Hungry Howie’s Pizza Franchise Costs $292K –$567K (+ 2024 Profits)

Hungry Howie’s, founded in 1973, began its journey as a modest 1,000 square foot hamburger shop in Taylor, Michigan, which was transformed into a carry-out and delivery pizzeria by Jim Hearn. Steve Jackson, who initially worked as a delivery driver for Hearn, later became a partner, playing a crucial role in expanding the brand.

Their combined efforts led to the establishment of Hungry Howie’s as a major player in the pizza industry, characterized by its unique Flavored Crust® pizza, a concept rolled out nationally in 1985 after regional testing in 1983. This innovation positioned Hungry Howie’s distinctively in the competitive pizza marketplace.

The franchising chapter of Hungry Howie’s started in 1983 when Jackson and Hearn decided to expand through franchising. The year 2004 was a milestone for Hungry Howie’s, as it was recognized as “Chain of the Year” by Pizza Today magazine, further solidifying its reputation in the industry.

Type of Expenditure	Amount
Franchise Fee	$12,500 – $25,000
Franchise Grand Opening Fee	$15,000
Real Estate	$1,525 – $4,300 per month
Security Deposits	$1,525 – $8,607
Leasehold Improvements	$148,000 – $275,999
Architectural Drawings & Local Plan Review Fees	$4,300 – $17,300
Equipment and Fixtures	$83,948.19 – $179,768.79
Point of Sale System – Hardware Subscription	$3,579 – $3,678
Point of Sale System – Software-As-A-Service Subscription	$444 – $567
Opening Inventory	$12,000 – $19,000
Insurance	$705 – $3,698
Security Deposits – Utilities	$0 – $1,000
Exterior Signage	$4,103 –
Digital Displays	$2,400 – $3,900
Travel and Living Expenses During Training	$0 – $4,800
Additional Funds – 3 Months	$2,100 – $20,000
Total	$292,129 – $567,248

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

The Initial Franchise Fee is set at $25,000, which is required to be paid in full when signing the Franchise Agreement. This fee grants the franchisee the right to operate a Hungry Howie’s franchise.

Royalty Fee

Royalty Fees are charged at 5.5% of Gross Sales, with a minimum payment requirement of $360 per Reporting Period. This ongoing fee is a percentage of the revenue generated by the franchise.

Marketing Fee

A Marketing Fee of 7% of Gross Sales is charged, subject to a minimum of $721 per Reporting Period. This fee contributes to the franchisor’s marketing and advertising efforts on behalf of the franchise network.

Technology Fee

The Technology Fee, when implemented, will be 0.25% of Gross Sales, with a minimum of $25 per Reporting Period. This fee covers expenditures related to technology systems and support provided by the franchisor.

Transfer Fees

Transfer Fees apply when a franchise is sold or transferred to a new owner. The fee structure for transfers was outlined as up to $12,500, based on various circumstances surrounding the transfer.

Renewal Fees

A Renewal Fee of $1,000 is applicable for franchisees wishing to renew their franchise agreement. This fee is paid upon signing the new agreement to continue franchise operations under renewed terms.

Franchise Pros and cons

Pros

• Incredible marketing strategies: Hungry Howie’s Pizza has an efficient turnkey strategic marketing planning and execution team. Franchisees can leverage the brand’s popularity and integrate “digital first” marketing ideas combined with national media, regional advertising, social media, and local store marketing campaigns that appeal to a wider audience.
• Solid training and support: To prepare franchisees for a successful and profitable pizza business, the brand offers them comprehensive training and mentorship. Franchisees get in-store training programs, operation consultation support, and online training modules to equip their employees for franchise growth and success.
• Real estate and construction: Hungry Howie’s Pizza provides franchisees with dedicated and qualified real estate experts to help them identify convenient locations and come up with the chain’s branded restaurants. It provides franchisees with expert advice on site selection, lease negotiation, restaurant design, and construction.
• Geographic opportunities: The brand offers franchisees flexible franchise formats. These are the multi-unit or brand operators and single-unit stores, which consist of 1–3 stores. Franchisees get the opportunity to be part of a proven business concept no matter their budgets and enjoy multiple revenue streams.
• Technology platform: Hungry Howie’s Pizza has cultivated an innovative online delivery and engagement system to drive up sales and profitability. Franchisees benefit from its efficient customer loyalty program and real-time access to store-level data through mobile business management toolkits.
• Exclusive territory protection: The franchisor offers franchisees exclusive territory protection. As a result, it does not grant any other franchises or operate competing Hungry Howie’s Pizza restaurants in the protected area.
• Growing menu: The brand is the home of an assortment of flavored pizza crusts and other related foods. It is constantly expanding its menu to keep up with market trends and customer tastes. This gives franchisees an added advantage and brings them a lot of traffic.

Cons

• No financing: The brand does not offer direct or indirect financing to franchisees. It also does not guarantee any lease, note, or obligation of any lender.
• Competition: The Hungry Howie’s Pizza franchise experiences competition from well-established brands such as Pizza Hut, Domino’s Pizza, Marco’s Pizza, Jet’s Pizza or even Papa John’s
• Not a passive investment: franchisees must be actively involved in the day-to-day operations of the restaurant. Also, the franchise is not a part-time business; it has to be open on a full-time basis.

How to open a Hungry Howie’s Pizza Franchise

Opening a Hungry Howie’s Pizza franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Hungry Howie’s Pizza franchise.

1. Research the Brand

• Understand Hungry Howie’s business model, history, and brand values.
• Study the menu, customer demographics, and market positioning.
• Familiarize yourself with the pizza industry and current food trends.

2. Review Financial Requirements

• Examine the initial franchise fee, ongoing royalty fees, and advertising fees.
• Assess the total investment needed, including costs for real estate, equipment, and inventory.
• Consider your financial resources and funding options, such as loans or investors.

3. Submit an Application

• Complete the franchise application form on the Hungry Howie’s website.
• Provide detailed information about your business experience and financial status.
• Express your interest in specific locations or territories where you wish to operate.

4. Attend Discovery Day

• Participate in a Discovery Day event at Hungry Howie’s headquarters or a designated location.
• Meet with the Hungry Howie’s franchise team to learn more about the operational and business aspects.
• Use this opportunity to ask questions and demonstrate your enthusiasm and commitment.

5. Site Selection and Approval

• Work with Hungry Howie’s to identify a suitable location for your franchise.
• Consider factors like market demand, competition, and accessibility.
• Obtain approval from Hungry Howie’s for your chosen site.

6. Sign Franchise Agreement

• Review the Franchise Disclosure Document (FDD) carefully with a lawyer specializing in franchise law.
• Understand your rights, obligations, and the terms of the franchise agreement.
• Sign the franchise agreement and pay the initial franchise fee.

7. Secure Financing

• Finalize your funding arrangements, whether through personal resources, loans, or investors.
• Ensure you have the necessary capital for startup costs and operational expenses.

8. Complete Training Program

• Attend Hungry Howie’s comprehensive training program for franchisees and key staff members.
• Learn about operational procedures, food safety, customer service, and marketing strategies.
• Prepare to implement Hungry Howie’s standards and practices in your franchise.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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