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LAST UPDATED: May 10, 2023FRANCHISE WEBSITE:&nbsp;<a href="https://www.hooters.com/franchising/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hooters-franchise-costs-fees-profit-and-data-2722536" target="_blank" rel="nofollow">https://www.hooters.com/franchising/</a>NUMBER OF LOCATIONS: 370REPORTED COST TO GET IN: $2,256,500 - $4,275,000REPORTED ROI (Item 19):&nbsp;$3,024,524 (average gross annual sales)<a href="https://www.hooters.com/franchising/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hooters-franchise-costs-fees-profit-and-data-2722536" target="_blank" rel="nofollow">Hooters</a> is an internationally-recognized brand, known for its lively atmosphere, sports viewing and the iconic Hooters Girls. With a menu focusing on wings, burgers, seafood and more, Hooters has attracted a substantial, global customer base. Today, as a franchise opportunity, the brand competes in the highly saturated casual dining sector against other sports bars and casual dining chains.<h4>How Many Hooters Locations Are There?</h4>In 1983, six businessmen in Clearwater, Florida opened the first Hooters location, aiming to create a casual beach-themed restaurant. The chain’s original menu consisted mostly of sandwiches and fried seafood items, with a focus on the Hooters “Original” buffalo-style chicken wings. Since starting to franchise a few years later, Hooters has grown from a small restaurant venture in Florida to a truly globally recognized brand.In recent years, Hooters was hit hard by the impact of the COVID-19 pandemic, although the brand’s niche market was on the&nbsp;<a href="https://www.vox.com/the-goods/2018/10/4/17911936/hooters-uniform-breastaurant-decline?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hooters-franchise-costs-fees-profit-and-data-2722536" target="_blank" rel="nofollow">decline</a> even prior to that. According to&nbsp;<a href="https://www.businessinsider.com/hooters-business-strategy-shifts-2017-8?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hooters-franchise-costs-fees-profit-and-data-2722536" target="_blank" rel="nofollow">BusinessInsider</a>, Millennials are less apt to frequent their local Hooters than the people that made it popular throughout the 1980s. The Hooters of America corporation was officially sold to Nord Bay Capital and TriArtisan Capital Advisors&nbsp;<a href="https://www.restaurantbusinessonline.com/financing/hooters-america-has-been-sold?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hooters-franchise-costs-fees-profit-and-data-2722536" target="_blank" rel="nofollow">in 2019.</a> That same year, the company also launched a fast-casual offshoot named&nbsp;<a href="https://1851franchise.com/new-hooters-owners-plan-a-more-family-friendly-spinoff-concept-2710410">Hoots Wings</a>, which offers plenty of the standard Hooters menu items, but under a fast food model that bears little resemblance to the “experience” of a traditional Hooters.&nbsp;Despite all those challenges, Hooters has maintained its reputation as an undeniable staple in the casual dining sector. According to its website, Hooters currently operates around 370 locations in 35 states and 18 countries worldwide.<h4>What Is the Hooters Business Model?</h4>Hooters locations are typically freestanding buildings, though they can also be found in high-traffic mall and airport locations. Franchise owners are expected to manage a full-service, casual dining establishment with a sports bar atmosphere. The menu features a variety of wings, burgers, seafood, salads and sandwiches, with a full bar available.The free-standing prototype Hooters is a building of a minimum of 3,000 square feet and requires a lot size of at least 5,000 square feet. For other venues or conversions, locations with at least 3,000 square feet of space may be adaptable for a Hooters restaurant.Site requirements include:&nbsp;<ul><li>Lot size of 1.5 acres or larger unless parking can be shared with adjoining lots</li><li>Minimum building size of 5,000 square feet</li><li>Minimum of 80 parking stalls</li><li>Superior visibility of the building and signage elements</li><li>Easy accessibility into location, with a preference for two curb cuts at a signalized corner</li><li>Traffic count of at least 30,000 VPD</li><li>Superior strategic positioning of the site for the trade area</li><li>Strong retail synergy within ½ mile of the location</li><li>Late-night activity drivers within one mile of the site</li><li>Ability to achieve Hooters brand signage and exterior elements</li></ul><h4>How Much Can Hooters Franchise Owners Make?