | 13 | $6,148,516 | $2,049,505 | $1,367,258 | $3,930,000 | $851,258 | 1 (33.3%) |
| Middle third | 3 | 10 | $2,010,173 | $670,058 | $595,969 | $847,177 | $567,027 | 1 (33.3%) |
| Bottom third | 3 | 10 | $1,118,760 | $372,920 | $363,913 | $428,781 | $326,066 | 1 (33.3%) |
| All 9 | 9 | 33 | $9,277,448 | $1,030,828 | $595,969 | $3,930,000 | $326,066 | 2 (22.2%) |
As printed in Item 19. Gross sales are franchisee-reported through the brand’s software and do not follow generally accepted accounting principles. Figures are per franchisee, and every reporting franchisee held more than one territory.
The 9 Groovy Hues franchisees open for all of 2025 averaged $1,030,828 of gross sales, and the median was $595,969. Two of the nine, 22.2%, exceeded the average.
The 9 are a subset of the system. At the end of 2025 there were 23 franchisees across 78 Protected Territories. Item 19 leaves out 14 franchisees because they were not open for the whole year; they held 45 territories*.
The highest franchisee had $3,930,000 of gross sales, 42.4% of the $9,277,448 total*. The other eight averaged $668,431*. The lowest had $326,066.
Item 19 does not disclose any cost, expense or profit information. It reports gross sales, the residential and commercial split, estimates, close ratio and average job size.
Jobs and estimates
Residential and commercial sales, estimates and job size, 2025
| Measure | Average | Median | Highest | Lowest | Above the average |
|---|---|---|---|---|---|
| Total estimates | 443 | 420 | 1046 | 196 | 2 (22.2%) |
| Close ratio | 43.4% | 44.6% | 55.0% | 24.5% | 5 (55.6%) |
| Average job size | $4,677 | $4,197 | $6,877 | $2,537 | 4 (44.4%) |
As printed in Item 19. Close ratio is the share of estimates written that turned into invoices.
Residential jobs were $7,732,820 of 2025 gross sales, 83.4%, and commercial jobs $1,544,628, 16.6%. These are totals for the 9 reporting franchisees (Item 19, Table 2).
The average franchisee wrote 443 estimates and the median 420. The highest wrote 1,046 and the lowest 196.
The average close ratio was 43.4% and the median 44.6%. Five of the nine closed more than the average.
Average job size was $4,677, with a median of $4,197. The range was $2,537 to $6,877.
Spread of results
Gross sales per territory, by third
| Group | Territories | Total gross sales | Per territory |
|---|---|---|---|
| Top third | 13 | $6,148,516 | $472,963* |
| Middle third | 10 | $2,010,173 | $201,017* |
| Bottom third | 10 | $1,118,760 | $111,876* |
| All 9 | 33 | $9,277,448 | $281,135* |
Totals and territory counts as printed in Item 19, Table 1. Per-territory figures are Averan calculations: each group’s total divided by its territories.
Each third of the reporting group holds three franchisees. So the highest, median and lowest in each third are its three members, and they add to the third’s total. Across all nine, gross sales ran from $326,066 to $3,930,000.
The top third held 13 territories and averaged $2,049,505 a franchisee. The bottom third held 10 and averaged $372,920. That is 5.5 times*.
Per territory, the top third had $472,963 of gross sales* and the bottom third $111,876*. Across all 33 territories the figure was $281,135*.
The three thirds add to $9,277,449*, one dollar more than the printed system total of $9,277,448. This page uses the printed figures.
