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Gatsby Glass

HPB Glass LLC
https://www.gatsbyglass.com
1-800-490-8991
2525 N 117th Avenue, Third Floor, Omaha, NE 68164

How much does Gatsby Glass cost?

Initial Investment Range

$195,691 to $430,716

Franchise Fee

$85,787 to $220,787

We offer qualified individuals the right to operate a business that specializes in commercial and residential glass installation products and services under the "Gatsby Glass" mark.

Enjoy our partial free risk analysis below

Unlock the full risk analysis to access 9 more categories covering 100+ risks.

Gatsby Glass April 29, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 22, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
5
3
2

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor's audited financial statements show significant and recurring net losses for the past three fiscal years and a substantial members' deficit of over $1.5 million in 2024. Although a majority member has committed to provide funding through May 2026, this financial weakness raises questions about the company's long-term ability to support you and the franchise system, potentially making this a riskier investment.

Potential Mitigations

  • A franchise accountant must conduct a thorough review of the audited financial statements, including all notes, to assess the company's viability.
  • Discuss with a business advisor the implications of the franchisor's recurring losses on its capacity to provide promised support and grow the brand.
  • Your attorney should examine the nature and enforceability of the majority member's commitment to provide funding.
Citations: Item 21, FDD Exhibit E

High Franchisee Turnover

High Risk

Explanation

The FDD discloses a very high rate of franchisee turnover. In 2024, there were 32 terminations from a starting base of 50 franchised outlets. This high number of franchisees leaving the system is a critical indicator of potential systemic problems, which could include franchisee unprofitability, dissatisfaction with franchisor support, or other issues. This may significantly increase your own risk of business failure.

Potential Mitigations

  • Engaging a business advisor to help you contact a significant number of former franchisees listed in Item 20 is essential to understand why they left.
  • It is crucial to have your accountant analyze the turnover data in the context of the system's overall growth and financial performance.
  • Your attorney can help you formulate specific questions for the franchisor regarding the high rate of terminations.
Citations: Item 20, Table No. 3

Rapid System Growth

High Risk

Explanation

Item 20 data shows the system has grown from 9 to 94 outlets in just two years. This rapid expansion, combined with the franchisor's significant net losses and high franchisee turnover, suggests its resources may be stretched thin. This could compromise the quality and availability of the training, site selection assistance, and ongoing support you receive, potentially impacting your operational success.

Potential Mitigations

  • Your business advisor should help you assess whether the franchisor's support infrastructure is capable of handling such rapid growth.
  • In discussions with current franchisees, you should inquire specifically about the recent quality and responsiveness of franchisor support.
  • An accountant can analyze the franchisor's financials to determine if they have allocated sufficient resources to support their expansion.
Citations: Item 20, Table No. 1; Item 21, FDD Exhibit E

New/Unproven Franchise System

High Risk

Explanation

HPB Glass LLC (HPB Glass) is a new franchisor, having started franchising in late 2020 and forming the current company in 2022. The FDD's 'Special Risks' section explicitly highlights the company's 'Short Operating History.' Investing in a new, unproven system carries higher risk as the business model, brand recognition, and support systems are not yet well-established. Your success depends on the viability of a concept with a limited track record.

Potential Mitigations

  • A thorough investigation of the management team's prior experience in both franchising and the glass installation industry is recommended with your business advisor.
  • It is crucial to speak with the earliest-adopting franchisees to learn about their experiences and the evolution of the system.
  • Your attorney may be able to negotiate more franchisee-favorable terms to compensate for the higher risk associated with a new system.
Citations: Item 1, Item 20, FDD pages iv, v

Possible Fad Business

Low Risk

Explanation

The business operates in the residential and commercial glass installation industry. While this is an established market, you should consider if the specific services offered by Gatsby Glass have long-term, sustainable demand. Assessing whether the business model is resilient to economic fluctuations or dependent on specific housing or construction trends is important for long-term viability, as your contractual obligations will continue regardless of market shifts.

