Hite DigitalFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Hite Digital franchise requires a total initial investment of $57K – $120K, including a $50K franchise fee. Per the 2022 FDD, average unit revenue was $304K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $57K – $120K
- 14th pct Business Serv…
- Avg gross sales
- $304K
- 6th pct Business Serv…
- Royalty
- N/A
- Units
- 16
- 20th pct Business Serv…
- SBA default
- N/A
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.4x in gross revenue, well above the typical 1.5-2.5x range.
Franchised units fell from 15 to 1 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $57K – $120K including a $50K franchise fee.
- Average unit revenue of $304K/year (median $248K).
- Verdict A (Top Quintile) with a risk score of 29/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Hite Digital International, LLC
- Incorporated in
- DE
- HQ
- 1000 N. West St. Ste. 1501, Wilmington, DE 19801
- Auditor
- KraftCPAs PLLC
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
- ⚠ Going-concern note
- Disclosed in FDD 2022
- Status as of 2022; may have been resolved in a later filing we don't yet have.
Overview
About
Hite Digital franchisees typically provide digital marketing and web services (SEO, social media, web design) to small-to-medium businesses. Day-to-day operations likely involve client acquisition, campaign management, reporting, and service delivery—either solo or with a small team depending on scale. Revenue model appears service-based with recurring client contracts.
- CEO
- J.C. Hite
- Headquarters
- DE
- Founded
- 2020
- FDD year
- 2022
- States available
- 13
FDD Item 7 · 2022 filing · 8 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee | $50K | $100K | |
| Furniture, Fixtures & Equipment | $0 | $5K | |
| Insurancenot refundable | $2K | $2K | |
| Office Equipment and Supplies | $0 | $500 | |
| Trainingnot refundable | $1K | $3K | |
| Licenses & Permitsnot refundable | $200 | $500 | |
| Legal & Accountingnot refundable | $1K | $5K | |
| Working Capital/Additional Funds (3 months)not refundable | $3K | $5K | |
| Total initial investment | $57K | $120K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$46K
15.0% margin
Unlevered ROIC
49%
EBITDA / total invested capital
Payback
24 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $57K – $120K
- Better than avg vs category
- Liquid capital req'd
- $3K – $5K
- Better than avg vs category
- Franchise fee
- $50K – $100K
- Better than avg vs category
- Royalty
- the greater of $250 per month or 8% of Gross Sales
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | greater of $250 per month or 8% of Gross Sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $500 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $304K
- Per unit, per year
- Median gross sales
- $248K
- Item 19 type
- Historical
- Sample size
- 15 units
- vs category median 32 · small
- Range (low → high)
- $113K→$248K
- Cohort dispersion (min → max)
- Reporting year
- 2021
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 3 / 5 · above
Compared against 360 Business Services brands
vs Business Services averages
How Hite Digital Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 16
- Opened
- 11
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 94%
- vs corporate-owned
- Net growth (yr3)
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $175K
- Median loan
- $175K
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Hite Digital's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Hite Digital presents moderate-to-high risk due to missing profitability disclosure, unprotected territory, explosive growth trajectory without transparent unit economics, and high royalty structures that could significantly impair actual franchisee earnings.
Litigation (Item 3)
No litigation information provided in Item 3
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KraftCPAs PLLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 29 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — impossible to assess actual profitability despite $304k average revenue
- 02MINORUnprotected territory creates direct competition risk; multiple franchisees in same market could cannibalize revenue
- 03MINORExtremely rapid unit growth (275% YoY) suggests either aggressive recruitment or high churn — sustainability unclear with only 16 units
- 04MINORHigh royalty burden (greater of $250/month floor OR 8% of sales) could consume 40-50% of net profits at lower revenue levels
- 05MINORFranchise fee of $49,950 represents 16% of total investment but profitability timeline unknown without Item 19 data
- 06MINORYoung system with minimal operational history; no long-term franchisee retention data available
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation information provided in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 34 hrs
- Training location
- On-site at franchisee's restaurant and corporate training facility
- Ongoing training
- Required
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
27 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hite Digital · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hite Digital franchise?
The total investment to open a Hite Digital franchise ranges from $57K – $120K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hite Digital franchise owners earn?
According to Item 19 of the Hite Digital FDD, the average gross sales per unit is $304K. The median is $248K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Hite Digital's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Hite Digital (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Hite Digital franchise locations are there?
As of their most recent FDD filing, Hite Digital has 16 total units in the United States, including 15 franchised units and 1 company-owned units. 11 new units were opened in the latest reporting year.
Is Hite Digital a good franchise to buy?
FranchiseVerdict rates Hite Digital as a A-grade franchise with a risk score of 29 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.