FRANCHISE·WATCH·DESK

Verified — real FDD extraction

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HOCCO

Other · independent · est. —

HOCCO is an ice cream and dessert brand whose outlets serve ice creams, sundaes, and related treats. A franchisee operates a dessert-focused quick-service location with counter ordering, serving walk-in customers in high-footfall retail settings.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Too new to judge

Distress

0
STABLE

1 franchised unit over 3 disclosed years is not a track record — systems this early have realized only a fraction of their eventual failures. Judge the disclosures, not a verdict.

Exit rate · latest year

Not disclosed

Cost to open

$524K–$1.2M

Item 7 total investment range

SBA loan defaults

No loan record

no SBA 7(a)/504 loans found for this brand

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Fair
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Strong
Transfer / churn15%

transfers vs. base · Table 3

Fair
Promise-keeping10%

actual vs. projected openings · Table 5

Weak
Transparency15%

Item 19 disclosure + completeness

Weak

Systemwide units

2022–2024

020220202312024

Survival record

FDD Item 20 · outlet status by year

In fiscal 2024, 0 of 0 franchised outlets left the system. Not every exit is a failure — but this is the measurable floor.

Show the outlet tables
Status (FTC)202220232024
Outlets at start000
Opened001
Transfers000
Terminations000
Non-renewals000
Reacquired by franchisor000
Ceased — other reasons000
Outlets at end001
Net change00+1

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

Buying in means a $30K franchise fee (Item 5) and a total investment of $524K–$1.2M (Item 7). The franchisor publishes no earnings claim (Item 19) — ask current and former franchisees for real numbers.

To open (Item 7)

$524K–$1.2M

all-in investment range

Franchise fee (Item 5)

$30K

upfront, one-time

Royalty (Item 6)

8%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — this brand discloses no Item 19 earnings; validate with current & former owners.

Royalty you'd pay / yr

$80K

8% of sales, before profit

Over a 10-yr term

$800K

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for HOCCO with an independent CPA

Distress signals

news-sourced · bankruptcies, closures, lawsuits

No recent closures, bankruptcies, or major lawsuits found in the news for HOCCO. That's a good sign — but it reflects news coverage, not a guarantee.

Before you sign anythingfree · 30 min · no commission

A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing HOCCO's numbers, including talking you out of a bad deal.

Talk to an independent CPA before you buy →

HOCCO franchise questions, answered from the filings

How much does a HOCCO franchise cost?

Per HOCCO's 2025 FDD, buying in requires an initial franchise fee of $30K (Item 5) and a total initial investment of $524K–$1.2M (Item 7).

What royalty does HOCCO charge?

HOCCO charges an ongoing royalty of 8.0% of gross sales, per Item 6 of its 2025 FDD.

Does HOCCO disclose earnings (Item 19)?

No — HOCCO's 2025 FDD makes no financial performance representation in Item 19. That is legal and common, but it means the franchisor publishes no earnings claim; ask current franchisees for real numbers.

Is HOCCO a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk