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

• Section I – Background information on the Gotcha Covered franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Gotcha Covered franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Gotcha Covered franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned Gotcha Covered outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Gotcha Covered’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 actual, average, median, highest, and lowest gross sales for the 75 franchised Gotcha Covered Businesses that operate in the United States and had been in operation for at least one year as of December 31, 2020 (by quartile)

Section I – Background Information

16 Things You Need to Know About the Gotcha Covered Franchise

Achieves Record Growth in 2020

1.  In early March 2021, Gotcha Covered said that it saw record growth for its franchise system and sales in 2020 while overcoming challenges and obstacles throughout the year. Gotcha Covered opened 27 new franchises in 2020 while existing franchise owners saw their revenue amounts grow.

2.  Paul Linenberg, president of Gotcha Covered, said, “At Gotcha Covered, we offer an end-to-end customer experience to ensure we address their wants and needs. Our consultative services set us apart from the competition because we take the time to know the desire of our customers. Our clients have given us a 4.9 out of 5-star rating. That rating reflects positively on us as a company, but the fact our franchise owners were also able to thrive during volatile times shows that Gotcha Covered has the tools to survive and be successful despite the business climate.”

3.  Gotcha Covered expected similar growth in 2021, crediting both their careful franchisee selection process and flexible business models as strategies that helped them add 27 new franchises in 2020. Offering home-based business models in addition to showroom models has afforded the brand a distinct advantage in today’s climate, allowing franchisees to operate safely at high levels of success.

4.  Linenberg added, “To be a Gotcha Covered franchise owner, there is no specific previous experience required. There are two basic things that you need: a drive to be a successful business owner and the ability to build relationships. After that, the rest falls on us. We provide first class training, marketing support and systems to help our franchise owners reach their potential. We look forward to many more joining the Gotcha Covered family throughout 2021.”

Joins the Fight Against Cancer

5. At the end of October 2021, Gotcha Covered announced that it was continuing its annual commitment to supporting two leading cancer awareness organizations. Ovarian Cancer Canada is Canada’s only national charity dedicated to overcoming ovarian cancer. The Breast Cancer Research Foundation is the highest-rated breast cancer organization in the U.S. and provides funding for cancer research worldwide.

6.  Paul Linenberg, president of Gotcha Covered, said, “At Gotcha Covered, we want to show our clients that we care about more than simply selling our services. We are dedicated to them on a daily basis and want to shed light on the ongoing issues they face daily. No matter who you are, it’s likely you know someone that has been affected by breast or ovarian cancer. Based on breast and ovarian cancer statistics, 1 in 8 women will develop invasive breast cancer over the course of her lifetime. About 21,410 women will receive a new diagnosis of ovarian cancer by the end of 2021. These are things we need to be discussing, and our awareness campaigns aim to start the conversation.”

7.  Attention to breast cancer is just one of several Gotcha Covered quarterly campaign topics focused on raising awareness for important issues across the nation. In November, Gotcha Covered dedicated its efforts to veterans in the United States and Canada by focusing on the Fisher House Foundation and True Patriot Love. The Fisher House Foundation provides a home away from home free of charge for families of patients receiving care at military and VA medical centers in the U.S. True Patriot Love honors the sacrifices of members of the Canadian Armed Forces and provides resources to meet the needs of veterans and their families.

Continues Expansion in Pennsylvania with New Location in Philadelphia

8.  In mid-December 2021, Gotcha Covered said that it was continuing to build a foundation in Pennsylvania with the opening of Gotcha Covered of Bucks County. The new home-based center is owned and operated by Drew Robinson. With premium end-to-end consultative services, this business will provide the best in soft and hard window treatments to homeowners in Bucks and Philadelphia Counties while offering a variety of blinds, draperies, smart solutions, and much more.

9.  According to Paul Linenberg, president of Gotcha Covered, “This is our fourth center in Pennsylvania. The Gotcha Covered brand always takes pride in delivering an excellent customer experience, and we believe Drew will be a great addition to our franchise family. We know he will do whatever it takes to bring top-notch service to the residents of Bucks and Philadelphia Counties.”

