How Much Does a Hite Digital Franchise Cost?
Data from the 2022 Franchise Disclosure Document
Investment Summary
Total Investment
$57K – $120K
Franchise Fee
$50K
Royalty
the greater of $250 per month or 8% of Gross Sales
Ad Fund
2.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Hite Digital is $50K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Hite Digital franchise requires a total investment of $57K – $120K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $3K to $5K.
Ongoing Costs
Beyond the initial investment, Hite Digital franchisees pay ongoing fees. The royalty structure is: the greater of $250 per month or 8% of Gross Sales. The advertising or brand fund contribution is 2.0% of gross sales. There is also a technology fee of $500.
Net Worth & Liquid Capital Requirements
Hite Digital requires working capital of $3K – $5K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to Hite Digital's Item 19 financial performance representation:
Median gross sales: $248K
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View Hite Digital?
SBA Loans Issued
1
Default Rate
N/A
The SBA (Small Business Administration) tracks loan performance for franchise brands. Hite Digital has 1 SBA-backed loans on record. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
Talk to current Hite Digital franchise owners
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