Hot Dog On A Stick
Hot Dog On A Stick offers franchises focusing on fresh-squeezed lemonade and 100% turkey dogs on a stick, known for their unique stick-shaped hot dogs. Part of the fast-food industry, this franchise provides various dining options including traditional and non-traditional restaurants.
About Hot Dog On A Stick
Hot Dog on a Stick is a fast food company that was founded by Dave Barham in Santa Monica, California, in 1946, and later branched out into malls and shopping centers. From 2014 to 2021, the company was owned by Global Franchise Group based in Atlanta, GA. Under GFG, the brand opened new locations across the country and moved into the franchising space. On June 28, 2021, Global Franchise Group announced that it would be acquired by FAT Brands, owners of Fatburger and Johnny Rockets. The acquisition was completed on July 22.
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Hot Dog On A Stick franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a HOT DOG ON A STICK Multi-Unit Restaurant development franchise is $50,000 and up [p.1]. This amount includes at least $50,000 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee for both Traditional Restaurants and Non-Traditional Restaurants, as well as Standard Co-Brand Restaurants, is $25,000. This fee is fully earned upon payment and is not refundable [p.22, p.39].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is calculated as a percentage of Net Sales, paid weekly during the term of the agreement [p.117]. For advertising fees, franchisees pay based on a percentage of net sales, with funds used for various marketing activities both locally and nationally [p.105, p.59].
How long is the initial franchise agreement, and can I renew it?
The term of the initial franchise agreement isn't specified in detail here. However, renewal terms are discussed on page [p.116], indicating that if certain conditions apply (such as the franchisor not offering new franchises or revising its agreements), the agreement may continue on a week-to-week basis until such issues are resolved.
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit a transfer of ownership of the franchise except for good cause. Good cause includes but is not limited to unspecified reasons [p.6 (g)].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.243]. However, under Virginia law, termination without reasonable cause is unlawful [p.250]. Good cause for termination includes failure to comply with lawful provisions of the franchise agreement and failing to cure such failures after receiving written notice and a reasonable opportunity to cure [p.6(c)].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific net worth or liquid capital requirements for franchisees to qualify.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.64, p.63]. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands that the company controls [p.63, p.64]. Additionally, the company reserves the right to operate Off-Site Events and can grant exclusive rights for specific events [p.129], further indicating a non-exclusive territory arrangement.
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that includes executive training for the franchisee or owner, and management-level training for general managers, assistant managers, and shift managers [p.55]. This training is supervised by FAT's Director of Training, Jennifer Bonilla, who took on this role in June 2019 [p.57]. Additionally, ongoing support includes ensuring that franchisee personnel receive ongoing training in the use and operation of the Brand Technology System [p.310]. If a franchisee contacts the Help Desk for support with issues that could have been resolved by properly trained personnel, they may be invoiced for such support at current hourly rates [p.310].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information if there is a reasonable basis for it and if such information is included in the disclosure document [p.85]. However, other than the specified financial performance representation, the franchisor does not make any additional financial performance representations either orally or in writing [p.89]. Written substantiation for this representation can be provided upon request [p.89].
What am I restricted to selling, and where must I buy supplies?
You are required to offer the specific brand and product mix as specified by the franchisor, which may be determined by inventory percentage or retail space allocation. You may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, potentially at higher costs than alternative sources [p.4, p.42]. Additionally, you cannot sell any merchandise without prior written approval from the franchisor [p.126].