FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Hounds Town, Inc..
Based on 2024 FDD · 2 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Hounds Town, Inc. franchise shows an estimated initial investment of $4K – $26K. The franchisor does not provide enough Item 19 data for a clean profit estimate. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $0 franchise fee · 26% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
Hounds Town, Inc. requires a total initial investment of $4K to $26K (midpoint approximately $15K), with an initial franchise fee of $0. The ongoing fee burden is 26% (25% royalty plus 1% advertising fund). This is above the industry average of approximately 15.5%, which warrants careful scrutiny of the value delivered for the fees charged.
Hounds Town, Inc. does not publicly disclose Item 19 financial performance data in their FDD. This is a significant transparency gap — franchisees must rely on validation calls and personal research rather than audited financial representations. Prospective buyers should demand current unit-level financials from existing operators during due diligence.
Hounds Town, Inc. operates approximately 196 franchised units. The SBA 7(a) loan default rate of 0.0% is well below the industry average of approximately 7.2%, indicating strong franchisee financial outcomes.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2024 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2020-2026). 81 loans across 24 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
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