How much revenue does a The Hot Spot franchise make?

The Hot Spot does disclose financial performance data (Item 19) in their 2026 FDD, including average and median gross revenue figures. Get full access to see the exact revenue numbers and detailed financial breakdown.

Can you get an SBA loan for a The Hot Spot franchise?

Yes, SBA loans are available for The Hot Spot franchises. We have historical SBA 7(a) loan data on file including approval counts, average loan amounts, and default rates. Get full access to see the complete SBA loan history.

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.

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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.

FDD Year:

$83K–$156K

Since 2023

ServicesSparks, NVwww.thehotspotstudios.comDisclaimer

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Franchise Costs

Franchise Fee

$39,500

Initial Investment

$82,600 – $156,200

Royalty Rate

5.00%

Brand Fund

1.00%

Fixed Monthly Fees

$500 – $500

5% royalty + 1% ad fund + $500/mo local marketing

Financial Performance

Item 19 Financial Performance

Average Gross Revenue

$599,930.56

Average Net Income

$182,639.3

Average Gross Profit

$517,024.91

Data Based On: Financial performance for 3 affiliate-owned studios (company-owned) for the year ending December 31, 2024.

* Averages calculated from the financial performance of three company-owned (affiliate-owned) studios: Tahoe, California; Liberty, California; and Sparks, Nevada. Net Ordinary Income was used as Average Net Income.

Extracted Item 19 Section

Avg. Revenue: $599,931

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How The Hot Spot Compares

Key Insights

One of the lowest investment costs in Arts & Crafts (ranked #2 of 6)
Lower than average SBA loan default rate in Arts & Crafts

Franchise	Investment	Fee	Royalty	Locations
The Hot Spot Current	$83K – $156K	$40K	5.0%	0
BOARD AND BRUSH CREATIVE STUDIO	$75K – $100K	$25K	6.0%	193
COLOR ME MINE LLC	$219K – $475K	$30K	5.0%	124
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	$133K – $281K	$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.

Locations & Growth

Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2025)

Outlets by state across the United States

Top States

1California

2Florida

3Georgia

4Hawaii

5Idaho

6New Jersey

7New York

8North Carolina

9Oregon

10Pennsylvania

11Texas

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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.

4 SBA loans on record

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Franchisee Contacts

28 franchisee contacts on file from official FDD filings.

28 Contacts Available

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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

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Frequently Asked Questions

The total initial investment to open a The Hot Spot franchise ranges from $82,600 to $156,200. This includes a franchise fee of $39,500. Ongoing royalty fees are 5.0% of gross sales.