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.

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.

Locations

$80K–$155K

Investment

Since 2023

Franchising

ServicesSparks, NVwww.thehotspotstudios.comDisclaimer

Franchise Costs

Franchise Fee

$39,500

Item 5 of FDD

Initial Investment Range

$80,100 – $154,700

Low: $80,100High: $154,700

Item 7 of FDD

Royalty Rate

5.00%

of gross sales

Brand Fund

1.00%

Item 6 of FDD

Fixed Monthly Fees

$500 – $650

Item 6 of FDD

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

Financial Performance

Item 19 Financial Performance

Average Gross Revenue

Average Net Income

Average Gross Profit

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

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	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)

Total Loans

Average Loan

$144,625

Total Volume

$0.6M

Default Rate

0.0%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

Franchisee Contacts

6 franchisee contacts on file from official FDD filings.

Name	Address	Phone	Email	SBA Loan
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active

6 Contacts Available

Unlock all The Hot Spot franchisee contacts with verified contact information

Due Diligence

Litigation (Item 3)

Franchisee Cases0

No litigation involving franchisees reported

Bankruptcy (Item 4)

Bankruptcy HistoryNo

No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations

Non-Renewals

Reacquired

Ceased Ops

Transfers

Sold to Franchisees

Projected New

Frequently Asked Questions

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.