Start a Hot Dog on a Stick Franchise in 2024

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $457K - $630K

Units as of 2024: 49 3% over 3 years

Founded in 1946, Hot Dog on a Stick is an American franchise that sells hot dogs. What started as a single location has spread to more than 50 locations in the United States to go along with several overseas. Of those, more than 15 are operated by franchisees.

One thing that has allowed Hot Dog on a Stick to remain on the top of its game for this long is its unique position in the fast-food industry. It may stand out from its competitors by making delicious hot dogs, quirky uniforms, and fresh lemonade, all in a serene atmosphere.

Quality practices are Hot Dog on a Stick’s main focus—if you are going to make a hot dog, there’s no way to do it apart from making it delicious.

Why You May Want to Start a Hot Dog on a Stick Franchise

If you have excellent entrepreneurial and management skills and think you have what it takes to don a Hot Dog on a Stick uniform while providing amazing service with a smile, you may want to consider becoming a Hot Dog on a Stick franchisee. Hot Dog on a Stick believes it is an iconic American brand whose progress is clear for everyone to see. With its limited menu that could be easy to prepare, executing its operation may be simple and convenient.

Opening a Hot Dog on a Stick franchise could offer a more predictable outcome than investing in a completely new brand that may struggle to thrive in an already crowded and competitive industry.

What Might Make a Hot Dog on a Stick Franchise a Good Choice?

Depending on your city, the physical location, and the size of your store, opening a Hot Dog on a Stick may be a good choice because of how it runs its franchises. There is an outlined, proven business model for every franchisee, so you may be able to focus on the operations of your franchise rather than company logistics.

As a franchisee, you will be responsible for following the company recipe, wearing the famous Hot Dog on a Stick uniforms, and serving customers with a smile on your face.

How to Open a Hot Dog on a Stick Franchise

To be part of the Hot Dog on a Stick team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company’s set net worth and liquid capital requirements.

While the process of opening a Hot Dog on a Stick franchise may not be complicated, it’s on you to do your research to determine if the franchise will do well in your area. If awarded a franchise, franchisees may receive support from the Hot Dog on a Stick brand throughout the franchising process. In addition to pre-opening training, franchisees could receive support through brand awareness, marketing, research, and construction.

Company Overview

About Hot Dog on a Stick

Industry	Food
Related Categories	Hot Dogs
Founded	1946
Parent Company	FAT Brands Inc.
Leadership	Taylor Wiederhorn, Chief Development Officer
Corporate Address	9720 Wilshire Blvd., #500 Beverly Hills, CA 90212
Social	Facebook, Twitter, Instagram, TikTok

Business Overview

Franchising Since	1997 (27 years)
# of employees at HQ	335
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises worldwide.
# of Units	49 (as of 2024)

Information for Franchisees

Here's what you need to know if you're interested in opening a Hot Dog on a Stick franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$25,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$456,500 - $629,500
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$1,500,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$500,000
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	6%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	4%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	15 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	Hot Dog on a Stick has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	194 hours
Classroom Training	56 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Grand Opening Online Support Security & Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Ad Templates National Media Regional Advertising Social Media Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes