Startup Costs - Hot Dog on a Stick - Fast Food Franchise

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 ExpenditureAmountMethod of PaymentWhen DueTo Whom the Payment Is Made
Franchise fee$15,000 – $25,000Lump sumAt signing of franchise agreementUs
Grand opening marketing$3,000 – $6,000As incurredAs incurredThird party suppliers or Us
Travel and living expenses while training$2,000 – $8,000As incurredAs incurredAirlines, hotels, and restaurants
Initial inventory (food items, including Party Batter)$5,000 – $10,000As incurredAs incurredSuppliers
Other opening inventory$1,200 – $2,500Lump sumBefore openingSuppliers
Architectural fees$7,000 – $10,000As incurredAs incurredArchitects
Equipment, furniture, fixtures, equipment and décor$110,000 – $175,000As incurredAs incurredThird parties
Signs$5,000 – $7,000As incurredAs incurredThird parties
Prepaid rent and security deposit$2,500 – $5,000As incurredAs incurredLandlord
Leasehold improvements$150,000 – $250,000As incurredAs incurredVarious contractors and suppliers
Utility deposits$500 – $1,500As incurredAs incurredUtility companies
Professional fees$1,000 – $5,000As incurredAs incurredYour attorneys, accountants, and business advisors
Computer system$2,500 – $5,000As incurredAs incurredSuppliers
Business licenses, permits, etc (for first 6 months)$1,000 – $2,500As incurredAs incurredGovernment agencies
Insurance (3 months)$2,500 – $3,500As incurredAs incurredInsurance companies
Additional funds (3 months)$30,000 – $40,000As incurredAs incurredEmployees, suppliers, utilities, etc
TOTALS$338,200 – $556,000For 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.


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?

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