FAQ – Huddle House Franchise Opportunities

Thinking about owning a restaurant franchise with strong community appeal? Our FAQ answers the most common questions about Huddle House franchise costs, support, and revenue potential, so you can see if this family dining franchise is right for you.

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ICONIC BREAKFAST FRANCHISES:

Look No Further Than Huddle House.

    Investment & Financial Requirements

    How much does it cost to open a Huddle House franchise?

    The initial investment ranges from $576,310 to $1,421,175, which includes the $35,000 franchise fee. This covers build-out, equipment, initial inventory, and working capital. (Source: FDD, Item 7)

    What are the financial qualifications to qualify as a franchisee?

    You’ll need a minimum liquidity of $250,000 and a net worth of $500,000 to meet our franchisee requirements. These financial standards help ensure new owners are well-prepared for both startup and early operations.

    What is the franchise fee?

    The franchise fee is $35,000 per restaurant.

    Fees & Royalty Structure

    What ongoing fees will I pay as a franchise owner?

    • Royalty fee: 4.75% of Net Sales
    • Advertising fee: 3% of Net Sales
    • Local advertising requirement: 1% of Net Sales

    These contributions support national marketing campaigns, local promotions, and continuous brand growth.

    Operational Terms & Support

    What is the term of the franchise agreement?

    The standard term is 15 years, with the option to renew for three additional 5-year terms.

    Do I need restaurant or franchise experience?

    Not necessarily. While restaurant experience can be helpful, it’s not required. Many successful owners come from diverse professional backgrounds. What matters most is business drive, leadership, and dedication.

    What kind of support does Huddle House provide?

    Franchisees receive:

    • Training on operations, service, and management
    • Site selection and build-out guidance
    • Pre-opening support and grand opening assistance
    • Ongoing marketing, supply chain, and business coaching

    Locations & Territory

    What types of locations are ideal for Huddle House?

    Traditionally, Huddle House restaurants thrived in small towns and suburban markets. Today, the brand is also expanding into larger, more densely populated areas.

    Can I propose a location?

    Yes. Even if it’s outside listed available territories, you can suggest a site. Many successful Huddle House locations began as franchisee-proposed ideas.

    Will I receive a protected territory?

    Yes. Each franchisee is granted a protected territory, outlined in the Franchise Disclosure Document (FDD).

    Performance & Revenue Expectations

    How much can a Huddle House franchise make?

    Performance varies by location, but here are benchmarks from our FDD:

    • The top 10% of franchised locations in 2022 reported average net sales of $754,116.
    • The bottom 10% of locations reported average net sales of $323,754. Keep in mind: results depend on management, location, and market conditions.

    When can I expect to break even?

    While results vary, many owners reach break-even between 12 to 24 months, depending on sales and expenses.

    What challenges should I expect?

    Like any restaurant franchise, common challenges include labor management, food cost control, and competition. Huddle House provides systems and support to help you manage these effectively.

    Process & Next Steps

    What are the steps to becoming a franchisee?

    1.  Complete our franchise inquiry form
    2. Connect with our development team
    3. Review the Franchise Disclosure Document (FDD)
    4. Attend Discovery Day at our headquarters
    5. Sign the franchise agreement and begin site selection

    How do I get started?

    Fill out our Request Franchise Info form and a member of our team will guide you through the next steps.