The Hot Spot
The Hot Spot franchise operates do-it-yourself arts and crafts studios featuring activities like pottery painting, candle making, canvas painting, mosaics, succulent gardens, body scrubs, and slime. Franchisees run single-location businesses in high-traffic areas such as shopping malls, utilizing the franchisor's proprietary system for operations, training, inventory, and marketing. The target market includes families seeking family-friendly creative experiences, particularly parents providing painting instruction, camps, and birthday parties for children ages 4-12, as well as adults for events.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
5% royalty (or monthly minimum $100-$300) + 1% brand fund (up to 2%) + $500/mo local marketing minimum + up to $150/mo internal systems fee
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: 3 affiliate-owned studios, as of December 31, 2024.
* Averages calculated from three affiliate-owned studios (Tahoe, California; Liberty, California; Sparks, Nevada) based on their Jan-Dec 24 financial performance data. Gross Revenue is Total Income, Gross Profit is explicitly stated, and Net Income is explicitly stated.
Extracted Item 19 Section
How The Hot Spot Compares to Other Arts & Crafts Franchises
Key Insights
- One of the lowest investment costs in Arts & Crafts (ranked #2 of 6)
- Top 10 largest franchise system in Arts & Crafts
- Lower than average SBA loan default rate in Arts & Crafts
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
The Hot Spot Current | $80K - $155K | $40K | 5.0% | 6 |
| BOARD AND BRUSH CREATIVE STUDIO | $75K - $100K | $25K | 6.0% | 193 |
| COLOR ME MINE LLC | $180K - $438K | $30K | 5.0% | 112 |
| Pinot's Palette | $119K - $259K | $25K | 6.0% | 67 |
| Hawaii Fluid Art | $182K - $340K | $65K | 8.0% | 21 |
| Extreme Art Studio | $119K - $355K | $45K | 8.0% | N/A |
Arts & Crafts Average 6 franchises | $126K - $274K | $38K | 6.3% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 6 Arts & Crafts franchises by location count.
SBA Loan History
Historical SBA 7(a) loan data for The Hot Spot franchisees (2025 - 2025)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
Unlock Franchisee Contact Database
6 franchisee contacts on file. Upgrade to see names, locations, phone numbers, and matched SBA loan data.
Upgrade to Pro$199/year · Cancel anytime
Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a The Hot Spot franchise?
The total initial investment to open a The Hot Spot franchise ranges from $80,100 to $154,700. This includes a franchise fee of $39,500. Ongoing royalty fees are 5.0% of gross sales.
How much revenue does a The Hot Spot franchise make?
According to the 2025 FDD, the average gross revenue for a The Hot Spot franchise is $551,147.91.
How much profit can you make with a The Hot Spot franchise?
Based on the financial performance data in the FDD, estimated profit for a The Hot Spot franchise ranges from $124,902.04 to $124,902.04 per year. Actual results vary based on location, management, and market conditions.
How many The Hot Spot franchise locations are there?
As of the 2025 FDD, The Hot Spot has 6 franchise locations. The company has been franchising since 2023.
Can you get an SBA loan for a The Hot Spot franchise?
Yes, SBA loans are available for The Hot Spot franchises. Historical data shows 4 SBA 7(a) loans have been approved for The Hot Spot franchisees, with an average loan amount of $144,625. The historical default rate is 0.0%.
Is The Hot Spot a good franchise to buy?
The Hot Spot shows several positive indicators: transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in The Hot Spot?
Talk to a franchise advisor to get personalized guidance and learn if The Hot Spot is the right fit for you.
Talk to an Advisor