Hooters
The total investment to open a Hooters franchise ranges from $956,500 to $4.3M. The initial franchise fee is $75,000. Ongoing royalties are 5% plus a 2.5% advertising fee.
What is the Hooters franchise?
Hooters is a restaurant business serving wings, burgers, seafood and drinks to diners. The estimated total initial investment is $956,500 to $4,275,000, and the initial franchise fee is $75,000, according to the 2024 Franchise Disclosure Document.
The ongoing royalty is 5 percent of sales, and the advertising or brand fund fee is 2.5 percent. The franchise agreement term is 20 years.
Hooters was founded in 1983 and is headquartered in Atlanta, GA.
Loan Activity Score
30/100
SBA Default Rate
50.0%
Active Lenders
5
According to its Franchise Disclosure Document or public business records, Hooters has 6 locations, all owned by franchisees. Public SBA loan records show 5 lenders made 6 loans to franchisees of Hooters. PeerSense calculates Hooters's score as 30 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2024 Franchise Disclosure Document.
Franchising since 1983 · 6 locations
$956,500 to $4.3M
$75,000
6
6 franchised
Proprietary PeerSense metric
LimitedDistinct lenders in public SBA records for Hooters
6
Total SBA loans
$394K
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Hooters
Loan Activity Score Breakdown
Emerging (3 to 9 loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
50.0%
vs 10.3% peer avg
SBA Loans
6
Total Volume
$2.4M
Active Lenders
5
States
3
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Hooters based on SBA lending data
SBA Default Rate
50.0%
39.7% above peer avg
SBA Loan Volume
6 loans
Across 5 lenders
Lender Diversity
5 lenders
Avg 1.2 loans per lender
Investment Tier
Premium investment
$956,500 to $4,275,000 total
Hooters: Deep SBA Data
Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.
Peak SBA Year
1997
2 approvals. The best year on record for Hooters.
Top SBA State
New York
3 SBA financed Hooters locations, the densest operator footprint.
Average Loan Size
$394K
Median $259K. Use as a sizing anchor when modeling your own Hooters unit.
Lender Concentration
66.7%
Concentrated
Share of Hooters approvals captured by the top 3 SBA lenders.
Hooters's SBA lending pipeline peaked in 1997 (2 approvals). Operator density is highest in New York with 3 SBA financed locations. Average funded ticket sits at $394K, with the median at $259K. Lender mix is concentrated: the top three SBA lenders account for 66.7% of approvals. Credit decisions concentrate with a small group of incumbents.
Payment Estimator
Estimated Monthly Payment
$9,902
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
Hooters, unit breakdown
Explore Funding for Hooters
Our business financing consultants help connect you with the right lending partners. Referral fee paid at closing.
Or get an instant analysis
Scan Your Deal Instantly2 FDDs Available for Hooters
Review franchise fees, investment ranges, royalties, Item 19 financial data, and year over year trends. Request complimentary access through your PeerSense funding advisor.
Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman