Alabama has many claims to fame. The state’s rich history and culture birthed acclaimed novelists Harper Lee and Truman Capote. It boasts an unparalleled sports rivalry between the University of Alabama Crimson Tide and the Auburn University Tigers. Perhaps the most widely known claim to fame is Alabama’s Southern hospitality paired with good Southern food. It’s the reason there are so many restaurant franchise opportunities in Alabama.

Let’s consider some of the reasons franchise restaurant opportunities may thrive in Alabama by looking closer at what the Cotton State offers.

Is Alabama Good for Business?

Alabama may be well-suited for businesses looking to move into the state, particularly those looking for restaurant franchise opportunities. Aside from the state’s reputation for BBQ, breakfast, and Southern hospitality, the economic climate is friendly to businesses, and the state’s government is mindful of keeping the regulatory environment easy to navigate.


According to the Tax Foundation, residents in Alabama are subject to a graduated income tax ranging between 2% and 5%, which supports all income levels of those living in the state without overburdening one class of people. Alabama also has a 6.5% corporate income tax rate.

Alabama ranked 6th overall in Area Development Magazine’s Top States for Doing Business in 2021. A panel of economic development experts studied how states respond to what businesses seek out when looking for states to expand and ranked the states accordingly. Alabama also tied for 2nd with North Carolina for overall cost of doing business.

Some of the attributes of Alabama that make it attractive according to its rankings are:

  • Reasonable energy costs.
  • Strong business incentive programs.
  • Workforce development programs.
  • A favorable regulatory environment.
  • Speedy permitting to build a business presence.

Regulatory Environment for Franchises

As for restaurant franchise opportunities in Alabama, the state is not a franchise registration state. Separate filings are not required beyond the Federal Franchise Rule set by the Federal Trade Commission.

The Alabama Department of Revenue has resources to help you register your business. Your municipality may also require paperwork filing and permitting.  

Demographic Data

Additionally, Alabama is a Gulf Coast state with a robust tourism market. Mobile, Alabama is not only a beach town but also has the oldest Mardi Gras celebration in the country.

The state has over 5 million residents. One of Alabama’s most unique features is that it doesn’t have one or two major cities and the rest of the state is considered rural like many other states are set up. Alabama has 5 urban centers—Huntsville, Birmingham, Montgomery, Mobile, and Tuscaloosa. This spreads restaurant franchise opportunities in Alabama throughout a multitude of counties.

In addition, the university rivalries heat up to bring visitors from all over the country, and those hungry fans look for restaurant franchises in Alabama to satisfy their hunger after the big games.

Restaurant Franchise Opportunities in Alabama Bring the Food

The foods in Alabama are so good that they’re as famous around the country as Southern hospitality. The setting for the 1991 film Fried Green Tomatoes, one example of an Alabama food highlighted by pop culture, was inspired by the Irondale Café in Birmingham.

It’s no surprise that restaurant franchise opportunities in Alabama are worth considering. Take Huddle House, for example. Started 60 years ago in Georgia, the menu is chock full of Southern staples, like big, fluffy pancakes, flaky biscuits and gravy, grits, fried chicken, shrimp, fried pickles, and more.

Huddle House isn’t afraid to bring the flavor with both classics and new ideas, like stuffed hash browns, hearty bowls and wraps, and homestyle dinners reminiscent of a beloved family recipe

Huddle House also embraces the kind of service and value Alabamans expect, with legendary Southern hospitality and a hearty portion for the right price. It’s the type of restaurant franchise opportunity in Alabama that garners a loyal customer base because it fits well with the target audience.

Restaurant Opportunities in Alabama with Huddle House

Huddle House isn’t just popular with residents in Alabama because of the food. Many of our customers are brand loyalists because we go where there aren’t many other restaurant franchise opportunities in Alabama.

By design, Huddle House recognizes the underserved markets in less populous areas, where other restaurant franchise brands may not be willing to set down roots. We see these areas as untapped markets, and we’re able to serve customers in these areas because we’re flexible about what types of franchise models we offer.

Our franchise investors have the choice of operating non-traditional locations, such as:

  • In-line.
  • End cap.
  • Restaurant conversion.
  • Truck stop/travel plaza.

Additionally, we have opened distribution centers around the U.S. We’ve done this for multiple reasons, including maintaining a higher standard of quality ingredients, transporting inventory to more rural locations than just major city hubs, and controlling our supply chain to sustain our reasonable menu prices in a fluctuating economy.

For these reasons, our restaurant franchise opportunities in Alabama and other states are better because we can go where other restaurants cannot. Customers in these underserved areas appreciate us and make Huddle House their local hangout.

Our franchise owners benefit from a built-in customer base of brand ambassadors and the opportunity to scale up to multi-unit ownership. It’s a win for everyone!

If you’re considering restaurant franchise opportunities in Alabama, call us at Huddle House! You could become part of the legacy brand doing Southern hospitality right and has been from the start!