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.
Franchise Costs
4.75% royalty + 3% ad fund + $500-$700/mo technology, software, and other fixed fees
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
Key Insights
- Lower than average SBA loan default rate in Fast Food
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
HUDDLE HOUSE Current | $552K – $1.4M | $35K | 4.8% | 216 |
| 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 |
| ARBY'S | $645K – $2.5M | $38K | 4.0% | 2,316 |
Fast Food Average 126 franchises | $594K – $1.5M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 126 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
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
223 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
223 Contacts Available
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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)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
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.
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