Huddle House Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Huddle House is a family-dining franchise serving Southern-style breakfast, lunch, and dinner around the clock. Franchisees run sit-down restaurants managing kitchen and front-of-house staff across dayparts.
FranchiseVerdict summary · 2026
A Huddle House franchise requires a total initial investment of $555K – $1.7M, including a $15K – $35K franchise fee and an ongoing 4.8% royalty[2]. Per the 2025 FDD, average unit revenue was $796K[2]. SBA 7(a) loans show a 26.2% charge-off rate across 134 loans[1]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $555K – $1.7M
- 26th pct Service Resta…
- Avg gross sales
- $796K
- Net sales2nd pct Service Resta…
- Royalty
- 4.8%
- 7th pct Service Resta…
- Units
- 272
- 35th pct Service Resta…
- SBA charge-off
- 26.2%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $555K – $1.7M including a $35K franchise fee, 4.8% ongoing royalty.
- RETURNSAverage unit revenue of $796K/year (median $783K).
- RISKVerdict D (Below average), verdict score 36/100 (higher is better). SBA loan charge-off rate of 26.2% across 134 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DECLINESystem contracting at -14.6% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Huddle House, Inc.
- Parent company
- Griddle Holdings, Inc.
- Ultimate parent
- Peachtree Parentco, Inc. (controlled by Elysium Management LLC)
- CEO title
- Chief Executive Officer and President
- James O'Reilly
- Incorporated in
- GA
- HQ
- 5901-B Peachtree Dunwoody Road, Suite 450, Sandy Springs, Georgia 30328
- Auditor
- Frazier & Deeter, LLC
- Audited financials
- Franchisor revenue
- $106.6M
- vs $114.7M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- of HHI
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- James O'Reilly
- Headquarters
- GA
- Founded
- 1964
- FDD year
- 2025
- States available
- 21
Can you afford it, and what does the money buy?
Entry cost is about average for a full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown36 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Traditional Unit) | $35K | $35K | |
| Training Fee and Travel and Living Expenses While Training (Traditional) | $23K | $47K | |
| Real Estate - Rent for First 3 months (Traditional) | $17K | $25K | |
| Improvements (Traditional) | $160K | $723K | |
| Equipment and Seating (Traditional) | $170K | $300K | |
| Signs and Decor (Traditional) | $32K | $50K | |
| Site Engineering/Civil Plans (Traditional) | $8K | $21K | |
| Architectural/MEP Drawings (Traditional) | $5K | $30K | |
| Travel Expenses for Opening Guide Meeting (Traditional) | $0 | $750 | |
| Smallwares, Small Equipment, Opening Inventory and Uniforms (Traditional) | $28K | $62K | |
| POS System (Traditional) | $6K | $25K | |
| Help Desk and Maintenance - first 3 months (Traditional) | $750 | $900 | |
| Hardware and Software Components - Computer Security (Traditional) | $2K | $3K | |
| Other Computer and Technology Expenses - first 3 months (Traditional) | $2K | $4K | |
| Grand Opening Promotion (Traditional) | $3K | $5K | |
| Miscellaneous Opening Costs (Traditional) | $4K | $9K | |
| Security Deposit (Traditional) | $8K | $15K | |
| Additional Funds - 3 Months (Traditional) | $50K | $75K | |
| Initial Franchise Fee (Non-Traditional Unit) | $15K | $15K | |
| Training Fee and Travel and Living Expenses While Training (Non-Traditional) | $23K | $40K | |
| Total initial investment | $936K | $2.5M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $555K – $1.7M
- Top 40% of category vs category
- Liquid capital req'd
- $50K – $75K
- Top 40% of category vs category
- Franchise fee
- $15K – $35K
- Top 40% of category vs category
- Royalty
- 4.8%
- percentage · typical 6–8%
- Ad fund
- 3.5%
- typical 3–5%
- Total fee load
- 32.8%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.8% of gross sales |
| Marketing / ad fund | 3.5% of gross sales |
| Technology fee | $25 |
| Training fee | $12K |
| Transfer fee | $9K |
| Renewal fee | $9K |
| Inventory (initial) | $28K – $62K |
| Total fee load | 32.8% of rev |
At 32.8% total fee load, roughly $261K per year goes to the franchisor before you pay a single operating expense.
What do units actually make?
Average unit sales run 54% below the full-service restaurants norm.
Reported as net sales, not gross sales
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$78K
9.7% margin
Unlevered ROIC
6%
EBITDA / total invested capital
Payback
15.4 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Huddle House unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
6%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Huddle House units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$438K
on $2.2M purchase
Total debt
$1.8M
SBA $1.1M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Reported as net sales, not gross sales
- Avg gross sales
- $796K
- Per unit, per year
- Median gross sales
- $783K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- net sales tiers
- Sample size
- 205 outlets
- vs category median 18 · large
- Range (low → high)
- $84K→$2.1M
- Cohort dispersion (min → max)
- Quartile band
- $282K→$1.4M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 3 / 10 · above
Compared against 805 Full-Service Restaurants brands
Revenue is only 0.7x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $796K/year in gross sales. Revenue-to-investment ratio: 0.7x.
