Hotshots Sports Bar and Grill
Bottom line
- Total investment $969K – $2.2M including a $50K franchise fee.
- Average unit revenue of $1.5M/year (median $1.5M). Estimated payback in 4.5 years.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Hotshots Sports Bar and Grill unit return on the cash you put in?
Unlevered ROIC · per unit
14%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Hotshots Sports Bar and Grill units return on equity?
Equity IRR · 5-yr
39.6%
5.30× MOIC
Year-1 DSCR
2.13×
EBITDA ÷ debt service
Equity required
$3.6M
on $12.3M purchase
Total debt
$8.7M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate casual dining sports bars serving food and beverages while managing staff, inventory, and multi-screen sports entertainment. Day-to-day operations include food prep/service, table management, event coordination, staff scheduling, and maintaining sports bar ambiance for primarily male demographics seeking live games.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Moderate-to-caution risk: small emerging system with unverified financial claims and high capital requirements, partially offset by positive growth trajectory and protected territories.
Score breakdown · what drove the 54 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify claimed $345k avg net income
- 02MINORSmall system size (14 units) limits data reliability and supplier negotiating power
- 03MINORHigh initial investment range ($969k–$2.156M) requires significant capital with modest 22.4% net margin claims
- 04MINORRoyalty structure has $26k/year minimum floor (6% of $433k sales threshold) — aggressive for struggling locations
- 05MINOR16.7% YoY unit growth rate is positive but from a very small base; one closure significantly impacts percentage
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
20 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Hotshots Sports Bar and Grill · FDD (2025) PDF