America's Iconic Breakfast Franchise

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What are my Startup Costs?

Huddle House is one of the most affordable breakfast franchises

For new restaurant development, Huddle House franchisees typically need a minimum liquidity of $200,000 and a minimum net worth of $600,000. Investments can range from $444,192 to $1,550,670 depending on whether you are leasing an end-cap strip center location or you are purchasing land and building a freestanding store. Investment costs are significantly lower for remodeling an existing restaurant or by reopening a formerly closed location.

One of our directors of franchise development can provide more detailed information. Here’s a look at the startup costs for when you lease your land and building, and purchase your signs, equipment, and improvements, as outlined in Item 7 of our latest Franchise Disclosure Document. Keep in mind these ranges include the lowest amount a franchisee invested in a Huddle House to the highest. Some franchisees lease the land. Huddle House franchisees not only enjoy cash flow from their restaurant operations, they may increase their potential equity by buying land and building a restaurant.

When you lease your location     
ExpendituresLow AmountHigh AmountMethod of PaymentWhen DueTo Whom Payment is to be Made
Totals$444,192 $796,670
Initial Franchise Fee$25,000 $35,000 One PaymentWhen you Execute the Franchise AgreementHHI
Training Fee and Travel and Living Expenses While Training12,50015,600As ArrangedBefore OpeningHHI for training fee, Suppliers of Transportation, Food and Lodging
Real Estate – First Month’s Rent4,5008,000MonthlyAs ArrangedThird-party Landlord
Improvements111,000374,000Progress PaymentsAs ArrangedContractors
Equipment and Seating87,000186,000Financed or As IncurredAs ArrangedVendors or HHI
Signs and Décor18,00051,000As ArrangedAs ArrangedVendors
Site Plan/Engineering Drawings5,00015,000As ArrangedAs ArrangedVendors
Travel Expenses for Opening Guide Meeting0750As ArrangedBefore OpeningSuppliers of Transportation, Food and Lodging
Smallwares, Opening Inventory and Uniforms40,00050,000As ArrangedBefore OpeningVendors or HHI
POS System15,50025,000Lump SumBefore OpeningVendors
Help Desk and Maintenance245275MonthlyBefore Opening and Monthly thereafterVendors
Computer Related Security Services9002,000AnnuallyBefore Opening and Annually thereafterVendors
Customer Feedback Program4545MonthlyMonthlyVendors
Miscellaneous Opening Costs6,00016,000Lump SumBefore OpeningVendors, HHI, Governmental Authorities, Utilities
Additional Funds-3 Months6,00018,000As IncurredAs IncurredEmployees and Vendors
When you buy your land and building     
ExpendituresLow AmountHigh AmountMethod of PaymentWhen DueTo Whom Payment is to be Made
Totals$781,992 $1,550,670
Initial Franchise Fee$25,000 $35,000 One PaymentWhen you Execute the Franchise AgreementHHI
Training Fee and Travel and Living Expenses While Training12,50015,600As ArrangedBefore OpeningHHI for training fee, Suppliers of Transportation, Food and Lodging
Real Estate (Land)168,000300,000MonthlyAs ArrangedThird-party Landlord
Improvements133,000549,000Progress PaymentsAs ArrangedContractors
Equipment and Seating91,000183,000Financed or As IncurredAs ArrangedVendors or HHI
Signs and Décor20,00068,000As ArrangedAs ArrangedVendors
Site Plan/Engineering Drawings8,00018,000As ArrangedAs ArrangedVendors
Travel Expenses for Opening Guide Meeting0750As ArrangedBefore OpeningSuppliers of Transportation, Food and Lodging
Smallwares, Opening Inventory and Uniforms40,00050,000As ArrangedBefore OpeningVendors or HHI
POS System15,50025,000Lump SumBefore OpeningVendors
Help Desk and Maintenance245275MonthlyBefore Opening and Monthly thereafterVendors
Computer Related Security Services9002,000AnnuallyBefore Opening and Annually thereafterVendors
Customer Feedback Program4545MonthlyMonthlyVendors
Miscellaneous Opening Costs6,00016,000Lump SumBefore OpeningVendors, HHI, Governmental Authorities, Utilities
Additional Funds-3 Months6,00018,000As IncurredAs IncurredEmployees and Vendors

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