Orion Food Systems Franchise FDD, Costs & Fees (2025)

Orion Food Systems is a franchisor of quick-service restaurant brands, including Hot Stuff Pizza, Chix Chicken, and Smash Hit Subs, offering a variety of delicious and convenient food options.

Orion Food Systems is a leading quick-service food franchisor specializing in nontraditional locations. Founded in 1982 in Sioux Falls, South Dakota, it remains headquartered in Sioux Falls. The company develops turnkey foodservice brands for convenience stores, hospitals, universities, airports, military bases, and shopping centers.

In 1993, Orion launched its franchising program to scale its innovative brand model. Since then, it has expanded to nearly 1,000 units, including several international locations.

Orion offers several proprietary food concepts, including Hot Stuff Pizza, Gourmet Grub, Chopz, and Chix Chicken. These brands are designed for small-format, high-traffic venues and offer a wide range of food items such as pizza, fried chicken, sandwiches, breakfast items, and snacks. The model is turnkey, with integrated equipment and streamlined operations.

What sets Orion apart is its focus on flexible models tailored for space-constrained locations.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Training Expenses $5,500 to $11,000
Leasehold Installation $1,500 to $7,000 each
Equipment, Fixtures and Furnishings including Installation Assistance $20,000 to $72,000
Opening Inventory $5,000 to $16,000
Security Deposits, Utility Deposits, Business Licenses and other Prepaid Expenses Varies by geographic area
Insurance $1,500 to $5,000
Additional Funds (first three months) $26,000 to $51,000
Contractor Expenses $2,500 to $10,000
Total $62,000 to $172,000

Franchise Disclosure Document

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Training

Orion Food Systems provides a structured training program to equip franchisees and their staff for successful operation of the Unit:

  1. Pre-Opening Training: Franchisees and their managers must complete Orion’s training program before the Unit opens. This includes classroom, on-the-job, and HACCP (Hazard Analysis Critical Control Points) training, typically totaling about 2 hours, with classroom training being 0.5 hours, on-the-job training 1 hour, and HACCP 0.5 hours.
  2. On-Site Instruction: The training is coordinated by Orion's Director of Sales Effectiveness or Field Training Manager and usually occurs at the franchise location. It involves a minimum of 30 trainer-hours over four days and includes the use of Orion’s System Manual and instructional video materials.
  3. Retraining Requirements: Orion may require retraining of franchisees or employees at its discretion. Any costs associated with such retraining are borne by the franchisee.
  4. Post-Opening Support: After opening, Orion continues to offer operational support, including assistance with marketing, inventory control, and product handling through periodic on-site visits. This ensures ongoing compliance with system standards and continuous improvement.

Territory Protection

Orion Food Systems does not offer any form of territory protection to its franchisees. The franchise is granted for a specific Host Facility only and not for an exclusive territory or geographic area.

This means franchisees may face competition from other Orion units, including those operated by other franchisees, the franchisor, or competitive brands controlled or supplied by Orion.

Furthermore, Orion explicitly states that no territorial rights or protected radius around the Host Facility are provided. Franchisees are allowed to solicit or accept orders from customers outside their general market area, indicating a fully open and non-exclusive operational model.

Number of units

2023
Franchised units

937

903

823

Company-owned units

0

0

0

Total units

937

903

823

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