What are my Startup Costs?

Start your own breakfast franchise for less than those other guys

When you take a look at the Huddle House franchise startup costs compared to the initial investment required by the competition, things stack up nicely. Starting your own Huddle House franchise costs less than franchises like IHOP and Denny’s, and is accessible, unlike corporate-owned Waffle House.

We have flexible restaurant formats, which means startup costs vary, ranging from $444,192 to $1,550,670. Factors that influence the startup costs include leasing vs. buying land and constructing a building, remodels on existing restaurants and openings of formerly closed locations. Item 7 from our latest Franchise Disclosure Document details some of the expenses you should anticipate:

ITEM 7. ESTIMATED INITIAL INVESTMENT

OPTION I: Standard Unit – Purchase of Land, Building, Signs and Equipment

YOUR ESTIMATED INITIAL INVESTMENT

Expenditures Low
Amount
High
Amount
Method of
Payment
Due Payment Made To
Initial Franchise
Fee
$25,000$35,000One PaymentWhen you
Execute the
Franchise
Agreement
HHI
Training Fee and
Travel and Living
Expenses While
Training
12,50015,600As Arranged Training fee
($4,990) before
construction start;
remainder before
opening
HHI (for training
fee); Suppliers,
Transportation,
Food and Lodging
Real Estate (Land)168,000300,000As ArrangedAs Arranged Seller
Site Development143,000270,000Progress PaymentAs Arranged Contractors or
Excavators
Improvements133,000549,000Progress PaymentsAs ArrangedContractors
Equipment and Seating 91,000183,000Financed or As Incurred As Arranged Vendors or HHI
Signs and Décor20,00068,000As ArrangedAs Arranged Vendors
Site
Plan/Engineering
Drawings
8,00018,000As ArrangedAs ArrangedVendors
Travel Expenses for
Opening Guide
Meeting
0750As ArrangedBefore OpeningSuppliers of
Transportation,
Food and Lodging
Smallwares,
Opening Inventory
and Uniforms
40,00050,000As ArrangedBefore OpeningVendors or HHI
POS System15,50025,000Lump SumBefore OpeningVendors
Help Desk and
Maintenance
245275MonthlyBefore Opening
and Monthly
thereafter
Vendors
Computer Related
Security Services
1,2002,000AnnuallyBefore Opening
and Annually
thereafter
Vendors
Customer Feedback
Program
4545MonthlyMonthlyVendors
Miscellaneous
Opening Costs
6,00016,000Lump Sum Before Opening Vendors, HHI,
Governmental
Authorities, Utilities
Additional Funds
Months
6,00018,000As IncurredAs Incurred
Totals$781,992$1,550,670

OPTION II: Standard Unit – Lease of Land, Building, Signs, and Equipment (Non-Resale Units and Resale Units)

YOUR ESTIMATED INITIAL INVESTMENT

ExpendituresLow AmountHigh AmountPayment MethodDuePayment
Made To
Initial Franchise Fee$25,000$35,000One paymentWhen you Execute the Franchise AgreementHHI
Training Fee and Travel and Living Expenses While Training12,50015,600As ArrangedTraining fee ($4,990) before construction start; remainder before openingHHI (for training fee); Suppliers, Transportation, Food and Lodging
Real Estate – First Month’s Rent4,5008,000MonthlyAs ArrangedHHI or third-party Landlord
Equipment – First Month’s Rent1,5003,500MonthlyAs ArrangedHHI or third-party Landlord
Signs-First Month’s Rent5001,000MonthlyAs ArrangedHHI or third-party Landlord
Smallwares, Opening Inventory and Uniforms40,00050,000As ArrangedAs ArrangedVendors or HHI
Travel Expenses for Opening Guide Meeting0750As ArrangedBefore OpeningSuppliers of Transportation, Food and Lodging
POS System15,50025,000Lump SumBefore OpeningVendors
Help Desk and Maintenance245275MonthlyBefore Opening and Monthly thereafterVendors
Computer Related Security Services1,2002,000AnnuallyBefore 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
Totals (for a non-Resale Unit)$112,990$175,170
Additional for Resale Only:
Business Good Will - For a Resale Unit Only$0$500,000
Totals for a Resale Unit$112,990$675,170

OPTION III: Standard Unit – Lease of Land and Building; Purchase of Equipment, Signs and Leasehold Improvements

ExpendituresLow AmountHigh AmountPayment MethodDuePayment
Made To
Initial Franchise Fee$25,000$35,000One PaymentWhen you Execute the Franchise AgreementHHI
Training Fee and Travel and Living Expenses While Training12,50015,600As ArrangedTraining fee ($4,990) before construction start; remainder before openingHHI (for training fee); Suppliers, 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
Totals$444,192$796,670

Find out now if you prequalify for franchise financing!

For more detail

If you’d like to learn more about the Huddle House startup costs for our different formats, please fill out this form to start a conversation. We’ll send you a link to a proprietary page with more details.