Huddle House Franchise FDD, Profits & Costs (2025)
Huddle House, a cherished American diner-style franchise, has firmly established itself in the restaurant industry with a storied history dating back to its inception in 1964.
Originating as a neighborhood gathering spot in Decatur, Georgia, it quickly became a beloved community staple, particularly after local football games, embodying a warm, familial atmosphere.
By 1966, Huddle House had begun franchising, expanding its reach and becoming a regional favorite. With its headquarters now located in Atlanta, GA, Huddle House continues to grow and adapt, while still holding true to the original values that made it a community cornerstone.
Huddle House distinguishes itself in the competitive breakfast segment with a comprehensive menu that goes beyond breakfast, offering lunch, dinner, and late-night snacks all day long.
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Initial Investment
How much does it cost to start a Huddle House franchise? It costs on average between $558,000 – $1,443,000 to start a Huddle House franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount (Traditional Franchise) |
|---|---|
| Initial Franchise Fee | $35,000 |
| Training Fee and Travel and Living Expenses While Training | $23,000 – $47,000 |
| Real Estate – Rent for First 3 months | $16,600 – $25,000 |
| Improvements | $160,000 – $723,000 |
| Equipment and Seating | $170,000 – $300,000 |
| Signs and Décor | $32,000 – $75,000 |
| Site Engineering/Civil Plans | $8,000 – $21,000 |
| Architectural/MEP Drawings | $5,000 – $30,000 |
| Travel Expenses for Opening Guide Meeting | $0 – $750 |
| Smallwares, Small equipment, Opening Inventory and Uniforms | $28,000 – $52,000 |
| POS System | $15,500 – $25,000 |
| Help Desk and Maintenance (total for first 3 months) | $735 – $825 |
| Hardware and Software Components – Computer Security | $1,200 – $2,000 |
| Other Computer and Technology Expenses (first 3 months) | $2,100 – $3,100 |
| Grand Opening Promotion | $3,000 – $5,000 |
| Miscellaneous Opening Costs | $4,000 – $8,500 |
| Security Deposit | $7,500 – $15,000 |
| Additional Funds-3 Months | $50,000 – $75,000 |
| Total | $562,000 – $1,443,000 |
Average Revenue (AUV)
How much revenue can you make with a Huddle House franchise? A Huddle House franchised restaurant makes on average $732,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,739,000 yearly revenue for similar breakfast franchises. Below are a few Huddle House competitors as a comparison:
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Huddle House Franchise Disclosure Document
Frequently Asked Questions
How many Huddle House locations are there?
As of the latest data, Huddle House operates 272 locations across the United States. These establishments are primarily franchise-owned, with the brand expanding consistently in regions like Georgia, Alabama, and Kentucky.
What is the total investment required to open a Huddle House franchise?
The total investment required to open a Huddle House franchise ranges from $558,000 to $1,443,000.
What are the ongoing fees for a Huddle House franchise?
Huddle House franchisees are required to pay a royalty fee of 4.75% of gross sales. This fee is directed towards supporting the franchise’s operational infrastructure, brand maintenance, and continuous development initiatives.
Additionally, franchisees are required to pay a marketing fee set at 3% of gross sales. This marketing fee is used to fund local and national advertising efforts, promotional campaigns, and other brand visibility initiatives that support franchisee sales growth and customer acquisition.
What are the financial requirements to become a Huddle House franchisee?
To become a Huddle House franchisee, candidates must have a minimum net worth of $600,000 and at least $200,000 in liquid capital. These requirements ensure sufficient financial stability and liquidity to support startup and operational expenses.
How much can a Huddle House franchise owner expect to earn?
The average gross sales for a Huddle House franchise are approximately $0.73 million per location. Assuming a 15% operating profit margin, $0.73 million yearly revenue can result in $109,500 EBITDA annually.
Who owns Huddle House?
Huddle House is owned by Ascent Hospitality Management, a company that also owns Perkins Restaurant & Bakery. Ascent Hospitality, based in Atlanta, Georgia, focuses on managing and expanding restaurant brands, providing strategic direction, and supporting franchisees to drive growth across the United States.
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