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 | $15,000 - $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 | 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 2018 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
