hoots wings Franchise Cost, Revenue & Review 2026
- Investment
- $415K – $1.1M
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Hoots Wings is a quick-service franchise serving Hooters-style chicken wings, tenders, and sides. Franchisees run the restaurants, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A hoots wings franchise requires a total initial investment of $415K – $1.1M, including a $30K franchise fee and an ongoing 5.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $415K – $1.1M
- 66th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 14
- 44th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $415K – $1.1M including a $30K franchise fee, 5.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 55/100 (higher is better).
- GROWTHPositive: net +3 franchised outlets in the latest year (3 opened, 0 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Hoots Franchising, LLC
- Parent company
- Hooters of America, LLC (HOA)
- FDD Item 1, page 10 of the 2023 FDD
- Ultimate parent
- Hawk Parent, LLC
- FDD Item 1, page 10 of the 2023 FDD
- CEO title
- President, Manager and Chief Executive Officer
- Sal Melilli
- CEO experience
- 17 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- 1815 The Exchange, Atlanta, Georgia 30339
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $488.0M
- vs $486.6M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- of ours described below)
- of Hooters of America
- HILP
- HOA Gift Cards
- Hoots System Fund
- Hoots Restaurant Holder
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Sal Melilli
- Headquarters
- GA
- Founded
- 2018
- FDD year
- 2023
- States available
- 4
Can you afford it, and what does the money buy?
Entry cost runs 59% above the typical quick-service restaurants franchise.
Source: FDD 2023 · Items 5–7
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $25K | $120K |
| Equipment, build-out, other | $360K | $982K |
| Total initial investment | $415K | $1.1M |
Source: hoots wings 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $415K – $1.1M
- Middle of category vs category
- Liquid capital req'd
- $25K – $120K
- Middle of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Training fee | $9K |
| Transfer fee | $15K |
| Renewal fee | $13K |
| Inventory (initial) | $10K – $20K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
hoots wings makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one hoots wings unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2023 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% (near the Quick-Service Restaurants median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System expanding at 200.0% CAGR over 3 years across 14 units — operators are staying and new ones are joining.
Multi-unit rate
Only 24% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How hoots wings Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 14
- Opened
- 3
- 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
- N/A
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
- Multi-unit owners
- 23.8%
- Net growth (3-yr)
- +200.0%
- Net unit change over 3 years
- 3-yr CAGR
- +200.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 6
- Franchisor's next-year forecast
- Ceased ops
- 14.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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
- California
- Hawaii
- Indiana
- Maryland
- Michigan
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
12 current owners across 4 states.
- TX 6
- IL 3
- FL 2
- NJ 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
High-growth wings concept with aggressive expansion (33%), undisclosed unit economics, and documented litigation involving franchisor affiliates over contract disputes and unpaid royalties presents meaningful profitability and legal risks.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation disclosed against Hoots Franchising LLC. Multiple concluded affiliate (HOA/Hooters) cases disclosed covering franchisee defaults, territory disputes, and collection actions, all resolved.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Figures from the audited Consolidated Financial Statements of HOA Restaurant Group, LLC and Subsidiaries (the parent/guarantor of franchisor Hoots Franchising, LLC), as Item 21 relies on these consolidated audited statements. Franchisor Hoots Franchising, LLC itself only has unaudited financials (F-3/F-4). Amounts originally stated "in thousands of USD" and have been multiplied by 1,000. Most recent fiscal year ended December 25, 2022 (prior year December 26, 2021). Total revenues FY2022 = $487,979K comprising restaurant sales net $463,165K, royalty and franchise fee revenues $22,850K, and other revenues $1,964K. Balance sheet reconciles: total liabilities $744,381K + members' deficit ($86,671K) = total assets $657,710K. Audited by PricewaterhouseCoopers LLP, Atlanta, GA, dated April 24, 2023.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 55 / 100 verdict
- 01MINORNo Item 19 financial disclosure (average unit volume and net income not provided) - impossible to assess actual profitability or ROI on $414.5K-$1.132M investment
- 02MINORAggressive unit growth (33.3% YoY) with only 14 total units suggests either rapid expansion phase with unproven model or cherry-picked growth period
- 03HIGHMultiple litigation cases involving franchisor affiliates covering breach of contract, trademark disputes, non-compete enforcement, and unpaid royalty arbitrations indicate systemic disputes with franchisees
- 04MED5% royalty on gross sales with no disclosed net income prevents assessment of actual franchisee profitability or break-even timeline
- 05HIGHBankruptcy-related adversary proceeding in litigation history suggests financial distress within franchise system
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 14 |
| Curable defaultsℹ | 12 |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | GA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed against Hoots Franchising LLC. Multiple concluded affiliate (HOA/Hooters) cases disclosed covering franchisee defaults, territory disputes, and collection actions, all resolved.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 314 hrs
- Training location
- Atlanta, GA or a region nearer to franchisee
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisee selects with franchisor approval; franchisor provides guidelines and may conduct site selection trip
- Franchisor financing
- Not offered
- Item 10
- POS system
- NCR Aloha
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NCR Aloha
Item 20 · call current owners
Franchisee Contacts
12 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a hoots wings franchise?
The total investment to open a hoots wings franchise ranges from $415K – $1.1M, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do hoots wings franchise owners earn?
hoots wings makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns hoots wings?
hoots wings is franchised by Hoots Franchising, LLC. Its parent company is Hooters of America, LLC (HOA). The ultimate parent named in the FDD is Hawk Parent, LLC. Source: FDD Item 1, 2023 filing.
What is Item 19 in the hoots wings FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the hoots wings FDD and qualifies whose outlets they describe.
What is hoots wings's franchise failure rate?
SBA 7(a) loan charge-off data is not available for hoots wings (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 hoots wings franchise locations are there?
As of their most recent FDD filing, hoots wings has 14 total units in the United States, including 12 franchised units and 2 company-owned units. 3 new units were opened in the latest reporting year.
Is hoots wings a good franchise to buy?
FranchiseVerdict rates hoots wings as a B-grade franchise with a verdict score of 55 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.