Frequently Asked Questions
Who is Hooters?
Hooters is a beach themed casual dining restaurant chain, and fun gathering spot, that has been serving quality food with exceptional service for more than thirty (30) years. With over 430 restaurants in 29 countries and worldwide brand awareness, Hooters mission is to make our guests happy.
What is the Franchise Fee for Domestic Locations?
The Franchise Fee is $75,000 and is paid upon execution of the Franchise Agreement.
What is the term of the franchise agreement?
The initial term of the Franchise Agreement is twenty (20) years. The agreement is renewable for two (2) additional ten (10) year terms.
What is the royalty rate?
For domestic restaurants, the royalty rate is 5% of gross sales, exclusive of sales tax, and is paid every four (4) weeks. Royalties and fees for international locations will vary by country.
Is there a national advertising contribution?
Yes; the current advertising contribution is 2.5% of gross sales for domestic restaurants, and .5% for international restaurants. These funds are utilized for the creative development of our menu, photography, video for commercials, product development and testing, PR firm services, and in the United States is deployed in the actual purchase of media in most markets.
What is the initial investment cost to open a Hooters restaurant?
There are numerous geographical factors that affect the costs of construction, equipment, and FFE, as well as location and size factors. Item 7 of the Franchise Disclosure Document provides a range of costs by category for your review.
Does Hooters provide financing?
We do not provide direct financing; however, there are numerous lenders that are familiar with Hooters and are interested in communicating with our franchisees regarding their lending needs.
Is previous restaurant experience required?
Yes, five years of multi-unit restaurant experience is required, either from you as the franchisee or from a partner that will be the main operator of the restaurants.
What kind of support will I receive from HOA Franchising, LLC?
HOA Franchising, LLC provides initial and on-going support for your franchise. This includes: operations, real estate, design and construction, training, supply chain, quality assurance, and marketing.
Is there a charge for the training program?
No; the training is included as part of your Franchise Fee. However, lodging, food, and other travel expenses incurred during training are the responsibility of the franchisee. In addition, the travel, lodging and per diem meal costs for the trainers that come assist you with your restaurant opening will be at the expense of the franchisee.
Do I need to build a new building for Hooters?
Hooters are adaptable and can be built in our freestanding prototype, as a conversion of an existing free standing restaurant, in high visibility shopping center end cap locations, in high traffic street front retail locations, and in highly trafficked captive audience venues.
How much space is needed for a Hooters restaurant?
The free standing prototype Hooters is a building of approximately 6,000 square feet and requires a lot of size of at least 1.5 acres. For other venues or conversions, locations with at least 5,000 square feet of space may be adaptable for a Hooters restaurant.
Who will select the location?
It is the responsibility of the franchise owner to acquire a suitable location; however, we will work with you during the site selection process, and all sites must be reviewed and accepted by HOA Franchising, LLC.
Does HOA Franchising, LLC provide a site and construct the building for the new franchise?
HOA Franchising, LLC will assist in site selection for the franchisee and provide specifications for construction, furniture, fixtures and equipment. However, it is the franchisee’s responsibility to work with an engineer and architect to develop site plans, architectural plans, civil drawings, obtain permits and construct their restaurant. All sites must be accepted by Hooters and all final plans and specifications must be reviewed and approved by our design and construction team. A franchisee may either purchase or lease the land and building, or may lease the premises in which the restaurant will operate.
How much will I make owning a Hooters restaurant?
There are numerous factors that affect the profitability of a restaurant, including sales volume, location, the size of the restaurant, competition, managerial skill, dedication, and the ability to manage the costs of the business appropriately. During your due diligence and after a thorough investigation of our franchise program, you should have the data necessary to make an informed business decision as to whether investing in a Hooters Restaurant franchise is compatible with attaining your personal business and financial goals.
In regard to specific information about the potential sales, operating costs, and profitability of a franchise, Hooters or otherwise, it is advisable to contact existing franchise owners to learn first hand of their experience. Hooters will provide you with a list of our franchise owners via the Franchise Disclosure Document (FDD). We do not require our franchise owners to provide you with their personal financial information, but it has been our experience that many of them are willing to share information about their businesses and how they do, and their satisfaction with both the concept and franchisor.
No employee of Hooters may furnish any specific oral or written information regarding the potential sales, costs income, or profits of a new Hooters franchise other than that provided in our FDD. The intent of this policy is consistent with our commitment not to, in any way, mislead a potential franchisee; also, with the intent of the Federal Trade Commission that each investor should make an independent investigation as to the profitability of a business opportunity and how it applies to their particular situation. We do, however, provide certain unaudited historical sales and cost information on our corporately owned restaurants in item 19 of our FDD. The FDD also contains sample agreements such as our Franchise and Development Agreements.
Is the franchise transferable?
Yes; you may sell or transfer your franchise to a buyer that is approved by HOA Franchising, LLC.
The market I’m interested in is not available, why is that?
That particular market may already be under a development agreement with a franchisee or may not fit in our current growth strategy for Hooters.
I’m excited to learn more! What’s the next step?
Please review all of the information on our franchising website to learn more about the company and our franchise award process. You may complete the online inquiry. Once you submit that to us, we will promptly review your information and contact you again to discuss next steps! The entire franchise award process typically takes between 75-120 days.
Is a personal guarantee required for the franchise?
Yes, personal guarantees are required from the principals for the franchise agreement.
How long does the franchise award process take?
Approximately 90 days.
Does HOA Franchising, LLC offer master franchising?
No, HOA Franchising, LLC secures development opportunities through multi-unit direct franchising and does not allow others to sub-franchise the brand.