Potential Mitigations

  • Working with a business advisor to research the long-term outlook for the glass installation market in your specific territory is advisable.
  • Evaluating the franchisor's plans for innovation and adaptation to changing market conditions can provide insight into future stability.
  • Your financial advisor can help you assess the business model's resilience to economic downturns.
Citations: Item 1

Inexperienced Management

Medium Risk

Explanation

Item 2 shows that the key executives at HPB Glass hold numerous, concurrent leadership roles across a wide portfolio of other franchise brands under the 'Horsepower Brands' umbrella. While they may have industry experience, managing many different systems simultaneously could dilute their focus and the resources available to support the Gatsby Glass brand specifically. This may impact the quality of guidance and strategic direction you receive.

Potential Mitigations

  • You should ask the franchisor direct questions about how management allocates its time and resources among the various brands.
  • Speaking with current Gatsby Glass franchisees about their direct experiences with the leadership team's focus and support is crucial.
  • A business advisor can help you evaluate the potential risks of a management team overseeing a large and diverse portfolio of franchise concepts.
Citations: Item 1, Item 2

Private Equity Ownership

Medium Risk

Explanation

The franchisor is part of a large portfolio of brands under the 'Horsepower Brands' umbrella, which appears to function like a private equity holding company. This structure could lead to decisions that prioritize investor returns over the long-term health of franchisees. This may manifest as pressure to use specific affiliates for supplies, frequent fee increases, or a sale of the entire system, potentially to a new owner with different priorities.

Potential Mitigations

  • It is important to research the track record of Horsepower Brands and its management with its other franchise systems.
  • Consulting your attorney is critical to understand the implications of the franchisor's right to sell or assign the franchise system.
  • Speaking with franchisees from other Horsepower Brands concepts could provide valuable insight into the ownership group's operational philosophy.
Citations: Item 1, Item 8, Item 17

Non-Disclosure of Parent Company

Medium Risk

Explanation

The FDD discloses a parent company, JEZ Investments LLC, and a complex web of affiliates under the 'Horsepower Brands' and 'HPB' names. The franchisor itself has a significant net deficit and relies on funding from its majority member. However, financial statements for the parent company are not provided. This makes it difficult to fully assess the overall financial strength and stability of the entire organization that underpins your franchise.

Potential Mitigations

  • Your accountant should carefully review the extensive list of affiliates and related-party transactions disclosed in the FDD.
  • It is advisable to ask the franchisor for more information about the financial health of the parent company.
  • Your attorney should analyze the legal relationship between the franchisor and its parent to understand where ultimate control and liability may reside.
Citations: Item 1, Item 21

Predecessor History Issues

Low Risk

Explanation

HPB Glass LLC has a predecessor, BJSD Acquisition, LLC, from which it acquired assets in March 2022. While the FDD provides some information, it's important to understand that the operational history and performance of the system under this predecessor could contain relevant information about the business model's historical challenges or successes. A complete picture of the brand's lineage helps in assessing its stability.

Potential Mitigations

  • You should discuss the transition from the predecessor with the franchisor to understand what changes were made and why.
  • If any franchisees from the predecessor era are still in the system, a discussion with them could provide valuable historical context.
  • Your attorney can help you assess if the disclosures regarding the predecessor are complete and address any potential inherited liabilities.
Citations: Item 1

Pattern of Litigation

High Risk

Explanation

Item 3 discloses two pending lawsuits filed by franchisees against other Horsepower Brands affiliates (HPB Lawn Care and HPB Foam) managed by the same key executives as Gatsby Glass. The allegations include serious claims like fraud, misrepresentation, and breach of contract. A pattern of such litigation within the parent organization, even if not against HPB Glass directly, is a significant warning sign about the franchisor's business practices and potential for disputes.

Potential Mitigations

  • A franchise attorney must carefully review the details of these lawsuits and explain their potential implications for you.
  • You should consider this pattern of litigation as a major red flag regarding the corporate culture and risk of future disputes.
  • Engaging a business advisor to discreetly inquire about these lawsuits when speaking with current and former franchisees is recommended.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
5
5
5

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
4
5
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
7
6
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
4
1
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
4
2
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
1
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
5
6
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
8
8
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.