Huddle House provides potential franchise owners with an exciting opportunity to create something unique that will be both financially profitable and long-lasting. Start your own Huddle House franchise and benefit from small-town attractiveness and a strong brand culture, all while being supported by a system that has seen over 50 years of success.
For almost five decades, Huddle House has provided customer happiness and franchisee success. In addition to this, its brand is widely recognized in the areas they serve.
As per statistics, food franchises such as Huddle House make up over 60% of the direct employment provided by franchises and 30% of all franchise businesses in the U.S.
How much does a Huddle House franchise cost?
Here are the requirements and conditions that you need to meet before opening a Huddle House franchise:
- Financial Requirements
The initial investment for franchising a Huddle House ranges from $483,000 to $1,174,000, which includes the franchise fee of $40,000. Franchisees must also have a minimum net worth of $600,000 and liquid assets of $200,000.
Huddle House prefers franchisees to have previous restaurant experience, although it is not a requirement. The franchisee must also be willing to participate in an extensive training program provided by Huddle House.
Huddle House requires franchisees to secure a location for their restaurant that meets the company’s site requirements. These requirements include a location with high visibility, high traffic counts, and easy accessibility.
- Franchise Agreement
Before opening a Huddle House franchise, franchisees must sign a franchise agreement with the company. The agreement outlines the terms and conditions of the franchise, including the franchise fee, royalty payments, and advertising contributions.
Huddle House provides an extensive training program to all new franchisees, which includes classroom and on-the-job training. The training covers all aspects of operating a Huddle House restaurant, including food preparation, customer service, and marketing.
- Ongoing Support
Huddle House provides ongoing support to its franchisees, including field support from a franchise business consultant, regional meetings, and access to an online portal with resources and support.
Franchisees are required to contribute to a national advertising fund, which is used for marketing and advertising campaigns that benefit all Huddle House locations. Franchisees are also responsible for local marketing and advertising efforts.
|Huddle’s House Franchise Price and Costs|
|Huddle’s House Franchise Fee||$40,000|
|Huddle’s House Franchise Cost||$4,83,000-$11,74,000|
|Term of Agreement||15 years|
|Is franchise term renewable?||Yes|
|Renewable Franchise Fees||$5,000|
How much do Huddle House franchise owners make?
The income of a franchise owner of Huddle House can vary widely depending on several factors such as location, size of the restaurant, local competition, and the owner’s management skills. It’s important to note that owning a franchise comes with inherent risks, and success is not guaranteed.
According to Huddle House’s franchise disclosure document (FDD) for 2021, the average gross sales for a Huddle House restaurant in 2020 was $956,350. However, this number can vary depending on the specific location and other factors.
The FDD also reports that the average net income for a Huddle House franchisee in 2020 was $95,559. However, this number does not account for all expenses, such as royalties, advertising fees, rent, and other operational costs.
What is Huddle House franchise profit?
According to Huddle House’s franchise disclosure document (FDD) for 2021, the average net income for a Huddle House franchisee in 2020 was $95,559.
I will analyze the franchise profit of Huddle House and years to recoup the investment (ROI). To estimate the potential profit and ROI for a franchise, it’s important to consider additional expenses and calculate the expected revenue based on the specific location and market conditions.
|AUV||Estimated Annual Profit (12.5%)||Estimated Annual Profit (15%)||Estimated Annual Profit (18%)|
|$712,428||$ 89,053||$ 106,864||$ 128,237|
|Recoup mid-point$998,742||11 years||9 years||7 years|
The estimated Brand franchise profit is in the range of $89,053 to $128,237, and it will take 7 to 11 years to recoup the investment.
According to industry standards, getting a return on the franchise investment will take a very long time.
It’s important to do thorough research and speak with current and former franchisees before making any investment decisions. Additionally, Huddle House provides a wealth of information to potential franchisees through their website and other resources.
Huddle House Franchise Requirements
Minimum Net Worth Required is $600,000. While there fails to be given any data with reference to the cash requirements of a Huddle House franchise, other financial requirements are provided in the article below.
What are Huddle House franchise reviews?
Huddle House reviews can be mixed, as is typical of any franchise organization. Here is an overview of some of the most common comments from franchisees and customers:
- Established brand
Many franchisees appreciate the established brand and reputation of Huddle House, which can help drive traffic to their restaurants.
