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Huddle House Franchise ProfileFood Franchises > Casual Dining |
Initial Investment for Huddle House Franchise
The initial investment to open a Huddle House franchise ranges from $561,635 to $1,443,175. This includes the initial franchise fee of $35,000, along with costs for equipment, real estate, and other startup expenses. Prospective franchisees should also consider having cash reserves of $50,000 to $75,000 to cover initial operating costs.
Financial Performance Overview
Huddle House franchises can expect an average annual revenue of approximately $754,116 per unit, with a median revenue of $1,274,396. While the lowest annual revenue reported is $144,345, some units have achieved revenues as high as $2,092,634. Understanding these figures can help franchisees set realistic financial goals.
Ongoing Fees and Financial Requirements
Franchisees are required to pay a royalty fee of 4.75% on gross sales and a marketing fee of 3.00%. Additionally, prospective franchise owners should have a net worth between $400,000 and $1,000,000. These financial requirements ensure that franchisees are well-positioned to manage their businesses effectively.
Breakeven and Payback Period
Huddle House franchisees can anticipate a breakeven period of around 18 months, with an investment payback period of approximately 16 months. This relatively quick return on investment can be appealing for aspiring franchise owners looking for a timely path to profitability.
Huddle House Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Huddle House Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 338 | 310 | 308 |
| Net Change YoY | -28 | -2 | |
| Franchised Units | 285 | 260 | 253 |
| Net Change YoY | -25 | -7 | |
| Corporate Units | 53 | 50 | 55 |
| Net Change YoY | -3 | 5 |
Company Background
Huddle House is a family-oriented diner chain established in 1964, known for its welcoming atmosphere and diverse menu. With a focus on breakfast served all day, Huddle House offers a range of comfort food options, including pancakes, burgers, and sandwiches. The brand has grown to encompass a loyal customer base, primarily in the Southern and Midwestern United States, with a commitment to quality and community engagement.
Franchise Opportunity
Investing in a Huddle House franchise presents an exciting opportunity for aspiring entrepreneurs. With a low initial investment ranging from $561,635 to $1,443,175, potential franchisees can tap into a well-recognized brand. The franchise model provides comprehensive training and support, ensuring that new owners have the resources needed to succeed in the competitive diner market.
Financial Requirements
To qualify for a Huddle House franchise, candidates must have a net worth of $400,000 to $1,000,000 and liquid cash of $50,000 to $75,000. The initial franchise fee is set at $35,000, with ongoing royalty fees of 4.75% of gross sales and a marketing fee of 3%. These financial requirements are designed to ensure that franchisees are well-prepared to manage their operations effectively.
Operational Performance
Huddle House units average an annual revenue of approximately $754,116, with a median revenue of $1,274,396. The breakeven period is estimated at 18 months, while investment payback is projected at 16 months. These metrics illustrate the potential for profitability within the franchise, making it an appealing option for investors looking for solid returns.
Franchised and Corporate Units
As of recent years, Huddle House operates a mix of franchised and corporate units. In 2022, there were 253 franchised locations and 55 corporate units, reflecting a stable presence in the market. This balanced structure allows for shared resources and best practices, enhancing the overall performance of both franchisees and corporate-owned locations.
Brand Vision
Huddle House aims to create a friendly, neighborhood diner experience that brings families and friends together over delicious meals. The brand is dedicated to providing exceptional service and high-quality food in a comfortable setting. By focusing on community involvement and customer satisfaction, Huddle House strives to be the go-to dining destination for guests seeking a taste of home.
Frequently Asked Questions
The initial investment for a Huddle House franchise ranges from $561,635 to $1,443,175. This includes the franchise fee, equipment, and other startup costs.