</h4>According to the brand’s&nbsp;<a href="https://www.restfinance.com/app/pdf/fdd/Hooters.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hooters-franchise-costs-fees-profit-and-data-2722536" target="_blank" rel="nofollow">2019 FDD</a>, franchised Hooters locations saw average gross annual sales of $3,024,524.&nbsp;<h4>How Much Does It Cost to Open a Hooters?</h4>The estimated total investment necessary to begin the operation of a Hooters franchise ranges from $2,256,500 - $4,275,000. The following costs are part of the upfront costs included in the initial investment for Hooters. Many of these are one-time fees that are needed to launch the franchise.&nbsp;<ul><li>Initial Franchise Fee: $75,000</li><li>Real Estate Lease Payments: $7,000 - $50,000</li><li>Liquor License : $5,000 - $225,000</li><li>Improvements/Signage: $1,400,000 - $2,500,000</li><li>Equipment, Furniture, Supplies and Smallwares: $550,000 - $750,000</li><li>Initial Inventory: $25,000 - $100,000</li><li>Labor and Training: $65,000 - $140,000</li><li>Initial advertising: $10,000 - $50,000</li><li>Insurance: $45,000 - $100,000</li><li>Professional Fees: $20,000 - $100,000</li><li>Deposits, Licenses and Other Prepaid Expenses: $4,500 - $35,000</li><li>Additional Funds – 3 Months: $50,000 - $150,000</li><li>Estimated Total:&nbsp;$2,256,500 - $4,275,000</li></ul><h4>What Is the Franchise Fee for Hooters?</h4>The initial franchise fee is $75,000 and is paid upon execution of the Franchise Agreement.You need a minimum net worth of $2.5 million and liquidity of $1.5 million. These requirements are minimums and may be higher in certain markets.<h4>Who Is the Leadership of Hooters?</h4><ul><li><a href="https://www.linkedin.com/in/sal-melilli-b412b81?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hooters-franchise-costs-fees-profit-and-data-2722536" target="_blank" rel="nofollow">Sal Melilli - Chief Executive Officer and President</a></li><li><a href="https://www.linkedin.com/in/tbaum?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hooters-franchise-costs-fees-profit-and-data-2722536" target="_blank" rel="nofollow">Tim Baum - Vice President of Operations</a></li><li><a href="https://www.linkedin.com/in/cary-hudson-cpa-7504764?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hooters-franchise-costs-fees-profit-and-data-2722536" target="_blank" rel="nofollow">Cary Hudson - Vice President and Corporate Controller</a></li><li><a href="https://www.linkedin.com/in/cheryl-whiting-kish-0ba7b01?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hooters-franchise-costs-fees-profit-and-data-2722536" target="_blank" rel="nofollow">Cheryl Whiting-Kish - Chief People Officer</a></li><li><a href="https://www.linkedin.com/in/beauchampmike?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hooters-franchise-costs-fees-profit-and-data-2722536" target="_blank" rel="nofollow">Mike Beauchamp - Vice President, Digital Marketing &amp; Technology&nbsp;</a></li><li><a href="https://www.linkedin.com/in/kevinvandiver?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hooters-franchise-costs-fees-profit-and-data-2722536" target="_blank" rel="nofollow">Kevin Vandiver - Chief Procurement Officer</a></li><li><a href="https://www.linkedin.com/in/jeff-caplan-55350a3?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hooters-franchise-costs-fees-profit-and-data-2722536" target="_blank" rel="nofollow">Jeff Caplan - Chief Information Officer</a>&nbsp;</li><li><a href="https://www.linkedin.com/in/acleek?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-hooters-franchise-costs-fees-profit-and-data-2722536" target="_blank" rel="nofollow">Alisa Pittman Cleek - Chief Legal Officer</a></li></ul><h4>What Helpful Articles Can I Read to Learn More About Hooters?</h4><ul><li><a href="https://1851franchise.com/is-hooters-a-profitable-franchise-investment-2716418">Is Hooters a Profitable Franchise Investment?</a></li><li><a href="https://1851franchise.com/new-hooters-owners-plan-a-more-family-friendly-spinoff-concept-2710410">New Hooters Owners Plan A More Family-Friendly Spinoff</a></li><li><a href="https://1851franchise.com/hooters-emerges-as-the-latest-restaurant-franchise-facing-a-lawsuit-around-consumer-accessibility-2711419#stories">Hooters Emerges as the Latest Restaurant Franchise Facing a Lawsuit Around Consumer Accessibility</a></li></ul>Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

Franchise Deep Dive: Hooters Franchise Costs, Fees, Profit and Data

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