Huddle House Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$35,000
Investment required
$558,000 - $1,443,000
Royalty fee
4.75%

Huddle House: Championing 24/7 Homestyle Dining Excellence

Huddle House, a prominent American casual dining chain, was established by John Sparks in April 1964 in Decatur, Georgia. The name "Huddle House" is inspired by the football huddle, reflecting its goal of providing a 24-hour eatery where fans could gather post-game on Friday nights.

Now headquartered in Atlanta, Georgia, Huddle House started franchising in 1966, expanding its reach and sharing its Southern-style dining with a broader audience across the United States.

The franchise distinguishes itself by offering a diverse selection of homestyle meals without any hassle, available for breakfast, lunch, and dinner at any time. This approach caters to a wide range of customers. Huddle House focuses on uniting friends and family over hearty meals, striving to create a cozy and inviting environment at each of its locations.

This dining philosophy, along with its extensive menu and flexible hours, sets Huddle House apart in the casual dining industry. In the highly competitive $285 billion breakfast category, Huddle House offers a versatile business model that enables franchise owners to capitalize on prime real estate opportunities in their respective markets.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Huddle House offers 2 types of franchises:

Franchise Option Initial Investment
New Development Unit Huddle House restaurant franchise $561,635 to $1,443,175
Non-Traditional Unit Huddle House $558,035 to $1,403,675

We are summarizing below the main costs associated with opening a New Development Unit Huddle House restaurant franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

New Development Unit Huddle House restaurant franchise

Type of Expenditure Amount
Initial Franchise Fee $35,000
Training Fee and Travel and Living Expenses While Training $23,000 - $47,000
Real Estate – Rent for First 3 months $16,600 - $25,000
Improvements $160,000 - $723,000
Equipment and Seating $170,000 - $300,000
Signs and Décor $32,000 - $75,000
Site Engineering/ Civil Plans $8,000 - $21,000
Architectural/ MEP Drawings $5,000 - $30,000
Travel Expenses for Opening Guide Meeting $0 - $750
Smallwares, Small Equipment, Opening Inventory and Uniforms $28,000 - $52,000
POS System $15,500 - $25,000
Help Desk and Maintenance (total for first 3 months) $735 - $825
Hardware and Software Components - Computer Security $1,200 - $2,000
Other Computer and Technology Expenses (first 3 months) $2,100 - $3,100
Grand Opening Promotion $3,000 - $5,000
Miscellaneous Opening Costs $4,000 - $8,500
Security Deposit $7,500 - $15,000
Additional Funds-3 Months $50,000 - $75,000
Totals $561,635 - $1,443,175

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Number of units

2023
Franchised units

286

256

242

Company-owned units

50

51

53

Total units

336

307

295

Franchise Disclosure Document

Training 

Huddle House, a leading name in the franchise sector, distinguishes itself with a comprehensive training program aimed at equipping franchisees with the essential skills and knowledge. Here's a closer look at what Huddle House provides to its franchise partners.

Huddle House's dedication to excellence is reflected in its thorough training program, which lasts up to 40 days. This training covers every aspect of franchise operations, ensuring that either the franchisee or their appointed manager becomes proficient in the brand's standards and procedures.

Understanding that the franchising landscape is always evolving, Huddle House also acknowledges the necessity for continuous learning. Therefore, they may require franchisees to participate in additional training sessions to stay updated with the latest developments and maintain operational excellence.

Territory Protection

Huddle House franchisees are granted the right to operate at a specific, designated location. However, it's important to note that these rights are limited to the assigned location, and there is no provision for an exclusive territory within the franchise agreement.

The agreement includes certain restrictive covenants to protect the franchisee's operations. For example, during the term of the agreement, neither the operator nor any third-party operator of the host facility is permitted to display or sell food products similar to those offered by the Huddle House unit. This ensures that the franchisee's operations remain distinct and consistent with the brand's unique offerings.

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