Huddle House Franchise Costs, Fees & Owner Salary (2023)

Initial Franchise Fee ($25,000 - $35,000)

• The initial franchise fee for a single Huddle House restaurant is typically $35,000. However, if you qualify for Huddle House's incentive program, the fee may be reduced to $25,000.

Royalty (4.75% of Gross Sales)

• Franchisees are required to pay a continuing weekly royalty fee of 4.75% of their Gross Sales.

Advertising (4% of Gross Sales)

• Franchisees are required to contribute 3% of their Gross Sales to the advertising fund.
• The advertising fund is used to cover costs related to marketing, advertising, public relations, promotional programs and materials, and other activities that promote and enhance the image of the Huddle House System.
• Initiatives may include advertising through various media channels, in-store programs, community programs, loyalty programs, online ordering, promotions, and more.
• Franchisees are also required to spend at least 1% of their Net Sales on local advertising and promotional activities on a quarterly basis. However, there are periods when the company may require these monies to be contributed to the advertising fund instead.

For those considering a franchise opportunity with Huddle House, the investment varies based on the type of unit. The "New Development Unit," typically involving leasing the land and building while purchasing equipment and signs, requires an investment ranging from $561,635 to $1,443,175.

On the other hand, the "Non-Traditional Unit" demands an investment between $558,035 and $1,403,675. Below are detailed breakdowns of the investment:

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Huddle House, a prominent name in the franchise industry, stands out with its robust training program designed to equip its franchisees with the necessary skills and knowledge. Let's delve deeper into what Huddle House offers to its franchise partners.

Huddle House's commitment to excellence is evident in its extensive training period, which spans up to 40 days. The training is meticulously designed to cover all aspects of the franchise operations, ensuring that either the franchisee or their designated manager is well-versed with the brand's standards and operational procedures.

Beyond the initial training, the world of franchising is ever-evolving. Huddle House recognizes this and might require its franchisees to undergo additional training sessions.

Franchisees of Huddle House are granted the right to operate at a specific location. The rights provided are confined to the designated location. There is no mention of an exclusive territory being provided to the franchisees.

The franchise agreement also contains certain restrictive covenants. For instance, during the term of the agreement, neither the operator nor any third-party operator of the host facility can display or sell any type of food product that is similar to those sold at the unit. This ensures that the franchisee's operations remain distinct and in line with the brand's offerings.

The franchise must be operated either by the franchisee or by a designated manager. Huddle House recommends that franchisees personally supervise the operation of their franchise.

Additionally, during the first two months after the franchised business opens to the public, the franchisee or one of the owners with at least a 10% equity in the franchisee entity must serve as an on-premises designated manager for a minimum of 30 peak operating hours per week.

This designated manager must be certified by Huddle House as meeting its qualifications and must complete Huddle House's initial training program within 60 days of designation.