Hounds Town Franchise
Cost, fees, owner earnings, closure rate and litigation for a Hounds Town franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Hounds Town discloses earnings (Item 19) — but the grade is how honestly. We graded it A.
What their own earnings claim actually says
74 locations (73 franchised, 1 affiliate) reported. Revenue ranges $92.6K-$1.36M. Excludes 22 new units, 1 shelter-partnership location. Net operating income avg $152K, median $155K.
What a Hounds Town franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $49,000 | 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 | $667,610 – $1,122,153 | Item 7 — franchisor's own low/high estimate |
6% royalty, 2% brand fund, $125-333/month technology, $5k-8.3k/month local ads months 1-90.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Hounds Town system size and owner turnover
| Total outlets | 97 |
| Ceased operations | 1 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 1.0% of outlets |
1 ceased operations 2025. Highest outlet count growth: +22 (2024), +20 (2025).
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Hounds Town worth it? — how it compares to 47 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $667,610 | pricier than 83% of peers |
| Disclosure honesty | Grade A | more honest than 98% of hair, beauty & personal care franchises |
| Closure rate | 1.0% of outlets | worse than 70% of peers |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every hair, beauty & personal care franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Hounds Town
The franchisor's framing: 74 locations (73 franchised, 1 affiliate) reported. Revenue ranges $92.6K-$1.36M. Excludes… 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
See a full sample report → · 30-day guarantee
Hounds Town franchise — frequently asked
- How much does a Hounds Town franchise cost?
- The FDD lists a total initial investment of about $667,610–$1,122,153, including a $49,000 initial franchise fee.
- How much do Hounds Town franchise owners make?
- 74 locations (73 franchised, 1 affiliate) reported. Revenue ranges $92.6K-$1.36M. Excludes 22 new units, 1 shelter-partnership location. Net operating income avg $152K, median $155K. We grade this disclosure A for honesty.
- What are the Hounds Town franchise fees?
- Hounds Town's FDD discloses a $49,000 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% brand fund, $125-333/month technology, $5k-8.3k/month local ads months 1-90.
- What is the Hounds Town franchise profit margin?
- Hounds Town does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 74 locations (73 franchised, 1 affiliate) reported. Revenue ranges $92.6K-$1.36M. Excludes 22 new units, 1 shelter-partnership location. Net operating income avg $152K, median $155K. 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 Hounds Town franchise failure rate?
- 1 ceased operations 2025. Highest outlet count growth: +22 (2024), +20 (2025).
- How many Hounds Town locations are there?
- Hounds Town's FDD reports 97 total outlets, with 1 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 Hounds Town have complaints or lawsuits?
- Hounds Town 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 Hounds Town franchise worth it?
- It depends on the numbers, not the pitch. Hounds Town scores A on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.
Own a Hounds Town? Add your real numbers (anonymous)
We publish only aggregated benchmarks — never your name. Contribute and we'll show you how your numbers compare.
Compare Hounds Town to similar franchises
See all franchises ranked by disclosure honesty →
Source: MN CARDS 36414-202604-08 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Hounds Town or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.