- Strong support system
Many franchisees note that Huddle House provides strong support and resources to franchisees in areas such as training, marketing, and site selection.
- Menu and operations
Many franchisees appreciate the standardized menu and operations system that Huddle House has in place, which can help ensure consistency and streamline the process of running a restaurant.
- High costs
Many franchisees cite the high costs associated with owning a Huddle House franchise, including initial investment, ongoing fees, and inventory costs.
- Limited geographic presence
Some franchisees note that Huddle House’s geographic footprint is limited compared to other franchise restaurant chains, which can make it difficult to expand and grow their businesses.
Some franchisees report that the restaurant industry is highly competitive, and that owning a Huddle House franchise requires significant effort and investment to compete with other well-established restaurant chains and independent restaurants in their area.
Huddle’s House Franchise Rankings
Huddle House rankings can vary depending on the source and the specific criteria being evaluated. Here are a few rankings and accolades that Huddle House has received in recent years:
- Franchise 500: In 2021, Huddle House was ranked #311 on Entrepreneur’s Franchise 500 list, which evaluates franchise opportunities based on factors such as growth potential, brand strength, and franchisee support.
- Top 200 Food and Restaurant Franchises: Huddle House was ranked #153 on Entrepreneur’s 2021 list of top food and restaurant franchises.
- Top 100 Movers and Shakers: In 2019, Huddle House was named one of the top 100 Movers and Shakers in the restaurant industry by FastCasual.com.
- Best Franchises to Buy: In 2019, Huddle House was ranked #43 on Forbes’ list of best franchises to buy.
What is the Huddle House?
Huddle House is a popular full-service restaurant chain that specializes in serving breakfast, lunch, and dinner in a casual dining atmosphere. Founded in 1964 by John Sparks in Decatur, Georgia, Huddle House has since expanded to over 330 locations across the southeastern United States. Huddle House has built a reputation for its hearty, homestyle meals, friendly service, and 24/7 availability, making it a popular destination for customers looking for a satisfying meal at any time of day.
According to Nation’s Restaurant News, Huddle House is ranked #86 on their list of the Top 200 restaurant chains in the US, based on systemwide sales in 2020. Huddle House has a strong presence in the Southeastern United States, where it is ranked as the #1 full-service breakfast chain in several states, including Georgia, Mississippi, and Tennessee.
Is Huddle House a Franchise Opportunity?
Huddles House can be a good franchising opportunity in the US and potentially in other countries, but it ultimately depends on several factors, including the local market conditions, competition, and regulatory requirements.
In the US, Huddle House has a strong brand reputation and a loyal customer base, which can be advantageous for franchisees who want to tap into an established market. However, like any franchise opportunity, success also depends on the franchisee’s ability to manage their business effectively, control costs, and adapt to changing market conditions.
As for expanding outside of the US, Huddle House currently only operates in the United States and has not announced any plans to expand internationally. However, in theory, the franchise could potentially be successful in other countries, as long as the local market is receptive to the restaurant’s menu offerings and brand image.
|Huddle’s House Franchise Review and Information|
|Industry Type||Food Franchise Opportunities|
|Sub Category||Full-service breakfast and diner-style restaurants|
|Company Name||Huddle House, Inc.|
|Founder/Management Head||John Sparks (founder) Michael Abt (current CEO)|
|Employees at Company H.O||Approximately 50 employees|
|Franchise Expansion Plan||Huddles House has plans to continue expanding its franchisees’ network in the Southeastern United States and other select markets in the US.|
|Number of Units||334 locations across 23 states in the US.|
|Number of Franchise Units||Same as number of units|
|Social Media Handles|
|Company Office location||5901 Peachtree-Dunwoody RoadBldg. C, Suite 300Atlanta, GA 30328, USA|
Huddle House training to franchise
Huddle House is a popular restaurant chain in the United States that offers comfort food and a cozy dining experience. The company provides training and support to its franchisees to ensure that they can successfully operate their own Huddle House locations. The process for training and supporting franchisees typically involves several steps, including the following:
- Initial Screening and Qualification
Prospective franchisees must first complete an application process and meet certain qualifications, such as having a minimum net worth and liquid assets.
- Franchise Disclosure Document (FDD)
Once a franchisee has been approved, they will receive the Franchise Disclosure Document (FDD), which contains detailed information about the Huddle House franchise system, including the franchisor’s history, financial statements, franchisee obligations, and other important information.
