Hot Dog On A Stick Franchise FDD, Profits & Costs (2025)
Hot Dog on a Stick® is a distinctive fast-food franchise renowned for its signature stick items and freshly hand-stomped lemonade. Founded in 1946 by Dave Barham on the iconic Muscle Beach in Santa Monica, California, the original stand began by serving ice cream cones and lemonade.
However, with the introduction of a hot dog coated in his mother’s cornbread recipe, Barham rebranded the establishment to Hot Dog on a Stick, highlighting this innovative offering.
Over the decades, Hot Dog on a Stick has expanded beyond its beachside origins into malls and shopping centers across the United States.
The brand is celebrated for its vibrant, striped uniforms—affectionately described as “Red, White and Blue with a Splash of Lemonade”—which embody the company’s commitment to exceptional customer service. In 2014, the franchise was acquired by Global Franchise Group, and later, in 2021, it became part of the FAT Brands family.
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Initial Investment
How much does it cost to start a Hot Dog On A Stick franchise? It costs on average between $278,000 – $439,000 to start a Hot Dog On A Stick franchised restaurant.
The total investment for a Hot Dog on a Stick franchise covers expenses such as construction, equipment, inventory, and initial operating costs. The exact amount varies based on factors such as the restaurant format, location, and whether the franchisee opts to lease or purchase the property. Indeed, Hot Dog on a Stick offers 3 types of franchises:
| Restaurant Type | Initial Investment Range |
|---|---|
| Traditional HOT DOG ON A STICK Restaurant | $331,500 to $439,000 |
| Non-Traditional Restaurant | $277,500 to $364,150 |
| HOT DOG ON A STICK – MARBLE SLAB CREAMERY/GREAT AMERICAN COOKIES/PRETZELMAKER co-brand restaurant | $385,185 to $512,135 |
We are summarizing below the main costs associated with opening a Traditional HOT DOG ON A STICK Restaurant. For more information on costs required to start a Hot Dog on a Stick franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount Range |
|---|---|
| Franchise Fee | $25,000 – $25,000 |
| Grand Opening Marketing | $3,000 – $5,000 |
| Travel and Living Expenses While Training | $1,000 – $3,000 |
| Mixes Ingredients | $5,000 – $8,000 |
| Other Opening Inventory | $5,700 – $11,000 |
| Architectural Fees | $8,000 – $12,500 |
| Furniture, Fixtures, Equipment, and Decor | $125,000 – $131,000 |
| Signs | $7,500 – $11,500 |
| Prepaid Rent and Security Deposit | $2,500 – $5,000 |
| Leasehold Improvements | $125,000 – $185,000 |
| Utility Deposits | $2,200 – $3,000 |
| Professional Fees | $1,000 – $6,000 |
| Point of Sale Systems (POS) and Technology | $7,600 – $14,000 |
| Business Licenses, Permits (First 6 Months) | $1,500 – $2,500 |
| Insurance (3 Months) | $3,500 – $4,500 |
| Additional Funds (3 Months) | $8,000 – $12,000 |
| TOTAL (Traditional Restaurant) | $331,500 – $439,000 |
Average Revenue (AUV)
How much revenue can you make with a Hot Dog on a Stick franchise? A Hot Dog on a Stick franchised restaurant makes on average $416,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,132,000 yearly revenue for similar other food & beverage franchises. Below are a few Hot Dog on a Stick competitors as a comparison:
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Hot Dog On A Stick Franchise Disclosure Document
Frequently Asked Questions
How many Hot Dog On A Stick locations are there?
As of the latest available data, Hot Dog on a Stick operates over 50 locations across the United States. These include both company-owned and franchised units. The brand has also expanded internationally, with locations in South Korea and Shanghai, China.
What is the total investment required to open a Hot Dog On A Stick franchise?
The total investment required to open a Hot Dog On A Stick franchise ranges from $278,000 to $439,000.
What are the ongoing fees for a Hot Dog On A Stick franchise?
Hot Dog on a Stick franchisees are required to pay a royalty fee of 6% of their net sales, which grants them continued access to the company’s established systems, support, and brand identity.
Additionally, there is a marketing fee of 2% of net sales, contributing to national and regional advertising initiatives designed to enhance brand recognition and drive customer traffic to all locations. These fees are typically collected on a monthly basis, ensuring consistent support for both operational excellence and marketing outreach.
What are the financial requirements to become a Hot Dog On A Stick franchisee?
To qualify as a Hot Dog on a Stick franchisee, candidates are typically required to have a minimum net worth of $1,500,000 and at least $500,000 in liquid assets. These financial prerequisites ensure that potential franchisees possess the necessary resources to support the initial investment and ongoing operational costs associated with establishing and running a Hot Dog on a Stick franchise.
How much can a Hot Dog On A Stick franchise owner expect to earn?
The average gross sales for a Hot Dog On A Stick franchise are approximately $0.42 million per location. Assuming a 15% operating profit margin, $0.42 million yearly revenue can result in $63,000 EBITDA annually.
Who owns Hot Dog On A Stick?
Hot Dog on a Stick is owned by FAT Brands Inc., a multi-brand restaurant operator headquartered in Beverly Hills, California. FAT Brands acquired Hot Dog on a Stick in 2021 as part of its purchase of Global Franchise Group, which also included other brands like Round Table Pizza and Marble Slab Creamery.
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