hoots wingsFranchise Cost, Revenue & Review 2026
Data from FDD filing
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]. The 2023 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $415K – $1.1M
- 74th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 14
- 41st pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants 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
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $415K – $1.1M including a $30K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 91/100.
- 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
- Hoots Franchising, LLC
- Parent company
- Hawk Parent, LLC
- Ultimate parent
- Hooters, Inc.
- 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
- $487K
- vs $488K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2023
- Status as of 2023; may have been resolved in a later filing we don't yet have.
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
Franchisees operate quick-service or casual-dining wing restaurants under the Hoots Wings brand, managing food preparation, inventory, staffing, and customer service. Daily operations involve coordinating kitchen production, managing front-of-house service, tracking sales, and ensuring compliance with brand standards while remitting 5% of gross sales as royalties.
- CEO
- Sal Melilli
- Headquarters
- GA
- Founded
- 2018
- FDD year
- 2023
- States available
- 4
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
- Below avg, review vs category
- Liquid capital req'd
- $25K – $120K
- Near category avg vs category
- Franchise fee
- $27K – $30K
- Better than avg vs category
- Royalty
- 5.0%
- percentage_of_gross · 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 |
| Total fee load | 7.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How hoots wings Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 14
- Opened
- 3
- Last reporting year
- Closed
- 1
- Turnover rate
- 7.1%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
- Multi-unit owners
- 23.8%
- Net growth (yr3)
- +33.3%
- Net unit change last year
- 3-yr CAGR
- +200.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 0
- Terminated (3yr)
- 5
- Non-renewed (3yr)
- 2,022
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 12
- Franchisor bought back
- Projected new
- 6
- Franchisor's next-year forecast
- Ceased ops
- 14.3%
- Units that stopped operating
Last reporting year only, multi-year history not disclosed in this brand's FDD.
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).
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
3 case reference(s): 0 pending, 5 settled.
Largest disclosed settlement: $181,725
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 91 / 100 rating
- 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
- 04HIGHGoing Concern status is ambiguous - requires clarification on whether this applies to franchisor stability or specific unit performance issues
- 05MED5% royalty on gross sales with no disclosed net income prevents assessment of actual franchisee profitability or break-even timeline
- 06HIGHBankruptcy-related adversary proceeding in litigation history suggests financial distress within franchise system
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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Geographic Area |
| Protected territory | Yes |
| 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 |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 9 |
View Item 3 litigation summary
3 case reference(s): 0 pending, 5 settled.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 311 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- NCR’s Aloha for Table Service POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NCR’s Aloha for Table Service POS System
Item 20 · call current owners
Franchisee Contacts
12 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
hoots wings · FDD (2023) PDF
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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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. 3 new units were opened in the latest reporting year.
Is hoots wings a good franchise to buy?
FranchiseVerdict rates hoots wings as a F-grade franchise with a risk score of 91 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.