The Hot Spot Franchise FDD, Profits & Costs (2025)
The Hot Spot Studios is a dynamic franchise built around the popular “paint your own pottery” experience, combining artistic expression, community connection, and business opportunity. The brand was launched in 1996 by Olivia Parsons Franks, who opened the very first studio on the West Coast.
In 2023, Franks joined forces with Lorraine Kitsos to take the concept nationwide through franchising. Today, the company is headquartered in Sparks, Nevada, and operates 13 studios across the United States, with locations in states such as North Carolina, Texas, Michigan, and Nevada.
What sets The Hot Spot Studios apart is its variety of hands-on activities that go far beyond pottery painting. Guests can explore canvas art, candle creation, mosaics, slime workshops, and even build succulent gardens.
Initial Investment
How much does it cost to start a The Hot Spot franchise? It costs on average between $75,000 – $158,000 to start a The Hot Spot franchised center.
This includes expenses for studio build-out, equipment, supplies, and initial working capital. The total investment can vary depending on several factors, such as the size and layout of the studio, the market location, and whether the franchisee decides to lease or buy the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $37,500 |
| Training Expenses | $2,000 – $5,000 |
| Website Development | $500 |
| Premises Deposit | $2,000 – $7,000 |
| Utilities Deposits | $100 – $400 |
| Rent – Three Months | $6,000 – $21,000 |
| Design and Architect Fees | $0 – $3,000 |
| Leasehold Improvements, Construction and/or Remodeling | $0 – $15,000 |
| Furniture, Fixtures, & Equipment | $5,000 – $18,000 |
| Exterior Signage | $2,000 – $6,000 |
| Business Licenses and Permits | $500 – $2,000 |
| Computer Systems | $1,200 – $2,400 |
| Initial Inventory to Begin Operating | $6,000 – $20,000 |
| Professional Fees | $2,000 – $4,000 |
| Initial Launch Marketing & Grand Opening Advertising | $1,500 – $2,500 |
| Insurance | $600 – $1,800 |
| Operating Expenses / Additional Funds – Three Months | $8,000 – $12,000 |
| TOTAL | $74,900 – $158,100 |
Average Revenue (AUV)
How much revenue can you make with a The Hot Spot franchise? A The Hot Spot franchised facility makes on average $400,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
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Frequently Asked Questions
How many The Hot Spot locations are there?
The Hot Spot Studios currently has 6 locations owned by franchisees and 3 operating as company-owned.
What is the total investment required to open a The Hot Spot franchise?
The total investment required to open a franchise ranges from $75,000 to $158,000.
What are the ongoing fees for a The Hot Spot franchise?
The Hot Spot Studios franchise charges ongoing fees that include a 5% royalty on gross sales, a 1% marketing fund contribution, and a monthly technology fee of $250.
What are the financial requirements to become a The Hot Spot franchisee?
To qualify as a The Hot Spot Studios franchisee, you need a minimum net worth of $200,000 and at least $80,000 to $100,000 in liquid capital. These requirements ensure that franchisees have the financial capacity to cover startup costs and sustain operations during the initial phase of the business.
How much can a The Hot Spot franchise owner expect to earn?
The average gross sales for a The Hot Spot franchise are approximately $0.4 million per location. Assuming a 15% operating profit margin, $0.4 million yearly revenue can result in $60,000 EBITDA annually.
Who owns The Hot Spot?
The Hot Spot franchise is owned by Olivia Parsons Franks, who founded the concept in 1996, and Lorraine Kitsos, who partnered with her in 2023 to expand the brand through franchising.
Disclaimer
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