Huddle House
Huddle House offers full-service restaurant franchises serving all meals, including breakfast. Known for casual dining and variety, it operates in the quick-service restaurant sector.
About Huddle House
Huddle House, Inc. is an American casual dining restaurant chain. As of April 2026, the company operates 260 locations in 20 states.
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Huddle House franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Huddle House restaurant franchise ranges from $551,950 to $1,429,150 for a New Development Unit when leasing the land and building and purchasing the equipment and signs [p.2]. For a Non-Traditional Unit, the range is from $384,305 to $1,107,650 [p.2].
What is the initial franchise fee?
The initial franchise fee varies depending on the type of unit and terms. For a new fifteen-year Standard Unit Franchise, it is $35,000 unless you qualify for a veteran's discount or are an existing franchisee purchasing an additional unit. For a Non-Traditional Unit, it is $15,000 for a ten-year term. This fee is fully earned and non-refundable upon execution of the Franchise Agreement. [p.18, p.98]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 4.75% of Net Sales [p.98, p.28]. For advertising fees, you must contribute 3.0% of Net Sales to the Advertising Fund [p.100], which can increase up to a maximum of 4.0% at the company's discretion but not more than 1% per year for consecutive twelve months [p.100].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement term length isn't specified in these excerpts. However, you may be able to renew it for up to 60 months each under certain conditions as outlined on page [p.96].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your franchise, which includes both Resale Units (where HHI operates the unit or has a property interest) and New Development Units. However, such transfers typically require prior written consent from HHI [p.8]. Additionally, if there is a lease involved for the premises, any transfer must also comply with the terms of that lease, including obtaining approval from the lessor within six months of certain events like death or incapacity [p.215].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if certain conditions are met, such as Operator or its principals defaulting on any other agreement with the company, including franchise agreements, sign leases, equipment leases, premises leases, or financing documents [p.140]. Additionally, the initial term of the agreement may be terminated without penalty upon specific events related to the Food Service Contract [p.255]. This isn't specified in all possible grounds for termination but covers some key scenarios.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory [p.58]. However, you are provided with certain protections within your Development Area. HHI will not establish or operate, nor franchise anyone else to establish or operate, Huddle House Restaurants in the Development Area during the Term of the Market Development Agreement, provided you comply with its obligations and development schedule [p.59].
What training and ongoing support does the franchisor provide?
The franchisor provides up to 40 total days of initial training (and additional time as deemed necessary) in the operation of your franchise [p.57]. This includes a required initial training program that can take 30 days if you will be the day-to-day operator, or three designated managers must complete it if you are not the daily operator [p.54]. Additionally, ongoing support may include courses, seminars, and other training programs as the franchisor deems appropriate from time to time, with fees potentially applicable for field-based training [p.57]. The franchisor also offers a one-day Franchisee Orientation Program at its headquarters or another location it determines appropriate; currently, this program is free but participants are responsible for their own travel and related expenses [p.57].
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, there are no specific numbers given for the current number of franchised outlets. However, it mentions that all outlets described in a certain table are Standard Units, but does not provide a count [p.81]. Regarding closures and terminations, during 2021, HHI temporarily ceased operating four units which permanently closed, and one unit was closed due to building damage and had not reopened by the end of 2023 [p.85]. This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor may provide financial performance information. This can include actual records of existing outlets you are considering buying, or supplementary information about potential performance under certain circumstances [p.74]. However, HHI does not make any financial performance representations and does not authorize its employees to do so either orally or in writing [p.80]. Written substantiation for the financial performance representation will be made available upon reasonable request [p.80].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling products only within your Huddle House Restaurant for consumption on-premises or for personal carry-out by customers, as well as for catering and delivery services within your designated territory. You may not sell any product (food or non-food) that is not specifically authorized by HHI, which must be prepared according to their prescribed methods of preparation [p.66]. Additionally, you must purchase or lease all required items from suppliers approved or designated by HHI, including fixtures, furnishings, signs, equipment, décor, computer systems, inventory, uniforms, advertising materials, and operational support services [p.37].