The ESOP Association named it the #1 ESOP in its Western division in 2003. There are 1,400 employees in 110 locations. This team is preparing to open one of the 15 Muscle Beach Lemonade stores, while another team across town is busy serving up customers at the Hot Dog on a Stick store in La Jolla, California. Founder Dave Barham started the business in 1946 on the beach in Santa Monica, California. Freddie Thode is president.

FREDDIE: We are 100-percent employee-owned. When Dave passed away in 1991, Dave left the company to his employees.

Unidentified Employee #1: We just finished up a batter. I'm going to take it over to the batter bowl and for safety purposes and also to give the audience a real show, I'm going to say, `Batter up.'

FREDDIE: The way that Hot Dog on a Stick actually got started was Dave bought a small little cooker and had some oil in it and floated the hot dogs on top after he dipped it in his mother's corn bread batter.

Unidentified Employee #1: We're going to start with two fresh turkey hot dogs. Dip them into our founder's mother's corn bread batter. Pull it straight up for all the customers to see. Cross over. Bring your elbows in.

FREDDIE: I think our product is good because we serve it fresh. We never, ever use a heating tray.

Unidentified Employee #1: And they cook for about three minutes. FREDDIE: The lemonade is something that is very special. It accounts for 55 percent of all of our sales.

HATTIE: Why does your lemonade taste so great?

Unidentified Employee #2: Well, when we stomp it, we're stomping the oils out of the lemon rinds and it gives it that special kick that everybody loves. You can smell the lemonade and you can smell the flavor in it. We like to serve it without a lid. Lots of samples of lemonade go out.

HATTIE: (Voiceover) Hot Dog on a Stick employee owners love their uniforms and because of the famous hat, there is never a bad hair day. Unidentified Employee #3: You get up in the morning. You might be running a little late. You don't even have to think twice. You just throw on your uniform and go. And it's definitely a good plus. Unidentified Employee #4: Look for foreign parts. Keep it nice and clean, everybody.

HATTIE: (Voiceover) Everyone sees their job as a performance for the customers. Unidentified Employee #1: Giving the customers a show all the time.

HATTIE: (Voiceover) Hot Dog on a Stick was the first food store in a mall. In 1972, Dave Barham convinced a mall owner in Murray, Utah, to rent him space.

FREDDIE: There was no food court. There was nothing like this. Dave was definitely a pioneer.

HATTIE: When did he get the `Aha. Guess what? No one lives forever. How do I make sure my company lasts beyond me?'

FREDDIE: He wanted to leave the company in the hands of people that could take it and make it survive for the next generation. About a year before Dave passed away, he started putting together a succession plan and the plan ended up to be an employee ownership plan.

HATTIE: Did he do research, call attorneys, go to the Beyster Institute? How did he come up with the ESOP idea?

FREDDIE: Fortunately for all of us, he had a very good attorney that advised him and we also brought in a great ESOP administrator who was able to help put that together. By the way, those two people still work with Hot Dog on a Stick.

HATTIE: The attorney and the ESOP administrator?

FREDDIE: The attorney and the ESOP administrator. It is a wonderful thing to know that they knew Dave and they knew the dream that he had that someday this would carry on-- his legacy would live forever. And I believe that that will happen because of what he did.