The Hot Spot Studios
Entertainment & Recreation · Family Entertainment
- Active units
- 23
- Royalty
- 5.0%
Franchised, year-end 2025
of weekly Net Sales
About The Hot Spot Studios
Welcome to The Hot Spot! Our creative studios offer a range of projects for all ages and skill levels, including pottery painting, succulent gardens, candle making, mosaics, canvas painting, and slime. No experience necessary, just bring your imagination and we'll provide all the supplies. Whether you're looking for a family outing, a date night, or a group gathering, we've got something for everyone. Our friendly staff will guide you through the creative process, ensuring you have a fun and relaxing experience. And if you're interested in owning your own creative studio, we offer franchising opportunities. Come to The Hot Spot, where we "Make" memories and help you unleash your creativity. Visit one of our locations and dive into the world of art and imagination today!
Key terms
- Franchise fee
$40k
- Second outlet discount
$7,500 discount on the Initial Franchise Fee for franchisees in good standing who open a second outlet
- Third or subsequent outlet discount
$10,000 discount on a third or subsequent outlet
- Brand fund
1.0% of Net Sales
- Local advertising
500.0% of Net Sales
- Footprint
1,200 – 2,000 sq ft
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2024, 2025, 2026.
Growth
- Total locations23
Franchised units open at year-end
- New openings17
Gross new units opened during the calendar year
- 1-year unit growth rate283.3%
Net unit growth versus prior year
- 3-year unit CAGR—
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio17.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate8.4%
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$119k
Midpoint of estimated initial investment range
↓ Lower is better - Time to open120 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate5.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.