Binghamton HOTS franchise
2023 filing · April 29, 2023Shares sales figures
Binghamton HOTS at a glance
A quick-serve restaurant serving burgers, hot dogs, subs and hot plates topped with its own hot sauce, plus soups and salads, for lunch, dinner and late night. At the end of 2022 there were 1 Binghamton HOTS locations in the US, all company-owned.
The business
- Franchisor
- Hots Franchise Group, Inc
- The company that sells the franchises
- Franchisor based in
- Binghamton, New York
- Typical size
- 1,800–2,400 sq ft
What you pay
- Cost to open
- $142K–$253K
- Fee, build-out and opening working capital
- Franchise fee
- $25,000
- Paid once, when you sign
- Royalty
- 5%
- 5% of gross sales, paid weekly, plus 0.5% to the brand development fund (up to 2%) and 1% on local marketing
- Brand fund
- 0.5%
- 0.5% of gross sales, paid with the royalty; it can rise to 2%
- Agreement length
- 10 years
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2022
- 1
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 1
- Change in 3 years
- 0
- Franchised locations, 2020–2022
From Hots Franchise Group, Inc’s 2023 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Binghamton HOTS among all franchises with the same figure.
| Figure | Binghamton HOTS | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $197,425 | Costs less than 70% of franchises |
| Franchise feePaid once, when you sign | $25,000 | Lower than 82% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 1 | Fewer than 88% of franchises |
How much a Binghamton HOTS franchise costs
Opening one Binghamton HOTS costs an estimated $141,775 to $253,075. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements ($30,000 to $75,000) and equipment, furniture and fixtures ($35,000 to $65,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $25,000 | ||
| Rent – 3 Months | $5,400 | $10,500 | |
| Lease & Utility Security Deposit | $2,800 | $4,000 | |
| Design & Architect Fees | $3,000 | $4,000 | |
| Leasehold Improvements | $30,000 | $75,000 | |
| Signage | $1,000 | $4,000 | |
| Equipment, Furniture and Fixtures | $35,000 | $65,000 | |
| Point of Sale & Computer Equipment | $4,000 | $5,000 | |
| Business Licenses & Permits (Not Including Beer & Wine License) | $1,000 | $2,000 | |
| Professional Fees | $2,500 | $5,000 | |
| Insurance – 3 Months | $2,275 | ||
| Initial Inventory | $4,000 | $6,000 | |
| Training Expenses | $3,000 | $5,000 | |
| Grand Opening Marketing | $2,500 | $5,000 | |
| Technology Fee – 3 Months | $300 | ||
| Additional Funds – 3 Months | $20,000 | $35,000 | |
| Total | $141,775 | $253,075 | |
Source: Hots Franchise Group, Inc, 2023 filing, page 18
Binghamton HOTS franchise fee
The franchise fee is $25,000. You pay it when you sign the franchise agreement.
Source: Hots Franchise Group, Inc, 2023 filing, page 10
Royalty and ongoing fees
| Royalty | 5% of gross sales, paid weekly, plus 0.5% to the brand development fund (up to 2%) and 1% on local marketing. |
|---|---|
| Brand or marketing fund | 0.5% of gross sales, paid with the royalty; it can rise to 2%. |
| Technology Fee | $100 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Hots Franchise Group, Inc, 2023 filing, page 11
Other fees as filed, from page 16. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Binghamton HOTS publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Hots Franchise Group, Inc, 2023 filing, page 50
- Estimate Estimated yearly sales per location
- $410K–$720K
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Binghamton HOTS compares
Of the 63 burger franchises on this site, Binghamton HOTS is the 2nd cheapest to open and the 60th largest by number of locations.
| Figure | Binghamton HOTS | Typical burger brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $142K | $556K | $222K |
| Cost to open, high end | $253K | $1.52M | $477K |
| Franchise fee | $25K | $35K | $40K |
| Royalty | 5% | 5% | 6% |
| Brand fund | 0.5% | 2% | 2% |
| US locations | 1 | 25 | 21 |
| Shares earnings figures | Yes | 44 of 63 | 2,147 of 3,352 |
Typical is the median across the 63 brands in burger franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 0 (0) | 1 | 0 | 0 |
| 2021 | 0 (0) | 1 | 0 | 0 |
| 2022 | 0 (0) | 1 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating. The company-owned restaurant is run by the franchisor's affiliate.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: burger franchise costs and franchise failure rates.
Source: Hots Franchise Group, Inc, 2023 filing, page 52
Who owns Binghamton HOTS?
Binghamton HOTS franchises are sold by Hots Franchise Group, Inc. Its filing names no parent company.
From Hots Franchise Group, Inc’s 2023 filing, page 7.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Hots Franchise Group, Inc, 2023 filing, litigation on page 10, bankruptcy on page 10
Binghamton HOTS filings
The figures on this page come from Hots Franchise Group, Inc’s 2023 filing, issued April 29, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | April 29, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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