10.  At 28 years old, Robinson’s professional experience is based in sales and customer service. After working for several different tech start-ups in Los Angeles, he decided to move back to the East Coast to be closer to his family. Prior to the COVID-19 pandemic, Robinson was working in the healthcare industry as a service coordinator. Afterward, he took a step back to re-evaluate his goals and decided to pursue his dream of business ownership.

11.  Robinson said, “I found out about Gotcha Covered while investigating several different franchise options. I knew I wanted to build my own company but was lost in the form and direction I should take. I worked with a fantastic franchise consultant who helped me establish my goals as an entrepreneur and introduced me to the wonderful people at Gotcha Covered. It was the people behind the name that really won me over. The consistency and professionalism stood out with the Gotcha Covered team. It became clear these were the types of people I could rely on for follow-up and support. Coming from customer service that was huge for me.”

12.  Robinson’s overall vision for his franchise is to prove that Gotcha Covered can be successful in his area, expand his service territory, and help other franchisees recreate that success.

Company History

13.  Gotcha Covered was founded in 1991 as a company that specializes in selling and installing window coverings such as blinds, shutters, shades, and custom draperies. The company uses expert design consultants to help clients find exactly what they’re looking for. Gotcha Covered also provides installation services.

14.  In the early 2000s, the founders of Gotcha Covered reached out to Paul Linenberg – who is now president of Gotcha Covered – and his company V2K. Linenberg’s company developed software programs to standardize procedures associated with the sale and manufacture of window covering products. At the time, Gotcha Covered’s owners said that the business had grown too big for them and asked if V2K was interested in acquiring the company.

15.  Linenberg and his business partners agreed and V2K merged with Gotcha Covered. Following the acquisition, Gotcha Covered started franchising and there are now locations around the United States and Canada.

Entrepreneur’s Franchise 500

16.  Gotcha Covered ranked No. 284 on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of Gotcha Covered franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Detailed information on Gotcha Covered’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  79
• Outlets at the End of the Year:  93
• Net Change:  +14

2019

• Outlets at the Start of the Year:  93
• Outlets at the End of the Year:  107
• Net Change:  +14

2020

• Outlets at the Start of the Year:  107
• Outlets at the End of the Year:  116
• Net Change:  +9

Company-Owned

2018

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

2019

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

2020

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

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• As of December 31, 2020, Gotcha Covered had 103 franchised Gotcha Covered Businesses operating in the United States, 13 franchised Gotcha Covered Businesses operating in Canada, and no company-owned Gotcha Covered Businesses.

• The information in the tables below is a historical financial performance representation for the 75 franchised Gotcha Covered Businesses that operate in the United States and had been in operation for at least one year as of December 31, 2020 (“Reporting Group”) for the 2020 calendar year (“Reporting Period”).

• Gotcha Covered excluded Canadian Gotcha Covered Businesses, which are not offered under the Franchise Disclosure Document. Gotcha Covered also excluded six Gotcha Covered Businesses that closed during the Reporting Period.

• The Reporting Group was divided into four subgroups based on Gross Sales during the Reporting Period: 1) highest quartile; 2) second highest quartile; 3) second lowest quartile; and 4) lowest quartile. Gotcha Covered has included the average, mean, minimum, and maximum Gross Sales of each subgroup in the tables below.

• The financial information provided in this Item 19 is based on the information submitted by Gotcha Covered franchisees. Gotcha Covered has not audited these amounts, but has no reason to doubt the accuracy of the information.

Part 1 – Gross Sales for the Highest Quartile in the Reporting Group During the Reporting Period

• Franchisee 1*:  $1,916,152
• Franchisee 2*:  $1,514,455
• Franchisee 3:  $1,275,325
• Franchisee 4*:  $1,264,205
• Franchisee 5:  $1,258,831
• Franchisee 6*:  $1,158,844
• Franchisee 7*:  $1,147,973
• Franchisee 8*:  $1,100,034
• Franchisee 9:  $1,000,710
• Franchisee 10:  $930,495
• Franchisee 11*:  $805,066
• Franchisee 12:  $794,517
• Franchisee 13*:  $677,294
• Franchisee 14:  $580,328
• Franchisee 15:  $514,200
• Franchisee 16:  $479,840
• Franchisee 17:  $474,802
• Franchisee 18:  $469,038
• Franchisee 19:  $456,912

• Average:  $937,843
• Median:  $930,495
• Minimum:  $456,912
• Maximum:  $1,916,152

• Of the 19 franchisees in this subgroup, nine franchisees (47.3%) met or exceeded the average.