- Pre-Opening Training
Before a new franchise location can open, the franchisee must complete a comprehensive pre-opening training program that covers all aspects of operating a Huddle House restaurant. This typically includes training on food preparation, customer service, marketing, and other key areas.
How is Huddle House territory granted to franchise?
The company provides support and resources to franchisees to ensure that they can successfully operate their own Huddle House locations. Here are some details about the operations of Huddle House franchises:
- Location Selection
Huddle House works with its franchisees to identify and secure appropriate locations for their restaurants. The company has a team of real estate professionals who help franchisees find suitable sites, negotiate leases, and manage the construction process.
- Training and Support
Huddle House provides comprehensive training and support to its franchisees to help them operate their restaurants effectively. This includes pre-opening training, on-site training, ongoing support, and access to educational resources and training materials.
- Menu and Operations
Huddle House has a standardized menu and operating system that all franchisees must follow. The company provides its franchisees with recipes, food preparation guidelines, and operational procedures to ensure consistency across all locations.
Huddle House provides its franchisees with access to a range of technology tools and resources to help them manage their businesses more effectively.
- Quality Control
Huddle House has a rigorous quality control program in place to ensure that its franchisees are delivering high-quality food and service to their customers.
What is the Huddle House Term of Agreement and Renewal?
the initial term of the franchise agreement is 15 years. The franchisee has the option to renew the agreement for two additional terms of 10 years each, provided that the franchisee meets certain conditions specified in the agreement, including payment of renewal fees, compliance with the terms of the agreement, and adherence to the Huddle House system standards.
Does Huddle House provide Financial Assistance to Franchises?
Huddle House is a franchisor that provides support and resources to franchisees who operate their own Huddle House restaurants. While they may offer financial assistance to franchisees in certain circumstances, the specific terms and conditions of any financial assistance programs offered by Huddle House can vary based on a variety of factors.
Some examples of financial assistance that Huddle House may provide to franchisees include:
Huddles House may offer financing options to franchisees who need help securing the capital required to open a new restaurant. These financing options could include loans or other forms of financial assistance that would be provided by Huddle House directly or through a third-party lender.
- Lease assistance
Huddles House may help franchisees negotiate lease agreements with landlords or provide support in finding suitable locations for new restaurants. They may also offer rent abatement or other financial incentives to franchisees who are struggling to meet their lease obligations.
- Marketing support
Huddles House may provide marketing support to franchisees in the form of advertising and promotional materials, which could help drive traffic to their restaurants and increase revenue.
- Training and development
Huddles House may provide training and development opportunities to franchisees that can help them improve their business operations and financial performance. This could include training on topics such as budgeting, inventory management, and financial reporting.
Pros and cons of owning a Huddle House restaurant
Owning a franchisee of Huddles House can offer a range of benefits and challenges. Here are some of the key pros and cons to consider when evaluating the potential of becoming a Huddle House franchisee:
- Established brand
Huddle House is an established brand that has been in operation for over 50 years, with a strong presence in the southern United States.
- Support and resources
Huddle House provides support and resources to franchisees in areas such as site selection, restaurant design and layout, training, and marketing.
- Menu and operations
Huddle House has a standardized menu and operations system that has been refined over time.
- Multiple revenue streams
Huddle House offers multiple revenue streams beyond just dining in, including takeout, delivery, and catering, which can help increase your revenue potential.
- Initial investment
Owning a franchise requires a significant initial investment, including franchise fees, real estate costs, equipment, and inventory.
- Ongoing fees
In addition to the initial investment, franchisees must pay ongoing royalties and advertising fees to Huddle House.
- Competitive industry
The restaurant industry is highly competitive, and owning a franchise may require you to compete with other well-established restaurant chains and independent restaurants in your area.
Franchise deck overview of Huddle house
Here is an overview of the elements that might be included in a franchise deck for Huddles House:
- Brand and Concept
Huddles House is a family-friendly restaurant chain that specializes in Southern-style breakfast, lunch, and dinner offerings. The franchise brand is known for its warm and welcoming atmosphere, friendly service, and affordable prices.
- History and Background
Huddle House was founded in 1964 and has since grown to become a well-known and respected restaurant brand with over 300 locations across the United States.
- Franchise System
Huddles House offers a flexible franchise system that allows franchisees to customize their restaurant to suit their local market and customer preferences. The franchise fee is $40,000, and ongoing royalties are 4% of gross sales.
