OTH Franchising LLC Franchise
Cost, fees, owner earnings, closure rate and litigation for a OTH Franchising LLC franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
OTH Franchising LLC discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
10 affiliate/franchised outlets' 2025 gross revenue, COGS, imputed royalties. Cherry-picks affiliate performance; no franchisee-only net income data provided.
What a OTH Franchising LLC franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $50,000 | Item 5 — paid up front, before you open |
| Royalty | 7% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 1% 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 | $359,360 – $1,062,000 | Item 7 — franchisor's own low/high estimate |
Royalty 7% (min $1,200-$2,100/week); Brand Fund 1%; required local marketing 5% or $750 min; multiple ancillary fees (training, transfer, relocation, interim management).
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
OTH Franchising LLC system size and owner turnover
| Total outlets | 10 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 1 |
| Closure rate | 0.0% of outlets |
Early-stage system (5 franchised outlets, 3-year history). 1 reacquisition by franchisor in 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 OTH Franchising LLC worth it? — how it compares to 164 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $359,360 | cheaper than most (median $481,500) |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 0.0% of outlets | better than most (median 1.3%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a OTH Franchising LLC
The franchisor's framing: 10 affiliate/franchised outlets' 2025 gross revenue, COGS, imputed royalties. Cherry-picks… 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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OTH Franchising LLC franchise — frequently asked
- How much does a OTH Franchising LLC franchise cost?
- The FDD lists a total initial investment of about $359,360–$1,062,000, including a $50,000 initial franchise fee.
- How much do OTH Franchising LLC franchise owners make?
- 10 affiliate/franchised outlets' 2025 gross revenue, COGS, imputed royalties. Cherry-picks affiliate performance; no franchisee-only net income data provided. We grade this disclosure D for honesty.
- What are the OTH Franchising LLC franchise fees?
- OTH Franchising LLC's FDD discloses a $50,000 initial franchise fee, a 7% royalty on gross sales, a 1% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. Royalty 7% (min $1,200-$2,100/week); Brand Fund 1%; required local marketing 5% or $750 min; multiple ancillary fees (training, transfer, relocation, interim management).
- What is the OTH Franchising LLC franchise profit margin?
- OTH Franchising LLC does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 10 affiliate/franchised outlets' 2025 gross revenue, COGS, imputed royalties. Cherry-picks affiliate performance; no franchisee-only net income data provided. 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 OTH Franchising LLC franchise failure rate?
- Early-stage system (5 franchised outlets, 3-year history). 1 reacquisition by franchisor in 2025.
- How many OTH Franchising LLC locations are there?
- OTH Franchising LLC's FDD reports 10 total outlets, with 0 that ceased operations in the most recent reporting year and 1 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does OTH Franchising LLC have complaints or lawsuits?
- OTH Franchising LLC 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 OTH Franchising LLC franchise worth it?
- It depends on the numbers, not the pitch. OTH Franchising LLC scores D 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 OTH Franchising LLC to similar franchises
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with OTH Franchising LLC or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.