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 $404,180 to $1,485,310 (this range applies when you lease your land and building) depending on whether you are remodeling an existing restaurant or you are purchasing land and building from scratch. 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 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.

ExpendituresLow AmountHigh AmountMethod of PaymentWhen DueTo Whom Payment is to be Made
Totals$710,980$1,485,310
Initial Franchise Fee$25,000$25,000One PaymentWhen you Execute the Franchise AgreementHHI
Training Fee and Travel and Living Expenses While Training$11,990$14,990As ArrangedBefore OpeningSuppliers of Transportation, Food and Lodging
Real Estate (Land)$168,000$250,000As ArrangedAs ArrangedSeller
Site Development$143,000$270,000Progress PaymentsAs ArrangedContractors or Excavators
Improvements$130,000$505,000Progress PaymentsAs ArrangedContractors
Equipment and Seating$127,000$185,000Financed or As IncurredAs ArrangedVendors or HHI
Signs and Décor$32,000$90,000As ArrangedAs ArrangedVendors
Site Plan/Engineering Drawings$5,000$40,000As ArrangedAs ArrangedVendors
Smallwares, Opening Inventory and Uniforms$40,000$50,000As ArrangedBefore OpeningVendors or HHI
POS System$15,500$25,000Lump SumBefore OpeningVendors
Help Desk and Maintenance$245$275MonthlyBefore Opening and Monthly thereafterVendors
Computer Related Security Services$1,200$2,000AnnuallyBefore Opening and Annually thereafterVendors
Customer Feedback Program$45$45MonthlyMonthlyVendors
Miscellaneous Opening Costs$6,000$16,000Lump SumBefore OpeningVendors, HHI, Governmental Authorities, Utilities
Additional Funds-3 Months$6,000$12,000As IncurredAs IncurredEmployees and Vendors

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