Brand charges
Brand charges
| Charge | Rate in the FDD | At $1,030,828 | At $595,969 |
|---|---|---|---|
| Royalty | 6% of gross revenues to $1,000,000 a calendar year, 5% to $3,000,000, 4% above; minimum $500 a month per territory from the first anniversary | $61,541* | $35,758* |
| Brand Fund | Up to 3% of gross revenues collected; currently not assessed | $0 | $0 |
| Technology Fee | $140 a month | $1,680* | $1,680* |
| CRM Fee | $452 a month | $5,424* | $5,424* |
| Accounting Services Fee | $499 a month | $5,988* | $5,988* |
| Digital Management Fee | $500 a month | $6,000* | $6,000* |
| Annual conference | $1,000 a person | $1,000 | $1,000 |
| Paid to the franchisor and its affiliates, subtotal | $81,633 (7.92%)* | $55,850 (9.37%)* | |
| Special Software Fee, designated vendor | $300 a month | $3,600* | $3,600* |
| Contact Center Fee, designated vendor | $200 to $300 a month | $3,600* | $3,600* |
| Accounting software and payroll, designated vendors | $89 a month software and $77 a month payroll | $1,992* | $1,992* |
| Local advertising minimum | Greater of $2,000 a month or 5% of monthly gross revenues collected | $51,541* | $29,798* |
Rates from Item 6. Dollar amounts and percentages are Averan calculations for one set of fixed charges, one conference attendee and the contact center at $300 a month. The royalty uses the calendar-year tiers. Reporting franchisees hold several territories each; the minimum royalty applies per territory, and the per-territory treatment of other charges is not modeled here.
At the $1,030,828 average, the royalty and fixed charges paid to the franchisor and its affiliates come to $81,633, or 7.92% of gross sales*. Designated vendors take a further $9,192 and the local advertising minimum is $51,541*. At the $595,969 median the charges paid to the franchisor and its affiliates are 9.37%*.
The royalty rate steps down with calendar year-to-date gross revenues and resets each January. A franchisee with several franchise agreements has the tiers calculated on the combined gross revenues of all its territories.
The minimum royalty is $500 a month per territory, or $6,000 a year*. At the 6% rate the percentage royalty passes the minimum at $100,000 of gross revenues a territory*. From the sixth year the franchisor may raise the minimum by up to 10% a year.
Local advertising is the greater of $2,000 a month or 5% of monthly gross revenues collected, after $20,000 in the first 90 days. At least $2,000 a month must go through the franchisor’s affiliate or designated vendor, and any shortfall may be payable to the franchisor.
A Brand Fund of up to 3% may be set up, but it is not assessed today. If it starts, the Brand Fund and royalty together may not exceed the royalty rate in force immediately before.
Cost to open
Cost to open
| Line | Low | High |
|---|---|---|
| Initial franchise fee | $59,500 | $59,500 |
| Additional funds, 90 days | $20,000 | $40,000 |
| Initial marketing and local advertising | $20,000 | $20,000 |
| Brand Marketing Fee | $15,500 | $15,500 |
| Vehicles (deposit and first 3 months) | $12,884 | $14,816 |
| Professional fees | $1,000 | $10,500 |
| Insurance | $3,000 | $7,500 |
| Opening Package | $5,430 | $6,520 |
| Licenses, certificates and permits | $0 | $5,000 |
| ZeePartnerships Fee | $5,000 | $5,000 |
| Tuition Fee | $4,995 | $4,995 |
| Travel and living while training | $1,500 | $3,500 |
| Rent and utilities, 90 days | $200 | $2,500 |
| Accounting Services Fee | $2,435 | $2,435 |
| Contact Center Fee | $850 | $1,660 |
| Digital Management Fee | $1,500 | $1,500 |
| CRM Fee | $1,356 | $1,356 |
| Special Software Fee | $900 | $900 |
| Technology Fee | $420 | $420 |
| Dues and subscriptions | $399 | $399 |
| Total | $156,829 | $204,001 |
As printed in Item 7, ordered by the high estimate. The low estimate for licenses is printed as a dash. The listed low amounts add to $156,869*, $40 more than the printed low total; this page shows the printed total.
One Groovy Hues business in one Protected Territory costs $156,829 to $204,001 to open, of which $84,995 is paid to the franchisor or its affiliates before opening. That amount is the $59,500 franchise fee, the $15,500 Brand Marketing Fee, the $4,995 Tuition Fee and the $5,000 ZeePartnerships Fee.
The initial franchise fee rises with the number of territories bought at once. One territory of about 200,000 people costs $59,500, two $99,500, three $134,500, four $164,500 and five $194,500. Population above those totals costs $0.30 a person.
Two to three territories cost $206,829 to $299,001 in total, and four to five cost $281,829 to $379,001. The Brand Marketing Fee, Tuition Fee and ZeePartnerships Fee are paid once however many territories are bought.
The vehicle line covers a 20% deposit and three monthly payments on one wrapped sales truck. Item 7 puts the truck at $52,050 to $59,857.50, financed over 60 months at 7.00%.
