Franchise FAQs
Q. Who is Huddle House?
A. Huddle House is a family-style restaurant chain, and community gathering spot, that has been serving quality food at a great price for more than 47 years! The Huddle House brand has been franchising since 1966. At Huddle House, we have a variety of breakfast, lunch and dinner menu items and our customers may order “Any Meal. Any Time.”
Q. What is the Franchise Fee?
A. The Franchise Fee is $25,000 and is paid upon execution of the Franchise Agreement.
Q. What is the term of the franchise agreement?
A. The initial term of the Franchise Agreement is 15 years. The agreement is renewable for three additional 5-year terms.
Q. What is the royalty rate?
A. The royalty rate is 4.75% of gross sales, exclusive of sales tax, and is paid weekly.
Q. Is there an advertising contribution?
A. Yes; the current advertising contribution is 1.5% of gross sales, exclusive of sales tax, and is paid weekly. This provides many valuable benefits to franchisees, such as covering the cost of actual advertising materials you will use in your restaurants and in print advertising to your local customers, field marketing assistance, Local Store Marketing guidance, Public Relations and social media assistance and menu research and development.
Q. Does Huddle House provide financing?
A. We do not provide direct financing; however, we have a list of lenders that are familiar with Huddle House and are interested in communicating with our franchisees regarding their lending needs. Huddle House also is included on the SBA’s Franchise Registry, which provides a more streamlined review process.
Q. Is previous restaurant experience required?
A. Experience is always helpful; however, it is not required. The Huddle House system has an excellent training program (7-9 weeks) designed to teach new franchisees of all backgrounds the essentials of running a Huddle House restaurant franchise. Many franchisees recruit General Managers that have experience in the restaurant industry.
Q. Is there a charge for the training program?
A. No; the training is included as part of your Franchise Fee. However, lodging, food, and other travel expenses incurred during training are the responsibility of the franchisee.
Q. What types of restaurants are available?
A. Huddle House is adaptable and can be built in our freestanding prototype, as a conversion of an existing restaurant, in joint developments with c-stores, truck stops or motel/hotels, or in high visibility end cap locations in shopping centers.
Q. How much space is needed for a Huddle House restaurant?
A. The free standing prototype Huddle House is a building of approximately 2200 square feet and requires a lot of size between 25,000 and 30,000 square feet. For joint development, conversions and end cap locations we typically need sites with a minimum of 2400.
Q. How much space is needed for a Huddle House restaurant?
A. It is the responsibility of the franchise owner to acquire a suitable location; however, we will work with you during the site selection process. All sites must be accepted by Huddle House.
Q. Does Huddle House provide a site and construct the building for the new franchise?
A. Huddle House will assist in site selection for the franchisee and provide specifications for construction and equipment. However, it is the franchisee’s responsibility to work with an engineer and architect to develop site plans, architectural plans, obtain permits and build their restaurant. All sites must be accepted by Huddle House and all final plans and specifications must be accepted by our Construction and Equipment Team. A franchisee may either purchase or lease the land and building, or may lease the premises in which the restaurant will operate.
Q. How much will I make owning a Huddle House restaurant?
A. Before you can make an investment in any business or franchise opportunity, it is important to understand the sales and profit potential of that opportunity. The purpose of establishing this information is, of course, to allow you to make an informed decision regarding how appropriate that investment is for you. You will need to gather information from a variety of sources. Advisors, such as an accountant and attorney, are both useful and appropriate in establishing some of the costs involved in the operation of a business in you area. Other sources of information may be local utility companies and product wholesalers or vendors.
In regard to specific information about the potential sales, operating costs, and profitability of a franchise, Huddle House or otherwise, it is advisable to contact existing franchise owners to learn first hand of their experience. Huddle House will provide you with a list of our franchise owners via the Franchise Disclosure Document ("F.D.D."). We do not require our franchise owners to provide you with their personal financial information, but it has been our experience that many of them are willing to share information about their businesses and how they do, and their satisfaction with both the concept and franchisor.
No employee of Huddle House may furnish any specific oral or written information regarding the potential sales, costs income, or profits of a new Huddle House franchise other than that provided in our F.D.D. The intent of this policy is consistent with our commitment not to, in any way, mislead a potential franchisee; also, with the intent of the Federal Trade Commission that each investor should make an independent investigation as to the profitability of a business opportunity and how it applies to their particular situation. We do, however, provide certain unaudited historical sales and cost information in item 19 of our F.D.D. The F.D.D. also contains sample agreements such as our Franchise and Development Agreements.
Many factors must be considered in determining potential earnings and profits. Some of the factors that affect your profitability include sales volume, location, size of restaurant, competition, and managerial skill, dedication, and drive. After a thorough investigation of our franchise program, you should have the data necessary to make an informed business decision as to whether investing in a Huddle House Restaurant franchise is compatible with attaining your personal business and financial goals.
Q. Should I form a corporation or partnership to own the franchise?
A. Based upon the advice and counsel of your accountant and/or attorney, you may wish to establish some type of business entity to own the property and/or franchise. We recommend that you seek the advice of professionals early in the qualification process.
Q. Is the franchise transferable?
A. Yes; you may sell or transfer your franchise to a buyer that is approved by Huddle House.
Q. I’m excited to learn more! What’s the next step?
A. Please visit our website to learn more about the company and our franchise qualification process. You may download the franchise application directly from the website. Once you submit that to us, we will promptly review your information and contact you again to discuss next steps! The entire franchise qualification process may be completed within 90 days. Let’s get rolling!