Little Sheep Hotpot franchise
2024 filing · July 5, 2024Growing
Little Sheep Hotpot at a glance
A restaurant serving Inner Mongolian hotpot cooked at the table in a pot of herb and spice broth. At the end of 2023 there were 1 Little Sheep Hotpot locations in the US, all franchised.
The business
- Franchisor
- Little Sheep Hong Kong Holdings Company Limited
- The company that sells the franchises
What you pay
- Cost to open
- $796K–$1.94M
- Fee, build-out and opening working capital
- Franchise fee
- $50,000
- Plus a $50,000 service fee under a separate service agreement
- Royalty
- 5%
- A maintenance fee of 5% of all revenues, paid monthly
- Brand fund
- Yes
- 1%-3% of revenue once a fund is set up
Where it is
- US locations, 2023
- 1
- Franchised and company-owned
- Franchised
- 1
- Company-owned
- 0
- Change in 2 years
- +1
- Franchised locations, 2021–2023
- States
- 1
- Most in New Jersey
From Little Sheep Hong Kong Holdings Company Limited’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Little Sheep Hotpot among all franchises with the same figure.
| Figure | Little Sheep Hotpot | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $1,366,750 | Costs more than 88% of franchises |
| Franchise feePaid once, when you sign | $50,000 | Higher than 70% 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 Little Sheep Hotpot franchise costs
Opening one Little Sheep Hotpot costs an estimated $796,000 to $1,937,500. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements (after landlord allowances) ($300,000 to $600,000) and liquor license ($500 to $400,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $50,000 | ||
| Service Fee | $50,000 | ||
| Deposit | $15,000 | ||
| Rent (3 months); Lease; Utility and Security Deposits | $10,000 | $50,000 | |
| Design & Architectural Fees | $15,000 | $45,000 | |
| Restaurant Décor and Signage | $8,000 | $20,000 | |
| Leasehold Improvements (after Landlord allowances) | $300,000 | $600,000 | |
| POS System Fee | $3,000 | $10,000 | |
| Equipment | $100,000 | $300,000 | |
| Furniture & Fixtures | $7,500 | $20,000 | |
| Initial Inventory | $100,000 | ||
| Business License and Permits | $50,000 | $100,000 | |
| Liquor License | $500 | $400,000 | |
| Professional Fees, Dues and Deposits | $20,000 | $80,000 | |
| Restaurant Insurance | $5,000 | $10,000 | |
| Initial Training Expenses | $0 | ||
| Grand Opening Advertising | $7,500 | ||
| Additional Funds 3 Months | $55,000 | $80,000 | |
| Total | $796,000 | $1,937,500 | |
Source: Little Sheep Hong Kong Holdings Company Limited, 2024 filing, page 18
Little Sheep Hotpot franchise fee
The franchise fee is $50,000, plus a $50,000 service fee under a separate service agreement. You pay it when you sign the franchise agreement.
Source: Little Sheep Hong Kong Holdings Company Limited, 2024 filing, page 12
Royalty and ongoing fees
| Royalty | A maintenance fee of 5% of all revenues, paid monthly. |
|---|---|
| Brand or marketing fund | 1%-3% of revenue once a fund is set up. |
| Technology Fee | $200 per month |
| Transfer Fee | $5,000 |
| Additional Training Fee | up to $1000 per day per trainee |
| Local Marketing Requirement | Currently 3% of Revenues, will not exceed 3% |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Little Sheep Hong Kong Holdings Company Limited, 2024 filing, pages 13 and 14
Other fees as filed, from pages 13–16. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Little Sheep Hotpot does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Little Sheep Hong Kong Holdings Company Limited, 2024 filing, page 42
- Estimate Estimated yearly sales per location
- $1.2M–$2.2M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Little Sheep Hotpot compares
Of the 813 restaurant franchises on this site, Little Sheep Hotpot is the 634th cheapest to open and the 737th largest by number of locations.
| Figure | Little Sheep Hotpot | Typical restaurant brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $796K | $408K | $222K |
| Cost to open, high end | $1.94M | $866K | $477K |
| Franchise fee | $50K | $35K | $40K |
| Royalty | 5% | 5% | 6% |
| US locations | 1 | 14 | 21 |
| Shares earnings figures | No | 474 of 813 | 2,147 of 3,352 |
Typical is the median across the 813 brands in restaurant franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 0 (0) | 0 | 0 | 0 |
| 2022 | 0 (0) | 0 | 0 | 0 |
| 2023 | 1 (+1) | 0 | – | – |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: Little Sheep Hong Kong Holdings Company Limited, 2024 filing, page 44
Where Little Sheep Hotpot locations are
At the end of 2023, Little Sheep Hotpot had franchised locations in 1 state. The most are in New Jersey.
- New Jersey1
| State | Franchised |
|---|---|
| New Jersey | 1 |
Source: Little Sheep Hong Kong Holdings Company Limited, 2024 filing, page 44
Who owns Little Sheep Hotpot?
Little Sheep Hotpot franchises are sold by Little Sheep Hong Kong Holdings Company Limited.
From Little Sheep Hong Kong Holdings Company Limited’s 2024 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on page 12. |
|---|---|
| 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: Little Sheep Hong Kong Holdings Company Limited, 2024 filing, litigation on page 12, bankruptcy on page 12
Little Sheep Hotpot filings
The figures on this page come from Little Sheep Hong Kong Holdings Company Limited’s 2024 filing, issued July 5, 2024, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | July 5, 2024 | NASAA depository | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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