Answers to common questions about owning a Huddle House franchise
What is Huddle House?
Huddle House is a Southern-style dining experience and community gathering spot that has been serving comfort food at a great value for five decades. At Huddle House, we serve breakfast, lunch and dinner, and our motto is “Any Meal. Any Time.”
What is the franchise fee?
The franchise fee is $25,000 and is due upon execution of the franchise agreement.
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 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 2.0% 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?
Experience is always helpful; however, it is not required. The Huddle House system has an excellent training program (5-9 weeks) 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, truck stops or motel/hotels, or can become high visibility end-cap locations in shopping centers.
How much space is needed for a Huddle House restaurant?
The freestanding prototype Huddle House is typically 2,200 square feet set on a lot between 25,000 and 30,000 square feet. For joint development, conversions and end-cap locations, we typically prefer 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 will support you 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 and architectural plans and obtain permits to build the 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 they may lease the premises in which the restaurant will operate.
How much will I make owning a Huddle House restaurant?
As for specific information about the potential sales, operating costs and profitability of a Huddle House franchise, 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 (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. We do, however, provide certain unaudited historical sales and cost information in Item 19 of our FDD. The FDD 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, 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 right for you.
What’s the next step?
You may fill out the form at right to download a free franchise report and receive a copy of the FDD. One of our franchise specialists will promptly review your information and contact you shortly to discuss next steps. The entire franchise qualification process may be completed within 90 days. Let’s get rolling!