Startup Costs

Your total investment will vary depending on your city, your location, and the size of your store. It is difficult to pinpoint the exact amount that you may invest without the specifics of your location.

The Investment Breakdown

At Hot Dog on a Stick, our franchise opportunity is as tasty as the food we sell. Investing in Hot Dog on a Stick is an investment in your career, your independence, your community, and your future.

We know that this is a big investment, and it is not one we want you to take on lightly. Check out the breakdown of expenses when you open one of our franchises, and let this aid in your decision.*

Type of Expenditure

Amount

Method of Payment

When Due

To Whom the Payment Is Made

Franchise fee

$25,000

Lump sum

At signing of franchise agreement

Us

Grand opening marketing

$3,000 – $6,000

As incurred

As incurred

Third party suppliers or Us

Travel and living expenses while training

$2,000 – $8,000

As incurred

As incurred

Airlines, hotels, and restaurants

Initial inventory (food items, including Party Batter)

$5,000 – $10,000

As incurred

As incurred

Suppliers

Other opening inventory

$1,200 – $2,500

Lump sum

Before opening

Suppliers

Architectural fees

$7,000 – $10,000

As incurred

As incurred

Architects

Equipment, furniture, fixtures, equipment and décor

$110,000 – $175,000

As incurred

As incurred

Third parties

Signs

$5,000 – $7,000

As incurred

As incurred

Third parties

Prepaid rent and security deposit

$2,500 – $5,000

As incurred

As incurred

Landlord

Leasehold improvements

$150,000 – $250,000

As incurred

As incurred

Various contractors and suppliers

Utility deposits

$500 – $1,500

As incurred

As incurred

Utility companies

Professional fees

$1,000 – $5,000

As incurred

As incurred

Your attorneys, accountants, and business advisors

Computer system

$2,500 – $5,000

As incurred

As incurred

Suppliers

Business licenses, permits, etc (for first 6 months)

$1,000 – $2,500

As incurred

As incurred

Government agencies

Insurance (3 months)

$2,500 – $3,500

As incurred

As incurred

Insurance companies

Additional funds (3 months)

$30,000 – $40,000

As incurred

As incurred

Employees, suppliers, utilities, etc

TOTALS

$338,200

$556,000

For a traditional or non-traditional store

*This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. An offer can be made by prospectus only. The table above includes information regarding a franchisee’s estimated initial investment for traditional locations from Item 7 of Hot Dog on a Stick 2016 Franchise Disclosure Document (“FDD”). More information, including explanatory footnotes that supplement the table above, can be found in Item 7 of the FDD.

Let these basics give you an idea of how much you should plan to invest in your Hot Dog on a Stick™ franchise. See our available territories to find out if your city is on the map, and get started on the specific number.

Financing Options

Because starting a business requires so much capital, it is likely that you will need some help financing your investment. Luckily, there are many options for financing through a variety of sources.

Small Business Administration Loans:

The Small Business Administration, or SBA, is a national organization with the goal of improving small businesses in America. Qualifying small businesses can have their loans guaranteed up to 90% by the SBA, which makes lenders more willing to work with you.

Traditional Bank Loans:

A bank will determine your net worth, assets, debts, credit score, and other factors to determine your ability to repay. A comprehensive business plan shows the bank the merit of investing in a Hot Dog on a Stick™ and the ways that you intend to meet your goals.

Home Mortgages:

Taking out a line of credit or second mortgage on your home can help you raise the capital to start your business.

Assets:

If you have assets like stocks and bonds, you can cash them in to help generate revenue for your franchise. IRAs and 401(k)s are also good options, though make sure to understand when and how to take money from these funds without paying penalties.

However you decide to pay for your franchise, owning a business is one of the most rewarding ways to go to work every day. People who work for themselves are more satisfied in every aspect of their lives, so what are you waiting for?

Download the Free HDOS Franchise Report


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