• Eight of the 19 franchisees in this group operate their Gotcha Covered Businesses out of a showroom, designated with an (*).

Part 2 – Gross Sales for the Second Highest Quartile in the Reporting Group During the Reporting Period

• Franchisee 20:  $433,169
• Franchisee 21:  $428,886
• Franchisee 22:  $400,081
• Franchisee 23:  $366,403
• Franchisee 24:  $358,744
• Franchisee 25:  $355,720
• Franchisee 26:  $354,673
• Franchisee 27:  $354,462
• Franchisee 28:  $354,091
• Franchisee 29:  $345,449
• Franchisee 30:  $336,234
• Franchisee 31:  $334,065
• Franchisee 32:  $328,550
• Franchisee 33:  $320,733
• Franchisee 34:  $313,804
• Franchisee 35:  $311,498
• Franchisee 36:  $311,482
• Franchisee 37:  $293,535
• Franchisee 38:  $234,197

• Average:  $343,988
• Median:  $345,449
• Minimum:  $234,197
• Maximum:  $433,169

• Of the 19 franchisees in this subgroup, 10 franchisees (52.6%) met or exceeded the average.

Part 3 – Gross Sales for the Second Lowest Quartile in the Reporting Group During the Reporting Period

• Franchisee 39:  $233,012
• Franchisee 40:  $232,519
• Franchisee 41:  $228,040
• Franchisee 42:  $226,454
• Franchisee 43:  $226,322
• Franchisee 44:  $223,605
• Franchisee 45:  $218,258
• Franchisee 46:  $209,567
• Franchisee 47:  $209,513
• Franchisee 48:  $207,225
• Franchisee 49:  $203,070
• Franchisee 50:  $193,371
• Franchisee 51:  $188,774
• Franchisee 52:  $186,728
• Franchisee 53:  $174,482
• Franchisee 54:  $165,361
• Franchisee 55:  $158,682
• Franchisee 56:  $158,513
• Franchisee 57:  $157,322

• Average $200,043
• Median $207,225
• Minimum $157,322
• Maximum $233,012

• Of the 19 franchisees in this subgroup, 11 franchisees (57.9%) met or exceeded the average.

Part 4 – Gross Sales for the Lowest Quartile in the Reporting Group During the Reporting Period

• Franchisee 58:  $149,342
• Franchisee 59:  $145,860
• Franchisee 60:  $141,853
• Franchisee 61:  $124,069
• Franchisee 62:  $120,981
• Franchisee 63:  $106,842
• Franchisee 64:  $105,066
• Franchisee 65:  $102,182
• Franchisee 66:  $99,553
• Franchisee 67:  $94,358
• Franchisee 68:  $80,181
• Franchisee 69:  $77,743
• Franchisee 70:  $74,034
• Franchisee 71:  $64,328
• Franchisee 72:  $60,485
• Franchisee 73:  $49,456
• Franchisee 74:  $47,179
• Franchisee 75:  $18,154

• Average:  $92,315
• Median:  $96,955.50
• Minimum:  $18,154
• Maximum:  $149,342

• Of the 18 franchisees in this subgroup, 10 franchisees (52.6%) met or exceeded the average.

• For purposes of this Item 19, “Gross Sales” means the total revenue derived from the sale of goods or services, whether or not sold or performed at or from the Gotcha Covered Business, and whether received in cash, check, credit card, coupon, in services in kind, from barter and/or exchange, on credit (whether or not payment is received) or otherwise, and including all proceeds from any business interruption insurance, less sales tax, discounts, allowances, and returns.

• The financial performance representation figures in the tables above do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

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

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