Fee burden
Total ongoing fee load of 32.8% — above the Full-Service Restaurants average of 7.6%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -14.6% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants averages
How Huddle House Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 272
- Opened
- 7
- Last reporting year
- Closed
- 11
- Terminated
- 5
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 5
- Term expired, not renewed (per Item 20)
- Turnover rate
- 9.7%
- Company-owned
- 56
- Corporate units in the system
- % franchised
- 79%
- vs corporate-owned
- Net growth (3-yr)
- -14.6%
- Net unit change over 3 years
- 3-yr CAGR
- -14.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 7
- Closed (3yr)
- 11
- Terminated (3yr)
- 5
- Non-renewed (3yr)
- 5
- Transfers (3yr)
- 17
- Reacquired (3yr)
- 1
- Franchisor bought back
- Transfer rate
- 6.3%
- Owners selling to other franchisees
- Termination rate
- 4.4%
- Franchisor-initiated terminations
- Ceased ops
- 2.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 134
- Loan volume
- $54.8M
- Median loan
- $324K
- 50th percentile
- Charge-off rate
- 26.2%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 75.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 45
- Defaults
- 28
- Typical loan rate
- 5.6%
- avg rate to borrowers
- Franchised industry avg
- 13.2%
- brand above franchise avg ↑
- Jobs supported
- 1,292
- 3.7 per loan
- Lender concentration
- 12%
- top lender's share
Borrower mix: 71% went to startups / new businesses, 29% to established operators
Franchise vs independent — in full-service restaurants, franchised businesses charge off at 13.2% vs 9.7% for independents — franchising is associated with 36% higher SBA default risk in this category.
Vintage analysis
Huddle House charge-off rate by loan vintage
Top lenders financing Huddle House franchisees
Showing 3 of 45 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Huddle House's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 28-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 26.2% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 26.2% — 64% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Contracting franchise system with litigation history, missing profitability data, and high capital requirements presents meaningful risk for ROI recovery.
Litigation (Item 3)
4 pending cases: (1) Stowers v. HHI (franchisee fraud claim, 2014, WV); (2) HHI v. Huddle House 968 (abandonment/trademark, 2020, GA, appeal pending after partial summary judgment); (3) HHI v. GPG Enterprises (post-expiration operation, 2020, GA, appeal pending after $919,820 default judgment); (4) HHI v. AKA 202 (abandonment of multiple units, 2022, GA, defendant bankruptcy stay). 5 completed cases.
Largest disclosed settlement: $919,820
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Frazier & Deeter, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 36 / 100 verdict
- 01MINORUnit count declining 6.5% YoY (272 units) signals system contraction and potential market saturation or franchisee dissatisfaction
- 02HIGHNine total legal actions including fraudulent inducement and breach of contract claims suggest governance and disclosure issues
- 03MEDHigh initial investment range ($551k–$1.43M) combined with undisclosed profitability creates significant capital risk
- 04MINOR4.75% royalty on declining sales base may become unsustainable as system shrinks further
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 32.8% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Arbitration location | Fulton County, Georgia / U.S. District Court, Northern District of Georgia |
| Jury trial waiver | Yes |
| Governing law | GA |
| Litigation count | 4 |
View Item 3 litigation summary
4 pending cases: (1) Stowers v. HHI (franchisee fraud claim, 2014, WV); (2) HHI v. Huddle House 968 (abandonment/trademark, 2020, GA, appeal pending after partial summary judgment); (3) HHI v. GPG Enterprises (post-expiration operation, 2020, GA, appeal pending after $919,820 default judgment); (4) HHI v. AKA 202 (abandonment of multiple units, 2022, GA, defendant bankruptcy stay). 5 completed cases.
Items 10, 11
Training & Operations
- Classroom training
- 48 hrs
- On-the-job training
- 96 hrs
- Training location
- Huddle House Certified Training Restaurant (company-owned or franchised, as designated by HHI); Support Center for classroom portions
- Ongoing training
- Required
- Site selection
- Franchisee proposes; HHI approves
- Franchisor financing
- Offered
- Item 10
- POS system
- NCR Aloha Point of Sale
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NCR Aloha Point of Sale
Item 20 · call current owners
Franchisee Contacts
246 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Huddle House · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Huddle House franchise?
The total investment to open a Huddle House franchise ranges from $555K – $1.7M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Huddle House franchise owners earn?
According to Item 19 of the Huddle House FDD, the average gross sales per unit is $796K. The median is $783K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Huddle House FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Huddle House FDD and qualifies whose outlets they describe.
What is Huddle House's franchise failure rate?
Based on SBA 7(a) loan data, Huddle House has a charge-off rate of 26.2% across 134 loans, meaning 26.2% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Huddle House franchise locations are there?
As of their most recent FDD filing, Huddle House has 272 total units in the United States, including 216 franchised units and 56 company-owned units. 7 new units were opened in the latest reporting year.
Is Huddle House a good franchise to buy?
FranchiseVerdict rates Huddle House as a D-grade franchise with a verdict score of 36 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.