The additional funds line covers three months of wages, including a general manager, and excludes any owner’s draw or salary. Item 11 estimates 150 to 180 days from signing to opening, and the franchise agreement requires opening within 180 days.
Locations
Locations, 2023 to 2025
| Year | Start | Opened | Terminated | Not renewed | Reacquired | Ceased other | End | Transfers |
|---|---|---|---|---|---|---|---|---|
| 2023 | 0 | 34 | 3 | 0 | 0 | 0 | 31 | 0 |
| 2024 | 31 | 33 | 18 | 0 | 0 | 0 | 46 | 0 |
| 2025 | 46 | 34 | 2 | 0 | 0 | 0 | 78 | 0 |
As printed in Item 20, where each Protected Territory counts as one outlet, so one franchisee can appear several times. Groovy Hues had no company-owned or affiliate-owned outlets in any year. Thirty-six franchise agreements were signed but not opened at the end of 2025, and the franchisor projects 18 new franchised outlets in 2026.
Groovy Hues ended 2025 with 78 franchised territories, up 32 from 46. Thirty-four opened and 2 were terminated, both in Texas.
Over the three years 101 territories opened and 23 were terminated*. Eighteen terminations were in 2024: 12 in Texas, 3 in Colorado and 3 in Tennessee. Item 20 shows no transfers, non-renewals, reacquisitions or other closures.
Pennsylvania held the most territories at the end of 2025, with 18, followed by Texas with 14. Florida added 8 in 2025, and Florida has 12 more signed but not opened.
HPB Painting LLC began franchising in August 2022 and reported a net loss of $490,414 for 2025. Its audited balance sheet shows a members’ deficit of $542,169 at December 31, 2025. Affiliates at the same Omaha address franchise Bumble Bee Blinds, Gatsby Glass, Blingle! and Heroes Lawn Care.
Questions we get asked
Questions owners ask
How much does a Groovy Hues franchise cost to open?
Item 7 of the 2026 FDD puts one business in one Protected Territory at $156,829 to $204,001. That includes the $59,500 initial franchise fee, $20,000 of initial marketing, $15,500 for brand marketing and $20,000 to $40,000 of additional funds for 90 days. Two to three territories cost $206,829 to $299,001 and four to five cost $281,829 to $379,001.
What fees does a Groovy Hues franchisee pay?
A royalty of 6% of gross revenues to $1,000,000 a calendar year, 5% to $3,000,000 and 4% above, with a $500 monthly minimum per territory from the first anniversary. Local advertising is the greater of $2,000 a month or 5% of gross revenues collected. Fixed monthly charges include technology, CRM, accounting, digital management, special software and contact center fees. At the $1,030,828 average, Averan puts the charges paid to the franchisor and its affiliates at 7.92% of gross sales*.
How much revenue does a Groovy Hues franchise make?
The 9 franchisees open for all of 2025 averaged $1,030,828 of gross sales, with a median of $595,969. The highest had $3,930,000 and the lowest $326,066. Two of the nine exceeded the average.
Does the Groovy Hues FDD show profit?
No. Item 19 states that it does not disclose any cost, expense or profit information. It reports gross sales, the residential and commercial split, estimates, close ratio and average job size.
How many Groovy Hues locations are there?
Item 20 counts each Protected Territory as an outlet and reports 78 franchised territories at the end of 2025, up from 46, with no company-owned outlets. Item 19 says those 78 territories belonged to 23 franchisees. Thirty-six more franchise agreements were signed but not opened.
How large is a Groovy Hues territory?
Each Protected Territory holds about 200,000 people. The initial franchise fee falls for each further territory bought at once, from $59,500 for the first to $30,000 each for the fourth and fifth.
Questions worth putting to Groovy Hues
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does Groovy Hues see in its highest-selling locations, such as territory, years open and staffing?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Groovy Hues locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. It also checks whether you are ready to open another one. It is free and it runs in your browser.
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Other brands in the Painting guide: 360 Painting · CertaPro Painters · Five Star Painting · Fresh Coat · Go Painting · WOW 1 DAY PAINTING.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from
Every figure here comes from HPB Painting LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Groovy Hues is a trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: HPB Painting LLC, 2026 Franchise Disclosure Document, issued 28 April 2026.