The Hot Spot Studios Franchise Review & Verdict (2026)

Product details

Contents

Key facts


The Verdict

Quick Verdict · who it fits

The Hot Spot Studios fits first-time franchise buyers looking for an emerging child services concept.

✓ Strengths

⚠ Risks to review

Key FDD Facts

The numbers a buyer needs first — straight from the filing.

Initial investment (Item 7)

$83K - $156K

Franchise fee (Item 5)

$40K

Royalty (Item 6)

5% + 1–2% ad

System size (Item 20)

23 +17

Years in business

3+ yrs

Training (Item 11)

28 days

Company-owned units

3

Item 3 litigation

None disclosed

Model The Hot Spot Studios's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.

Buyer qualifications

•No exclusive territory✓No bankruptcy disclosed✓No Item 3 litigation

Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.

What you'd pay the franchisor

Drag to your projected annual sales. Royalty 5% + ad fund 1–2% on gross sales.

PROJECTED ANNUAL SALES$500,000

$100k$2M

Royalty (5%)

Ad fund (1–2%)

Total / year

▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration

Executive Summary

Free AI summary — the first read on the filing.

Key Numbers

26

Total units open

17 franchised units

Units opened last year

0

Units closed last year

17

Net unit growth

AI Due Diligence Findings PREMIUM

What our analysis flagged across the 2026 filing.

5

Risks to review

3

Strengths identified

4

Questions to ask

Industry Benchmarks

How The Hot Spot Studios ranks against 138 Child Services & Education peers we've analyzed.

Initial investment

33rd pct · of 138 peers

Franchise fee

29th pct · of 138 peers

System size

43rd pct · of 138 peers

Child Services & Education industry averages

Avg investment

$372K - $1.0M

Avg franchise fee

$46K

Avg system size

95

Franchises analyzed

138

How The Hot Spot Studios stacks up

Closest concepts by category and investment.

Brand Item 19 Fee Investment Royalty Units
The Hot Spot Studios Disclosed $40K $83K - $156K 5% 23
Soccer Buddies Franchising CopSimilar price Disclosed $50K $119K - $154K 8% 0
Kumon North AmericaBiggest system Disclosed $2K $102K - $234K 1,705
Uatp ManagementTop-rated in category Disclosed $100K $2.9M - $5.4M 7% 202

Compare side-by-side ↗

Not sure The Hot Spot Studios is the one?

Answer five questions and get matched against 2,000+ analyzed FDDs — including every Child Services & Education brand we cover. Free, no account needed.

Find My Match →

Franchise research guides

Free explainers to go deeper before you sign.

Get franchise information FREE

Frequently Asked Questions

How much does a The Hot Spot Studios franchise cost?

The Hot Spot Studios requires a $39,500 initial franchise fee and a total initial investment range of $82,600–$156,200, per the most recent FDD on file.

Who owns The Hot Spot Studios?

The Hot Spot Studios franchises are sold by The Hot Spot Studios LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the corporate structure, including any parent companies and predecessors.

Does The Hot Spot Studios disclose financial performance (Item 19)?

Yes. The Hot Spot Studios discloses Item 19 financial performance representations in its FDD. See the financials sub-page for the disclosed figures.

What ongoing fees does The Hot Spot Studios charge?

Franchisees pay a royalty of 5% and an advertising fund contribution of 1.0% to 2.0% on gross sales as defined in Item 6 of the FDD.

How many The Hot Spot Studios locations are there?

As of their 2026 FDD, The Hot Spot Studios has 23 total locations, with 17 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.

Does The Hot Spot Studios offer franchisee training and support?

Yes. The Hot Spot Studios' most recent FDD documents approximately 28 days of initial training, typically split between classroom and on-site components. See Item 11 of the FDD for the full training and support schedule.

Does The Hot Spot Studios grant exclusive territory?

No. The Hot Spot Studios does not grant exclusive territory rights under Item 12. The franchisor retains the right to operate or grant additional units inside or adjacent to your trade area.

What are the renewal and exit terms?

Per the FDD, The Hot Spot Studios discloses a renewal fee of $3,500, a transfer fee of $12,500. Review Items 10 and 17 for the full renewal and termination provisions.

Cite this page

Related on this site


This page is part of VetMyFranchise. View all pages: llms.txt · llms-full.txt

Site index for AI agents: llms.txt · sitemap