Hole in the WallFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Hole in the Wall franchise requires a total initial investment of $83K – $130K, including a $60K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.2M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $83K – $130K
- 22nd pct Home Services
- Avg gross sales
- $1.2M
- 35th pct Home Services
- Royalty
- 6.0%
- 13th pct Home Services
- Units
- 3
- 9th pct Home Services
- SBA default
- N/A
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home 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 11.1x in gross revenue, well above the typical 1.5-2.5x range.
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $83K – $130K including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.2M/year.
- Verdict A (Top Quintile) with a risk score of 28/100.
- Revenue data based on only 1 reporting unit. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Hole in the Wall Franchising, LLC
- Incorporated in
- FL
- HQ
- 2875 S Orange Ave, #500-525 Orlando, FL 32806
- Auditor
- Omar Alnuaimi, CPA
- Audited financials
- Franchisor revenue
- $66K
- Most recent fiscal year
Affiliated brands
- has the same business address as us
- Hole in the Wall Enterprises
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Hole in the Wall franchisees operate a food/beverage establishment (likely casual dining or specialty food concept) generating approximately $1.18M in annual revenue. Day-to-day operations involve managing customer service, inventory, staffing, food preparation/service, and POS systems while remitting 6% royalties to the franchisor.
- CEO
- William DeMent
- Headquarters
- FL
- Founded
- 2022
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $9K | $30K |
| Equipment, build-out, other | $14K | $41K |
| Total initial investment | $83K | $130K |
Source: Hole in the Wall 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$130K
11.0% margin
Unlevered ROIC
103%
EBITDA / total invested capital
Payback
12 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $83K – $130K
- Better than avg vs category
- Liquid capital req'd
- $9K – $30K
- Better than avg vs category
- Franchise fee
- $60K – $60K
- Near category avg vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 53.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $45 |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Inventory (initial) | $500 – $2K |
| Total fee load | 53.0% of rev |
At 53.0% total fee load, roughly $626K per year goes to the franchisor before you pay a single operating expense.
Financial Performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Affiliate store P&L
- Sample size
- 1 units
- vs category median 25 · small
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 349 Home Services brands
Revenue is 11.1x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Home Services averages
How Hole in the Wall Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 2
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 67%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 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.
Available to sell in · Item 12
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- 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
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Hole in the Wall presents caution-level risk: a micro-franchise system with unverified financial claims, unclear franchisor stability, and insufficient operating units to validate the business model.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Omar Alnuaimi, CPA
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 28 / 100 rating
- 01MINOROnly 3 units in system with unknown growth trajectory indicates extremely small/stagnant franchise
- 02MEDNo Item 19 (Financial Performance Representations) disclosed despite $364k average net income claim - cannot verify earnings
- 03HIGHGoing Concern status is False, suggesting potential financial instability or unclear long-term viability of franchisor
- 04MINORHigh royalty burden (6% + minimum) on $1.18M average revenue reduces net margins significantly
- 05MINORFranchise fee of $59,500 is substantial (73% of minimum investment) with only 3 reference franchisees available
- 06MINORUnknown growth rate with only 3 units raises questions about franchisee demand and system expansion
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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Population-based |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 28 hrs
- On-the-job training
- 32 hrs
- Training location
- On-site and corporate
- POS system
- QuickBooks online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks online
Item 20 · call current owners
Franchisee Contacts
16 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hole in the Wall · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hole in the Wall franchise?
The total investment to open a Hole in the Wall franchise ranges from $83K – $130K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hole in the Wall franchise owners earn?
According to Item 19 of the Hole in the Wall FDD, the average gross sales per unit is $1.2M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Hole in the Wall's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Hole in the Wall (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 Hole in the Wall franchise locations are there?
As of their most recent FDD filing, Hole in the Wall has 3 total units in the United States, including 0 franchised units and 1 company-owned units. 2 new units were opened in the latest reporting year.
Is Hole in the Wall a good franchise to buy?
FranchiseVerdict rates Hole in the Wall as a A-grade franchise with a risk score of 28 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.
For franchisors
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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.