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Huddle House Franchise Cost, Revenue & Review 2026

Full-Service RestaurantsGAFranchising since 1966
DBelow averageBelow average35/100Editorial grade from public filings; not investment advice.
Investment
$555K – $1.7M
Disclosed sales
$796K
gross sales, not profit
SBA charge-off
26.2%
on 134 loans

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-01246FDD 2025Data QualityExcellent95%
Manager-run OKYes: Protected territory

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 →

Sources, dates and evidence

FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist

Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.

Overview

Investment
$555K – $1.7M
25th pct Service Resta…
Avg gross sales
$796K
Net sales3rd pct Service Resta…
Royalty
4.8%
8th pct Service Resta…
Units
269
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

Total Investment
$555K – $1.7M
Median $678K
above median ↑, worse than category
Franchise Fee
$15K – $35K
Median $40K
below median ↓, better than category
Liquid Capital Req'd
$50K – $75K
Median $43K
above median ↑, worse than category
Avg Revenue
$796K
Median $1.6M
below median ↓, worse than category
Net sales
Royalty Rate
4.8%
Median 5.0%
near median
Ongoing Fees
32.8% of rev
Median 7.0%
above median ↑, worse than category
SBA Charge-Off Rate
26.2%
134 loans · Median 12.2%
above median ↑, worse than category
System Size
269 units
Median 20 units
above median ↑, better than category
Turnover Rate
6.7%
Median 0.0%
Territory
Protected, not exclusive
Limits on the franchisor opening nearby; not an exclusive zone
Owner-Operator
Optional
Can hire a manager
Litigation
9 cases
Review carefully

Green = favorable by >10% vs Full-Service Restaurants median · 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 35/100 (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).
  • GROWTHNegative: net -4 franchised outlets in the latest year (14 opened, 18 closed); 45 signed but not yet open (Item 20).
  • 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.
FDD Item 1, page 7 of the 2025 FDD
Ultimate parent
Peachtree Parentco, Inc. (controlled by Elysium Management LLC)
FDD Item 1, page 7 of the 2025 FDD
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 runs 68% above the typical full-service restaurants franchise.

Total investment (Item 7)$555K – $1.7MCited, not corroborated — printed on page 30 of the 2025 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$35,000Verified — printed on page 18 of the 2025 FDD (Item 5), and another item of the same filing prints the same figure on a labelled row, which is an independent restatement.
Royalty4.8%Cited, not corroborated — printed on page 21 of the 2025 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Ad fund3.5%Cited, not corroborated — printed on page 21 of the 2025 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Working capital$50K – $75K

Source: FDD 2025 · Items 5–7

Full Item 7 breakdown18 line items

Initial investment breakdown

Item 7 initial investment line items
Line itemLowHigh
Initial Franchise Fee$35K$35K
Training Fee and Travel and Living Expenses While Training$23K$47K
Real Estate - Rent for First 3 months$8K$30K
Improvements$160K$960K
Equipment and Seating$170K$310K
Signs and Decor$32K$68K
Site Engineering/ Civil Plans$8K$21K
Architectural/ MEP Drawings$8K$35K
Travel Expenses for Opening Guide Meeting$0$750
Smallwares, Small equipment, Opening Inventory and Uniforms$28K$74K
POS System$13K$18K
Help Desk and Maintenance (total for first 3 months)$750$900
Hardware and Software Components - Computer Security$4K$7K
Other Computer and Technology Expenses (first 3 months)$625$1K
Grand Opening Promotion$5K$10K
Miscellaneous Opening Costs$4K$9K
Security Deposit$8K$15K
Additional Funds-3 Months$50K$75K
Total initial investment$555K$1.7M

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%
typical 6–8%
Ad fund
3.5%
typical 3–5%
Total fee load
32.8%
vs 9–13% typical

Ongoing fees · Item 6

Huddle House: Item 6 recurring fees
FeeAmount
Royalty4.8% of gross sales
Marketing / ad fund3.5%
Technology fee$25
Training fee$12K
Transfer fee$9K
Renewal fee$9K
Inventory (initial)$28K – $62K
Total fee load32.8% of rev
Fee structure insight

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 50% below the full-service restaurants norm.

