Huckleberrys
Huckleberrys franchises serve Louisiana-inspired breakfast and lunch dishes in restaurants. Known for authentic Southern cuisine, it operates in the quick-service restaurant sector.
Huckleberrys franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Huckleberry's franchise ranges from $482,000 to $1,647,000. This includes $35,000 that must be paid to the franchisor or an affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee is Thirty-Five Thousand Dollars ($35,000.00), which is due in lump sum when you sign the Franchise Agreement and is not refundable under any circumstance [p.8].
What are the ongoing royalty and advertising fees?
This isn't specified in the excerpts. The provided FDD excerpts discuss performance obligations and revenue recognition but do not detail the specific amounts or terms of ongoing royalty and advertising fees that a franchisee must pay.
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement term is not specified in the excerpts. However, according to [p.52], you have the right to enter into a new franchise agreement for one additional term equal to ten years upon renewal, subject to the terms and conditions outlined in the agreement.
Can I sell or transfer my franchise, and what does that require?
To sell or transfer your franchise, you must pay a $25,000.00 transfer fee [p.81]. However, if the transfer is to add a business entity or new shareholder/member without changing management control, the fee can be waived [p.81]. This isn't specified in the excerpts regarding additional requirements for selling or transferring your franchise beyond the payment of fees.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts. The provided FDD does not detail specific grounds for termination by the franchisor beyond mentioning post-termination obligations [p.126].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific net worth or liquid capital requirements for franchisees.
Do I get an exclusive or protected territory?
Yes, you receive an exclusive territory for your Huckleberry's outlet, but this exclusivity does not extend to Alternative Distribution Channels such as retail outlets or the Internet. Additionally, while you have protection against other Huckleberry's outlets being opened in your designated area under a Multi-Unit Development Agreement, you will not be compensated for sales through Alternative Distribution Channels within your territory. [p.29]
What training and ongoing support does the franchisor provide?
The franchisor provides initial training materials including an operations manual, digital presentations, web-based instruction, and hands-on training [p.28]. Additionally, they offer on-site remedial training upon request or as deemed appropriate by the franchisor [p.58]. The ongoing support is primarily through the performance of the ongoing franchise license being satisfied when the license is granted and the franchisee opens for business, with continued support provided over the life of the agreement [p.149].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor provides an historic financial performance representation of Gross Sales achieved by their franchisees who have been open at least twelve months as of the end of their most recently concluded fiscal year. However, other than this representation, the franchisor does not make any representations about future financial performance or past financial performance of company-owned or franchised outlets [p.44]. They also do not authorize their employees or representatives to make such representations [p.44].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling all products and services that are part of the System, and any additional services and products that the franchisor incorporates into the System in the future. You may only offer products and services that the franchisor has previously approved [p.32]. Additionally, you must purchase hardware, software, system tools, and processes as stated in the Operations Manual, and all equipment, fixtures, furnishings, ingredients, supplies, and services from designated suppliers or in accordance with specified standards [p.19, p.26].