About Sam's Hot Dogs Franchise
Sam's Hot Dog Stand is a retail sandwich shop franchise specializing in hot dogs and other fast food sandwich products.
Franchisees operate a shop at a mutually agreed-upon location, serving quality beef wieners with a choice of special hot or mild ground beef meat sauce, along with condiments including mustard, coleslaw, onions, ketchup, soft drinks, potato chips, pork barbeque, spaghetti, cookies, and milkshakes.
The target customers are persons of all ages seeking quick-service American sandwich food.
Sam's Hot Dogs Franchise Cost & Fees
Minimum Investment
$32K
Average Investment
$45K
Maximum Investment
$59K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $15,000 | One-time payment upon signing |
| Royalty Fee | 4% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% of gross sales of prior month | National brand fund |
| Total Investment Range | $32,250 – $58,600 | Includes build-out, inventory, working capital |
The investment range of $32K–$59K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of Gross Sales) and marketing fee (3% of gross sales of prior month) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $15,000 | $15,000 |
| Working Capital | $1,500 | $2,000 |
| Opening Inventory | $1,500 | $2,000 |
| Rent | $6,600 | $8,000 |
| Leasehold Improvements | $4,000 | $16,000 |
| Equipment and Signage | $12,000 | $14,000 |
| Insurance | $300 | $600 |
| Additional Funds | $450 | $1,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $8,250 |
| Audit Fee | Cost of audit or auditor(s), understatement plus 1.5% interest per month |
| Required Purchases | Spice for hot dog sauce, due with each order |
| Late Charges | 18% per annum or maximum allowed by law |
| Cost and Attorney's Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to 3 days per segment, two segments |
| Classroom Training | None |
| On-the-Job Training | 3 days, 10 hours per day per segment (total approximately 60 hours) |
| Training Location | First segment at closest approved franchised shop; second segment at franchisee's own location |
| Additional Training | No refresher or additional training courses required after successful completion |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Usually limited to the site itself, an area within and consisting only of the shop |
| Description | The Territory is a specific location approved by the franchisor, usually limited to the site itself. The franchisor retains the right to locate, develop, operate, license or franchise another shop or similar business within the franchisee's Territory. Neither the franchisor nor franchisees are prohibited from soliciting or making sales by alternative distribution, including the internet. The franchisee will not receive an exclusive territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | 20 years |
| Renewal Conditions | Be in good standing with original and then-current agreement(s), remodel, sign new agreement(s), sign release. Written notice at least 2 years prior to expiration required. |
| Transfer Fee | $8,250 |
| Transfer Conditions | You sign guaranty and general release; pay fee of $8,250; complete your obligations to us; comply with Right of First Refusal provisions; assignee is qualified, signs new agreements and completes Training Program. |
| Termination for Cause | We can terminate if you default under the Agreement or any other agreement(s). 10 days to cure non-payment of fees/debts; 90 days to cure compliance with Agreement or Manuals. |
| Non-Compete Period | 1 year |
| Non-Compete Details | You may not be directly or indirectly involved with another sandwich business within 5 miles of an existing Company or franchised unit for a period of 1 year after termination or expiration. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee is required to personally participate in the direct operation of the shop as manager, cook, food preparer, counter attendant and cashier, devoting full time and best efforts. If owning more than one shop, a Central Manager may be designated for additional shops. |
| Required Suppliers | Franchisees must purchase proprietary pre-mixed hot and mild sauce Spices from the franchisor. Current price is $32.00 per packet (minimum 10 packs per order) plus $18.00 freight per 10 packs. Franchisees may also buy ready-made Sam's Hot Dog Sauce from approved vendors. |
| Supply Restrictions | Franchisees must follow franchisor standards and specifications for food, services, design, appearance, goods, supplies, fixtures, construction materials and equipment. Non-approved supplier use is a material breach of the Agreement. |
| Franchisor Revenue from Suppliers | From January 2023 to December 2023, total revenues from Spice sales were approximately $37,728, or 17% of total revenues. No other party derives revenue from Spice sales. The franchisor does not derive revenue from purchases of approved suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees. |
Sam's Hot Dogs Franchise Earnings — Item 19
Sam's Hot Dogs does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Sam's Hot Dogs does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Sam's Hot Dogs Litigation & Risk Flags
Clean Litigation RecordSam's Hot Dogs has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Sam's Hot Dogs System Growth
Total Units
42
Franchised
42
Company-Owned
0
Sam's Hot Dogs currently operates 42 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 5 | 1 | 43 |
| 2022 | 1 | 1 | 43 |
| 2023 | 0 | 1 | 42 |
Transfers: 4 | Closures: 1
State Registrations
Registered in 3 states: VA, WV, KY
Franchisor Financials (Item 21)
Revenue
$324K
Net Income
$93K
Total Assets
$463K
Audited by Donald V. Steger, Jr., CPA, PC for year ending December 31.
Sam's Hot Dogs Franchise — FAQ
The total investment to open a Sam's Hot Dogs franchise ranges from $32,250 to $58,600, per their Franchise Disclosure Document. This includes the initial franchise fee of $15,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Sam's Hot Dogs charges a royalty fee of 4% of Gross Sales of gross sales, plus a 3% of gross sales of prior month contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Sam's Hot Dogs Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Sam's Hot Dogs to ensure you have the most up-to-date version.
Sam's Hot Dogs does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Sam's Hot Dogs has been franchising since 1990. The FDD shows an investment range of $32,250-$58,600, a 4% of Gross Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $15,000 and the total investment ranges from $32,250 to $58,600 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Sam's Hot Dogs and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Sam's Hot Dogs or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com