HUDDLE HOUSE
Huddle House, Inc. offers franchises for operating full-service restaurants that serve breakfast, lunch, and dinner menu items, including steaks, sandwiches, hamburgers, chicken, shrimp, potatoes, vegetables, desserts, and beverages, available around the clock for dine-in, carry-out, catering, and delivery. The business model revolves around the proprietary Huddle House System, encompassing standardized recipes, food preparation, equipment, layouts, training, marketing, and operations to ensure consistency across locations. It targets the general public seeking casual dining options with 24/7 availability.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
4.75% royalty + 3% ad fund + $500-$700/mo technology, software, and other fixed fees
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: Data for 209 Huddle House Franchised Restaurants that were open for at least 50% of 2023 and met other criteria specified in the Notes to Tables 1-9.
* Calculated weighted average gross revenue for franchised units in 2023: (21 units × $1,473,240 + 84 units × $979,765 + 83 units × $632,916 + 21 units × $359,757) / 209 total units = $829,307.30. Median gross revenue, revenue top quartile, and revenue bottom quartile are directly from Table 2 for franchised restaurants in 2023.
Extracted Item 19 Section
How HUDDLE HOUSE Compares to Other Fast Food Franchises
Key Insights
- Lower than average SBA loan default rate in Fast Food
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
HUDDLE HOUSE Current | $552K - $1.4M | $35K | 4.8% | 216 |
| Burger King | $2.1M - $4.7M | $50K | 4.5% | 19,732 |
| MCDONALD'S | $1.5M - $2.6M | $45K | N/A | 12,772 |
| AFC | $45K - $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.7M - $3.1M | $15K | 5.0% | 3,441 |
| JIMMY JOHN'S | $366K - $728K | $35K | 6.0% | 2,647 |
Fast Food Average 127 franchises | $605K - $1.5M | $35K | 6.1% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 127 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2023)
Outlets by state across the United States
+7 more states
SBA Loan History
Historical SBA 7(a) loan data for HUDDLE HOUSE franchisees (2010 - 2022)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
Primarily post-termination enforcement actions involving non-compliance with de-identification and non-compete obligations, unauthorized use of marks, competing operations, unpaid royalties, fees, and liquidated damages; one fraudulent inducement claim by a former franchisee.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a HUDDLE HOUSE franchise?
The total initial investment to open a HUDDLE HOUSE franchise ranges from $551,950 to $1,429,150. This includes a franchise fee of $35,000. Ongoing royalty fees are 4.8% of gross sales.
How much revenue does a HUDDLE HOUSE franchise make?
According to the 2024 FDD, the average gross revenue for a HUDDLE HOUSE franchise is $829,307.3. The median revenue is $833,116.
How many HUDDLE HOUSE franchise locations are there?
As of the 2024 FDD, HUDDLE HOUSE has 216 franchise locations. The company has been franchising since 1966.
Can you get an SBA loan for a HUDDLE HOUSE franchise?
Yes, SBA loans are available for HUDDLE HOUSE franchises. Historical data shows 35 SBA 7(a) loans have been approved for HUDDLE HOUSE franchisees, with an average loan amount of $680,674. The historical default rate is 14.3%.
Is HUDDLE HOUSE a good franchise to buy?
HUDDLE HOUSE shows several positive indicators: established brand with 216+ locations, transparent financial performance data (Item 19). However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in HUDDLE HOUSE?
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