- Training and Support
Huddles House provides franchisees with comprehensive training and support to help them succeed. This includes a 5-week training program that covers all aspects of restaurant operations, ongoing operational support from a dedicated Franchise Business Consultant, and marketing and advertising support to help franchisees drive traffic to their restaurants.
- Operations and Systems
Huddles House has a standardized menu and operations system in place to help ensure consistency and quality across all franchise locations. The menu includes a variety of Southern-style breakfast, lunch, and dinner offerings, as well as a kids’ menu and a range of beverages.
The initial investment for franchising Huddles House ranges from $690,000 to $1,400,000, depending on factors such as location and restaurant size. Franchisees should have a net worth of at least $600,000, with $200,000 in liquid assets.
Potential Risks to consider before investing in a Huddle House Franchise
Here are some potential risks to consider before investing in a Huddle House franchise:
The restaurant industry is highly competitive, and there may be other restaurants in the local market that offer similar types of cuisine or target the same customer demographic. This could impact the profitability of the franchise, especially if there are multiple competitors in the immediate area.
The success of a Huddle House franchise can be heavily dependent on location. If the franchise is located in an area with low foot traffic or limited visibility, it could be more difficult to attract and retain customers.
Finding and retaining qualified staff can be a challenge in the restaurant industry. This could impact the quality of service and customer experience, which could ultimately impact the profitability of the franchise.
Opening and operating a Huddle House franchise can be expensive, and there may be unexpected costs that arise during the startup phase or ongoing operations.
- Dependence on franchisor
Franchisees are dependent on the franchisor to provide ongoing support, training, and marketing and advertising services.
Is the Huddle House Franchise Profit Worth the Franchise Cost?
Whether the Huddle House franchise profit is worth the franchise cost depends on a variety of factors, including the location of the franchise, the local market demand for the restaurant, the franchisee’s ability to manage costs and operate efficiently, and the overall economic conditions, but looking at it overall it is worth the franchise cost.
Huddle House Franchise Success and Failure Rate
The below table will highlight the Huddles House franchise success and failure rate for the last 3 years. This will supplement your decision-making process.
Competition Analysis of Huddle House Franchises
|Huddles House||Cost to Franchise||Franchisee Fees||Royalty + Ad fees||Expected Profit||Recoup of Capital||FD Rating|
|Huddles House||$4,83,000-$11,74,000||$40,000||4%+2%||$95,559||7-11 years||3.7/5|
|Sonic Franchise||$1,242,200 to $3,537,700||$45,000||5%+3.25%||13%||14.5 years||3.5/5|
|KFC Franchise||$1,440,600 to $3,163,550||$45,000||4%+5%||15%||13.5 years||3.7/5|
|Subway Franchise||$140,050 – $342,400||$15,000||8%+4.5%||7.5%||–||4/5|
|Checkers and Rally’s Franchise||$790,797 – $2,368,316||$30,000||4%+4.5%||15%||–||3.5/5|
|Burger King Franchise||$1,790,800 – $4,194,700||$50,000||4.5%+4%||16%||–||3.8/5|
The Franchise Deck rating for the Huddle House franchise is 3.7/5
Conclusion: Is the Huddle House franchise a good choice?
Huddle House’s menu offerings are designed to appeal to a wide range of customers, from traditional breakfast items like pancakes and omelets to lunch and dinner options like burgers, sandwiches, and salads. Huddle House franchise model provides several advantages to business owners, including access to a proven business model, extensive training and support, and strong brand recognition that can help attract customers and drive sales.
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Frequently Asked Questions (FAQs)
Is the Huddle House franchise profitable?
The profitability of a Huddles House franchise depends on several factors, including location, operating costs, and local market demand.
Can you make money owning a Huddle House?
Yes, franchisees can make money owning a Huddles House if they operate efficiently, manage costs, and attract and retain customers.
Is a Huddle House a franchise?
Yes, Huddles House is a franchise. The company offers franchising opportunities for entrepreneurs who are interested in operating a Huddle House restaurant.
How much is a Huddle House franchise?
The initial investment to open a Huddles Houses franchise ranges from $690,000 to $1,400,000.
How do Huddle House franchises make money?
Huddles House franchises make money by selling food and beverages to customers. The franchisee pays an ongoing royalty fee of 4% of gross sales to the franchisor.