Hungry Howies Pizza
Hungry Howie's Pizza & Subs offers pizza and subs in a franchise model with an investment range of $358,903 to $519,295. Known for its unique crust and variety of toppings, it operates in the quick-service restaurant industry.
Hungry Howies Pizza franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Hungry Howie's franchised business is between $358,903 and $519,295, as stated on [p.1]. This figure includes various expenses such as insurance, inventory, and the conveyor oven and hood system, among other costs.
What is the initial franchise fee?
The initial franchise fee is not specified in the exact amount but is represented by a blank space that needs to be filled with the specific dollar figure, as stated on page [p.170].
What are the ongoing royalty and advertising fees?
The ongoing fees include royalties and advertising fees. Royalties are variable based on the franchisees' sales and recognized monthly, while advertising fees are included in nonoperating income from other fees [p.94, p.96]. However, specific amounts are not provided in these excerpts.
How long is the initial franchise agreement, and can I renew it?
The initial term of a franchise agreement is typically 10 years, with an option to renew for a fee or transfer the franchise agreement to a new or existing franchisee [p.94]. Renewal is possible by signing a new Franchise Agreement, provided you are permitted to do so under the terms of your current agreement [p.18].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.5]. Good cause includes but is not limited to unspecified factors. Therefore, transferring your franchise would typically require approval from the franchisor based on their determination of good cause.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and not curing such failure after being given written notice and a reasonable opportunity to cure, which cannot exceed 30 days [p.5]. Additionally, the franchisor retains other rights to terminate or alter the Marketing Funds, among other unspecified grounds, as detailed in various pages including [p.37] and potentially superseded by state statutes or court decisions in Washington [p.194].
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?
Based on the excerpts, you do not receive an exclusive territory for your restaurant. Your territory is defined as a 1-mile radius around the restaurant location, unless certain population density criteria are met, in which case it may be reduced through negotiations. Additionally, the franchisor retains the right to establish and operate Non-Traditional Restaurants within or outside your territory without providing you with any territorial protection [p.45, p.124].
What training and ongoing support does the franchisor provide?
The franchisor provides an Operator Training Program that includes instruction on various aspects such as product preparation, handling, marketing, sales, and customer service [p.42]. Additionally, there is a Designated Franchisee Training Program required for successful completion before opening the restaurant or as otherwise specified in the agreement [p.43]. Both programs are designed to protect and maintain the system and marks but do not cover employment practices of employees, which remain under the franchisee's control [p.42, p.43].
How many franchised outlets are there, and how many have closed or been terminated?
The number of franchised units is not precisely specified in the given excerpts. However, it mentions that Franchised Units are in 17 states [p.69] or 20 states [p.65], excluding certain types of units such as Florida units, affiliated units, legacy units, and those closed due to force majeure events. The exact number of closed or terminated units is not provided in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor, Hungry Howie's, does not make any financial performance representations except for the actual records of an existing outlet if purchased. However, if requested, written substantiation of all financial performance information appearing in Item 19 can be provided upon reasonable request [p.70]. This isn't specified in the excerpts for new franchises but is available for existing outlets.
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only Menu Items at the Restaurant and must sell all Menu Items there [p.51]. You must purchase all your Products from Distributing or a Designated Supplier, and you may only use these products at your Restaurant; you are prohibited from reselling, transferring, or sharing them with others [p.23]. Additionally, you must buy equipment, supplies, uniforms, signage, menu boards, printed materials, posters, and menus only from the franchisor or a Designated Supplier [p.23].