Answers to common questions about owning a Huddle House franchise
What is the term of the franchise agreement?
The initial term of the franchise agreement is 15 years. The agreement is renewable for three additional 5-year terms.
What is the franchise fee?
The franchise fee is $25,000 for a single unit and is due upon execution of the franchise agreement.
What is the royalty rate?
The royalty rate is 4.75% of net sales (sales minus any discounts). Please refer to the Franchise Disclosure Document for more information.
Is there an advertising contribution?
Yes; the current advertising contribution is 2.5% of net sales. This covers the cost of such items as in-store merchandising materials, local print coupons, local restaurant marketing guidance, public relations, and social media, as well as menu research and development and other services.
Does Huddle House provide financing?
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 is also included on the SBA’s Franchise Registry, which provides a more streamlined review process.
Is previous restaurant experience required to own a Huddle House breakfast restaurant franchise?
Restaurant experience is not required to own a Huddle House franchise. Our comprehensive training program (5-9 weeks) is designed to teach new franchisees from all backgrounds the essentials of running a Huddle House restaurant franchise. Many franchisees recruit General Managers who have experience in the restaurant industry.
What types of locations work for Huddle House?
Huddle House is adaptable and can be built as a freestanding restaurant, can be converted from an existing restaurant, can be constructed in joint developments with c-stores, travel centers or motel/hotels, or can become high visibility end-cap locations in shopping centers.
How much space is needed for a Huddle House breakfast franchise?
The freestanding prototype Huddle House with 85 seats is typically 2,500 square feet set on a lot between 25,000 and 30,000 square feet. For joint development, conversions and end-cap locations, we require sites with a minimum of 2,400 square feet.
Does Huddle House provide a site and construct the building for the new franchise?
Huddle House real estate specialists will support you in site selection and lease negotiation if necessary, and our Construction and Design project managers will provide specifications for construction and equipment and remain involved during your build-out phases. However, it is the franchisee’s responsibility to work with a local engineer and architect to finalize architectural plans, obtain permits to build the restaurant, and select an experienced general contractor for building construction. 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 they may lease the premises in which the restaurant will operate.
How much will I make owning a Huddle House restaurant?
While we cannot tell you how much you will make, we do provide certain unaudited historical sales and cost information in Item 19 of our Franchise Development Agreement (FDD). The FDD also contains sample Franchise and Market Development Agreements. You will review a copy of the FDD with a franchise specialist as part of your due diligence process.
Many factors must be considered in determining your specific potential earnings and profits. Some of the factors that affect your profitability include projected sales volume, location, size of restaurant, competition, managerial skill, dedication and drive.
It is also 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 FDD. 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.
What’s the next step?
You may fill out the form below to download a free franchise report and speak with one of our franchise specialists to discuss next steps. If you are ready to fast-track your process, click here to complete our full Franchise Application. The entire franchise due diligence process may be completed within 90 days. Let’s get rolling!