Hooters Franchise FDD, Profits & Costs (2025)
Hooters is a popular restaurant franchise that was founded in 1983 in Clearwater, Florida. It was established by six businessmen who aimed to create a fun, laid-back environment, combining craveable food, cold beer, sports on big screens, and friendly service provided by the iconic Hooters Girls.
Over the past decades, Hooters has grown into a global sensation with over 420 locations across 29 countries, and it continues to operate and franchise in the United States.
Headquartered in Atlanta, Georgia, Hooters has expanded its presence both domestically and internationally. Currently, the brand is both a franchisor and operator of more than 435 restaurants spread across 44 states and 28 countries.
Hooters differentiates itself by offering consistently good food, an entertaining environment, and a focus on community involvement, supporting causes like cancer research and various charities.
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Initial Investment
How much does it cost to start a Hooters franchise? It costs on average between $2,748,000 and $4,100,000 to start a Hooters franchised restaurant.
In comparison, Twin Peaks (another similar sports bar franchise) requires an initial investment of $1,987,000 up to $6,048,000.
Another competitor, Walk-Ons Bistreaux, requires an initial investment between $1,555,000 up to $7,056,000.
| Franchise | Initial investment |
|---|---|
| Hooters | $2,748,000 and $4,100,000 |
| Twin Peaks | $1,987,000 – $6,048,000 |
| Walk-Ons Bistreaux | $1,555,000 – $7,056,000 |
Average Revenue (AUV)
How much revenue can you make with a Hooters franchise? A Hooters franchised restaurant makes on average $3,575,000 in revenue (AUV) per year.
In comparison, here is the average revenue for the 2 closest competitors:
| Franchise | Revenue (AUV) |
|---|---|
| Hooters | $3,575,000 |
| Twin Peaks | $5,540,000 |
| Walk-Ons Bistreaux | $4,779,000 |
Frequently Asked Questions
How many Hooters locations are there?
Hooters currently operates 292 locations in the U.S., with 195 company-owned units and 97 franchised units.
What is the total investment required to open a Hooters franchise?
The total investment required to open a Hooters franchise ranges from $1 million to $3 million.
What are the ongoing fees for a Hooters franchise?
A Hooters franchise has an ongoing royalty fee of 5% of gross sales. Additionally, there is a national advertising fee ranging from 2% to 4% of gross sales.
These fees are paid on a regular basis and are used to support the overall brand and its marketing efforts, contributing to maintaining the consistency and visibility of the Hooters brand across all locations.
What are the financial requirements to become a Hooters franchisee?
To become a Hooters franchisee, the financial requirements include a minimum net worth of $2 million to $4 million. Additionally, prospective franchisees are expected to have liquid capital ranging from $500,000 to $1 million.
These financial thresholds ensure that potential owners have sufficient resources for the initial investment and ongoing operational needs of the franchise.
How much can a Hooters franchise owner expect to earn?
The average gross sales for a Hooters franchise are approximately $3.46 million per location. Assuming a 15% operating profit margin, $3.46 million yearly revenue can result in $519,000 operating profit.
Who owns Hooters?
Hooters is owned by HOA Brands, LLC, a privately held company. The brand has changed ownership over time, with its most recent acquisition led by investment groups including TriArtisan Capital Advisors and Nord Bay Capital, focusing on expanding Hooters’ global presence while maintaining its core brand identity.
Disclaimer
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