Avg gross sales$796K

Reported as net sales, not gross sales

Cited, not corroborated — printed on page 76 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Median gross sales$783KCited, not corroborated — printed on page 76 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Item 19 typenet sales tiers
Sample size205 outlets

Source: FDD 2025 · Item 19

Single-unit · not modelled

Returns at a glance

An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Huddle House until someone supplies them — yours, in the models below.

—

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

Total invested capital · disclosed

$1.2M

Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.

ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.

Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own 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?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearFDD
FDD Item 19 reports $796,063 per unit
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.

Total invested capital · what you put in to openFDD
FDD Item 7: $555K–$1.7M (midpoint used)
FDD reports $50K–$75K

Unlevered ROIC · per unit

Your modelled return on total invested capital, before any debt financing.

—

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$1.2M
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

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%.

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.

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→$2.1MCited, not corroborated — printed on page 76 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Cohort dispersion (min → max)
Quartile band
$282K→$1.4M
Bottom 25% → top 25%
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
Gross sales rank3th
Item 19 reporting methods vary across brands
Investment cost rank25th
Lower investment ranks lower (better)
Royalty rate rank8th
Lower royalty = lower percentile (better)
Unit count rank35th
vs Full-Service Restaurants peers
Risk score rank79th
Lower risk = lower percentile (better)

Compared against 801 Full-Service Restaurants brands

Showing the headline figures — all 164 extracted fields are in the Full FDD Report · $19 →
Revenue insight

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 median of 7.0%.

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 medians

How Huddle House Compares

Metric
Huddle House
Category median
vs median
Investment
$1.1M
$678Kmiddle half $427K–$1.3M · n=326
Above median, worse than category
Revenue
$796K
$1.6Mmiddle half $885K–$2.4M · n=122
Below median, worse than category
Unit Count
269
20middle half 6–73 · n=308
Above median, better than category

Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.

Is the system healthy?

Total units269Cited, not corroborated — printed on page 82 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
3-yr growth-14.6% (worth scrutinizing)
Turnover rate6.7% (favorable vs category)

Source: FDD 2025 · Item 20

Unit growth

Item 20 · unit dynamics

The Growth Chart

Total units
269
Opened
14
Last reporting year
Closed
18
Terminated
9
Franchisor ended the franchise (per Item 20)
Non-renewed
1
Term expired, not renewed (per Item 20)
Turnover rate
6.7%
Company-owned
57
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

Last fiscal year · Item 20 exits and transfers

Terminated
9
Not renewed
1
Transferred
17
Reacquired
3
Franchisor bought back
Signed, not yet open
45
0.17 per open outlet · Item 20 Table 5
Projected new
12
Franchisor's next-year forecast
Transfer rate
6.3%
Owners selling to other franchisees
Termination rate
4.4%
Franchisor-initiated terminations
Ceased ops
2.2%
Units that stopped operating
2022
231
Franchised units
2023
216-15
Franchised units
2024
212-4
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Active operators · 21 states
No contacts on file

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).

Where the owners are · Item 20 owner list

205 current owners across 21 states; 41 former (terminated, transferred or not renewed) listed separately.

  • GA 54
  • KY 28
  • TX 17
  • VA 15
  • SC 13
  • TN 13
  • MO 11
  • LA 9
  • AR 8
  • FL 7
  • IL 6
  • NC 6
  • +9 more states

Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.

Growth insight

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.

F
SBA Lending Health
Weak SBA lending record · 26.2% charge-off
Total loans
134
Loan volume
$54.8M
Median loan
$324K
50th percentile
Charge-off rate
26.2%
on 134 loans · 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

BrandNational avg
Huddle House charge-off rate by loan vintage. Showing 14 vintages from 1993 to 2017. Rates range from 0.0% to 66.7%.0%5%10%15%20%25%30%35%40%45%50%55%60%65%70%'93'99'04'12'16'17

Top lenders financing Huddle House franchisees

Truist Bank9 loans11.1%
Synovus Bank5 loans20.0%
First Financial Bank5 loans0.0%

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.

Total loans
43
Loan volume
$14.9M
Charge-off rate
28.2%
Jobs created
718

Historical SBA 504 lending data via CDCs, not predictive of future performance.

Explore lender portfolios on Bank Reports or regional data on State Reports.

Lender network · 7(a) + 504

SBA Lending Report

Full lending analysis for Huddle House from SBA 7(a) FOIA data.

Principal loss rate
8.8%
Avg SBA guarantee
77%
Avg interest rate
5.61%
Avg chargeoff amount
$180K
Lender concentration
11.8%
Job velocity
3.7 per $100K
NAICS benchmark
7.4%
NAICS 722511
Jobs supported
1,292

Top SBA lendersTop lender holds 12% of loans

#LenderLoansVolumeDefault %
1Truist Bank9$2.5M11.1%
2Synovus Bank5$2.3M20.0%
3First Financial Bank5$2.0M0.0%
4Wells Fargo Bank National Association4$1.2M25.0%
5Stearns Bank National Association3$1.1M66.7%
6Citizens Bank2$452K50.0%
7Pineland Bank2$835K0.0%
8Southern Bancorp Bank2$282K100.0%
9FNB South2$734K50.0%
10Peoples Bank2$190K0.0%

Geographic failure vector

StateLoansDefaultsRate
GAGeorgia19423.5%
KYKentucky1317.7%
NCNorth Carolina600.0%
TXTexas6360.0%
TNTennessee5375.0%
FLFlorida400.0%
ALAlabama300.0%
ARArkansas33100.0%
MSMississippi3133.3%
NJNew Jersey300.0%

SBA 7(a) lending trend

1992
1
1993
3
1994
6
1995
4
1996
2
1997
2
1998
1
1999
3
2000
5
2002
3
2004
3
2005
1
2006
3
2007
3
2008
1
2009
2
2010
2
2011
2
2012
3
2013
3
2014
2
2015
3
2016
7
2017
4
2018
1
2019
1
2021
3
2022
2

Borrower profile

Startup5 (71%)
Ownership change1 (14%)
Existing (2+ yr)1 (14%)

Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict

Lending insight

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.

SBA charge-off26.2% · 134 loans
Verdict score35/100 (higher is better)
Litigation9 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

DBelow average35Verdict score 35/100

Contracting franchise system with litigation history, missing profitability data, and high capital requirements presents meaningful risk for ROI recovery.

High confidence±4 pts
3139

Bankruptcy (Item 4)

None disclosed

Audited financials (Item 21)

Yes · Frazier & Deeter, LLC

Franchisor revenue (Item 21)

Yr 1: $106.6MYr 2: $114.7MNon-royalty: $5.7M

Franchisor entity revenue (not unit-level)

Most recent fiscal year ended April 30, 2024. Total revenues $106,594K consist of Revenues $100,895K plus Marketing fund revenues $5,699K. Net loss of $10,086K; total stockholders' deficit of $(1,032)K (consolidated, in thousands). Item 7 note states HHI total revenues approximately $115,780,000 for FY ended April 30, 2024 (includes affiliate/marketing figures).

ⓘ 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 35 / 100 verdict

  1. 01MINORUnit count declining 6.5% YoY (272 units) signals system contraction and potential market saturation or franchisee dissatisfaction
  2. 02HIGHNine total legal actions including fraudulent inducement and breach of contract claims suggest governance and disclosure issues
  3. 03MEDHigh initial investment range ($551k–$1.43M) combined with undisclosed profitability creates significant capital risk
  4. 04MINOR4.75% royalty on declining sales base may become unsustainable as system shrinks further

Severity inferred from the FDD text · not a regulatory classification

Showing the headline figures — all 164 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

Litigation case detail9 matters · Item 3

Litigation cases

The franchisor

Pending (1)

  • Lyle Stowers and Best Food Fare, LLC v. Huddle House, Inc. and John Morris

    pending

    Brought by a franchisee · filed 2014-12-29 · Lincoln County Superior Court, West Virginia · Civil Action No. 14-C-145

    “Lyle Stowers and Best Food Fare, LLC v. Huddle House, Inc. and John Morris, Civil Action No. 14-C-145, Lincoln County Superior Court, West Virginia, December 29, 2014. Plaintiffs are the former franchisee, and its owners, of a Huddle House Restaurant in West Hamlin, West Virginia.”Page 14 of the 2025 FDD, Item 3

Concluded (8)

  • Huddle House, Inc. v. SDS Stores, Inc., Donald F. Schomaker, and Sherri L. Schomaker

    judgment

    Brought against a franchisee · filed 2025-04-30 · Superior Court of Fulton County, Georgia · 25CV005891

    “Huddle House, Inc. v. SDS Stores, Inc., Donald F. Schomaker, and Sherri L. Schomaker, Superior Court of Fulton County, Georgia, Case No. 25CV005891. On April 30, 2025, HHI initiated this action against franchisee, Stores, Inc., and its guarantors, seeking damages stemming from the franchisee’s closure and abandonment of two Huddle House restaurants prior to the expiration of the franchise terms.”Page 14 of the 2025 FDD, Item 3

    Outcome:“on July 23, 2025, the court entered default judgment against the defendants and in favor of HHI in the aggregate amount of $406,117.23, consisting of liquidated damages, attorneys’ fees, and statutory prejudgment interest, thereby concluding the litigation.”

  • Huddle House, Inc. v. AKA 202 LLC, AKA 314 LLC, AKA 635 LLC, The Glebe Restaurants, Inc., and Timothy Guest, and Thomas Wood

    dismissed

    Brought against a franchisee · filed 2022-08-01 · Superior Court of Fulton County, Georgia · 2022-CV-368192

    “Huddle House, Inc. v. AKA 202 LLC, AKA 314 LLC, AKA 635 LLC, The Glebe Restaurants, Inc., and Timothy Guest, and Thomas Wood, Superior Court of Fulton County, Georgia, Case No. 2022-CV-368192. On August 1, 2022, HHI initiated this action against franchisees and their guarantors seeking damages and injunctive relief stemming from the franchisees’ closure and abandonment of several Huddle House”Page 15 of the 2025 FDD, Item 3

    Outcome:“That hearing occurred on October 8, 2024, and on October 9, 2024, the court entered an Order Granting Motion for Default Judgment as to all of the defendants except Guest, who had been dismissed, and awarding default judgment against those defendants and in favor of HHI in the aggregate amount of $832,641.37, thereby concluding the litigation.”

  • Huddle House, Inc. v. Austin Foodmart, Inc., Jasvir Singh, and Inderjeet Sachdeva

    settled

    Brought against a franchisee · filed 2021-03-05 · U.S. District Court for the Northern District of Georgia (removed from Superior Court of Fulton County) · 1:21-cv-02640

    “Huddle House, Inc. v. Austin Foodmart, Inc., Jasvir Singh, and Inderjeet Sachdeva, U.S. District Court for the Northern District of Georgia, Case No. 1:21-cv-02640. On March 5, 2021, HHI initiated this action against franchisee, Austin Foodmart, Inc., and its two guarantors seeking damages and injunctive relief stemming from the franchisee’s closure and abandonment of its Huddle House restaurant”Page 15 of the 2025 FDD, Item 3

    Outcome:“the parties reached a settlement agreement whereby defendants, jointly and severally, agreed to pay HHI $160,000. On February 16, 2022, following HHI’s receipt of the $160,000 settlement amount, the parties’ filed a Stipulation of Dismissal, thereby concluding the litigation.” (page 16)

  • Huddle House, Inc. v. Barth HH, Inc., Griddle Cafe Inc., and Gary Barth

    settled

    Brought against a franchisee · filed 2021-09-17 · Superior Court of Fulton County, Georgia · 2021-CV-354655

    “Huddle House, Inc. v. Barth HH, Inc., Griddle Cafe Inc., and Gary Barth, Superior Court of Fulton County, Georgia, Case No. 2021-CV-354655. On September 17, 2021, HHI initiated this action against franchisee, Barth HH, Inc., and its guarantor, and a related entity, alleging breach of contract, alter ego claims, tortious interference with contract, unjust enrichment and constructive trust, civil”Page 16 of the 2025 FDD, Item 3

    Outcome:“the parties reached a global settlement, whereby the defendants agreed to pay HHI $95,000 and to cease operations of any competing concept. Following HHI’s receipt of the $95,000 settlement amount from defendants and assurances of defendants’ compliance with the remaining obligations, the parties stipulated to dismiss the matter with prejudice on May 13, 2022.”

  • Huddle House, Inc. v. GPG Enterprises Inc., Rajinder Kaur, and Narinder Gill

    settled

    Brought against a franchisee · filed 2020-09-17 · Superior Court of Fulton County, Georgia · 2020CV340574

    “Huddle House, Inc. v. GPG Enterprises Inc., Rajinder Kaur, and Narinder Gill, Superior Court of Fulton County, Georgia, Case No. 2020CV340574. On September 17, 2020, HHI initiated this action against franchisee, GPG Enterprises Inc., and its guarantors, seeking injunctive relief and damages stemming from the franchisee’s continued post-expiration operation of a Huddle House restaurant at the”Page 15 of the 2025 FDD, Item 3

    Outcome:“but the parties reached a settlement agreement before a ruling issued with respect to that appeal, whereby defendants, jointly and severally, agreed to pay HHI $371,675.53. Consequently, the appeal was withdrawn on November 25, 2024, thereby concluding the litigation.”

  • Huddle House, Inc. v. Huddle House 968, LLC and Mazin Shalabi

    settled

    Brought against a franchisee · filed 2020-08-04 · Superior Court of Fulton County, Georgia · 2020-CV-339000

    “Huddle House, Inc. v. Huddle House 968, LLC and Mazin Shalabi, Superior Court of Fulton County, Georgia, Case No. 2020-CV-339000. On August 4, 2020, HHI initiated this action against franchisee, Huddle House 968, LLC and its guarantor seeking injunctive relief and damages arising from the franchisee’s closure and abandonment of its Huddle House restaurant prior to expiration of the franchise term”Page 14 of the 2025 FDD, Item 3

    Outcome:“but the parties reached a settlement agreement before that appeal was fully briefed, whereby defendants, jointly and severally, agreed to pay HHI $80,000. Consequently, the appeal was withdrawn on October 31, 2024, and on November 4, 2024, following HHI’s receipt of the $80,000 settlement amount, the parties filed a Notice of Dismissal with Prejudice, thereby concluding the litigation.” (page 15)

  • Huddle House, Inc. v Garcia Enterprises, LLC and Glen Garcia

    settled

    Brought against a franchisee · filed 2018-08-15 · Superior Court of Fulton County, Georgia · 2018-CV-2849048

    “Huddle House, Inc. v Garcia Enterprises, LLC and Glen Garcia, Superior Court of Fulton County, Georgia, Case No. 2018-CV-2849048. On August 15, 2018, HHI initiated this action against the franchisee, Garcia Enterprises, LLC and its guarantor, seeking damages and injunctive relief arising from franchisee’s closure and abandonment of its Huddle House restaurant prior to the expiration of the”Page 17 of the 2025 FDD, Item 3

    Outcome:“Before the court ruled on the motion to set aside, defendants agreed to pay HHI $96,000 in settlement of all claims and withdrew their motion with prejudice on July 7, 2020.”

  • Huddle House, Inc. v. Mary Jane Enterprises, Inc., Fine Foods, LLC, Flippin Holdings, LLC, Mary Jane Robertson, and Robert Robertson

    settled

    Brought against a franchisee · filed 2015-02-10 · Columbia County Superior Court, Georgia (filed in Fulton County Superior Court) · 2015CV00667

    “Huddle House, Inc. v. Mary Jane Enterprises, Inc., Fine Foods, LLC, Flippin Holdings, LLC, Mary Jane Robertson, and Robert Robertson, Case No. 2015CV00667, Columbia County Superior Court, Georgia, filed on February 10, 2015. HHI initiated litigation in Fulton County (Georgia) Superior Court against two franchisees of twelve Huddle House Restaurants, the franchisees’ owner (Mary Jane Robertson),”Page 16 of the 2025 FDD, Item 3

    Outcome:“entered into a confidential settlement agreement on November 20, 2019, in which the parties released all of their claims. The action was dismissed with prejudice on November 25, 2019.” (page 17)

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

What are you signing up for?

Ongoing fees run about 32.8% of sales (royalty + ad fund), before rent and labor.

Initial term15 yrs
Renewal term5 yrs
TerritoryProtected, not exclusive
Initial training454 hrs

Source: FDD 2025 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term15 years
Renewal term5 years
Allowed renewalsℹ3
Territory typeProtected territory
Protected territoryYes
Exclusive territoryℹNo
Territory radius3 mi
Online sales rightsