Hole In The Wall Franchise
Cost, fees, owner earnings, closure rate and litigation for a Hole In The Wall franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
Hole In The Wall discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
One affiliate-owned Orlando location reported $1.18M revenue, $364.7K adjusted net income (31% profit). Franchisee data unavailable due to insufficient operating history.
What a Hole In The Wall franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $59,500 | Item 5 — paid up front, before you open |
| Royalty | 6% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $82,500 – $130,300 | Item 7 — franchisor's own low/high estimate |
6% royalty + 2% marketing fund + $5K launch support. Minimum monthly royalty $500-$2,250 depending on unit count and year.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Hole In The Wall system size and owner turnover
| Total outlets | 3 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 0.0% of outlets |
No terminations/cessations. Only 2 franchised units opened in 2024; minimal track record.
From Item 20 of the FDD 2025. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Hole In The Wall worth it? — how it compares to 436 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $82,500 | cheaper than most (median $138,750) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 0.0% of outlets | better than most (median 1.5%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Hole In The Wall
The franchisor's framing: One affiliate-owned Orlando location reported $1.18M revenue, $364.7K adjusted net income … We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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Hole In The Wall franchise — frequently asked
- How much does a Hole In The Wall franchise cost?
- The FDD lists a total initial investment of about $82,500–$130,300, including a $59,500 initial franchise fee.
- How much do Hole In The Wall franchise owners make?
- One affiliate-owned Orlando location reported $1.18M revenue, $364.7K adjusted net income (31% profit). Franchisee data unavailable due to insufficient operating history. We grade this disclosure C for honesty.
- What are the Hole In The Wall franchise fees?
- Hole In The Wall's FDD discloses a $59,500 initial franchise fee, a 6% royalty on gross sales, a 2% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. 6% royalty + 2% marketing fund + $5K launch support. Minimum monthly royalty $500-$2,250 depending on unit count and year.
- What is the Hole In The Wall franchise profit margin?
- Hole In The Wall does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: One affiliate-owned Orlando location reported $1.18M revenue, $364.7K adjusted net income (31% profit). Franchisee data unavailable due to insufficient operating history. Recurring fees alone take about 8% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Hole In The Wall franchise failure rate?
- No terminations/cessations. Only 2 franchised units opened in 2024; minimal track record.
- How many Hole In The Wall locations are there?
- Hole In The Wall's FDD reports 3 total outlets, with 0 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Hole In The Wall have complaints or lawsuits?
- Hole In The Wall discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Hole In The Wall franchise worth it?
- It depends on the numbers, not the pitch. Hole In The Wall scores C on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Hole In The Wall to similar franchises
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Source: MN CARDS 34303-202506-16 (Clean FDD 2025). FranchiseValidate is independent and not affiliated with Hole In The Wall or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.