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Hoots® franchise — is it worth it?

Quick-service restaurant · FDD-based assessment · registered 2024

High risk Growing network

Hoots® is a quick-service restaurant franchise with a high-risk profile due to significant franchisee litigation and a lack of financial performance transparency.

Everything below is free, read straight off Hoots®'s registered filing. Weighing Hoots® against other options? Get a free shortlist of franchises that fit your budget.

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Total initial investment
—
FDD Item 7
Initial franchise fee
—
FDD Item 5
Royalty
5%
FDD Item 6
Item 19 earnings
Not disclosed
no franchisor earnings
Litigation (Item 3)
8 cases
in Item 3
Closure rate
0%
quick-service restaurant median 2.9%
Outlet network
12 units
+3 last year

Figures above are as disclosed in Hoots®'s most recent FDD (registered 2024). Source: California Dept. of Financial Protection and Innovation — Franchise Registration · filing app-28520 — check it yourself. See every other California-registered franchise.

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Hoots® franchise profit — what the FDD discloses

Plainly: Hoots® does not disclose franchise profit or revenue. Its most recent FDD makes no Item 19 financial performance representation, so there is no franchisor-backed earnings figure for Hoots® — any number quoted elsewhere is an estimate, not a disclosure. The absence is itself worth weighing (56% of quick-service restaurant franchisors in our corpus do disclose); the fees, litigation and outlet churn Hoots®'s FDD does contain are on this page. For brands that put earnings on paper, see Fast food & quick-service restaurant franchises with disclosed Item 19 earnings.

Hoots® lawsuits & legal history (FDD Item 3)

Hoots®'s most recently filed Franchise Disclosure Document (2024) does disclose 8 legal proceedings in Item 3 . Item 3 is the item where a franchisor must put its material legal history on the record. Two things it is not: it covers the franchisor and its predecessors, parents and affiliates, so a disclosed case is not necessarily a suit against Hoots® itself; and a disclosure is a fact, not a finding of wrongdoing — most entries are contract disputes with former franchisees, which every large system accumulates. 8 of those proceedings were brought by franchisees against the franchisor — the split that actually matters, because franchisees suing their franchisor is the signal a buyer is looking for. Item 3 of the source FDD describes each case.

Hoots® closures & failure rate

Before you sign, Hoots® will hand you a list of current owners to call as references — and they choose who's on that list. It won't include the owners who quit, got bought out, or were forced out last year. The FDD does report that number, even though the reference list leaves those people off. Below is what Hoots®'s most recent filing shows, and whether it's normal for a quick-service restaurant of this kind.

The closest thing an FDD has to a failure rate is Item 20 — outlet openings, closures, terminations and non-renewals, reported by the franchisor. Hoots®'s latest tables show a growing franchised network. Its franchised-outlet closure rate — closures, terminations and non-renewals against outlets — is 0%, against a quick-service restaurant median of 2.9% — at or better than the category. Net franchised outlets moved +3 to 12 in the latest reported year.

Who owns Hoots®?

Hoots®'s franchise is offered by Hoots Franchising, LLC — the franchisor named on the cover of its most recently filed Franchise Disclosure Document (2024), and the entity a franchisee actually signs with. That name comes straight off the filing at CA DFPI; it identifies the franchisor, not necessarily the ultimate parent company behind it.

Other quick-service restaurant franchises

Anyone weighing Hoots® is really weighing it against the other brands their money could go into. These are the closest by total initial investment (FDD Item 7), each with its own FDD-based page.

Al-Hamra$165,850 – $291,750Hot Chikn Kitchn$192,000 – $618,500 · Item 19 disclosedHickory River Smokehouse$315,000 – $674,500 · Item 19 disclosedA.b.'s Smokehouse$382,000 – $678,000Adamson's (Unit)$318,900 – $787,720 · Item 19 disclosedAbu Omar Halal$362,100 – $797,000 · Item 19 disclosedAfuri Ramen + Dumpling$591,000 – $1,153,0005 Tacos and Beers$764,500 – $1,527,000 · Item 19 disclosedA&W; A&W Restaurants; A&W All American Food$894,130 – $1,640,034 · Item 19 disclosedHuey Magoo's Chicken Tenders$1,111,600 – $2,893,500 · Item 19 disclosedHooters$1,253,300 – $4,697,000Al Manakeeshinvestment not disclosed · Item 19 disclosed

Hoots® franchise — frequently asked

Who owns Hoots® — who is the franchisor?

Hoots®'s most recently filed FDD (2024) names Hoots Franchising, LLC as the franchisor — the entity you would actually sign the franchise agreement with, as stated on the disclosure document itself. A registry filing names the franchisor, not necessarily its ultimate parent company.

How much does a Hoots® franchise cost?

Hoots®'s most recently filed FDD (Item 7) puts the total estimated initial investment at a range disclosed in Item 7 and a 5% royalty. That price is the franchisor's own estimate of what it takes to open, not a quote.

How much profit does a Hoots® franchise make?

Hoots® makes no Item 19 financial performance representation, so there is no franchisor-disclosed revenue or profit figure for Hoots® at all — and profit would never be disclosed even where earnings are, because it depends on your rent, labor and how you operate. Any profit figure quoted elsewhere is an estimate, not a disclosure.

Does Hoots® disclose financial performance (Item 19)?

No — Hoots®'s most recent FDD makes no Item 19 financial performance representation. Its absence is worth weighing: 56% of quick-service restaurant franchisors in our corpus do disclose.

Are there lawsuits against Hoots®?

Hoots®'s most recently filed FDD (2024) discloses 8 legal proceedings in Item 3. Item 3 covers the franchisor, its predecessors, parents and affiliates — so a disclosed case is not necessarily a suit against Hoots® itself, and a disclosure is not a finding of wrongdoing. 8 of the disclosed proceedings were brought by franchisees against the franchisor.

Is Hoots® a good franchise to buy?

Nobody can answer that from Hoots®'s numbers alone — it comes down to how its investment, earnings, litigation and franchisee churn stack up against quick-service restaurant peers and against your own budget. Our read on this filing is high risk. Every figure behind that read is on this page for free. If you're comparing options, the free shortlist on this page matches you with 5–10 franchises that fit your budget and industry.

Just watching Hoots®?

Get a free email when something changes on Hoots® or quick-service restaurant: a new FDD registration, a new lawsuit, an outlet count that shifts, or Item 19 earnings going from undisclosed to disclosed. Pulled straight from the same state registries this page is built on.

This report compiles and structures publicly filed Franchise Disclosure Document (FDD) data from state franchise registrations. It is not legal, financial, or investment advice, is not affiliated with or endorsed by any franchisor, and does not replace reading the full FDD or consulting a franchise attorney or accountant. All figures are as disclosed by the franchisor in its most recent registered FDD. Item 19 financial performance representations are made at the franchisor’s option and may be absent or limited.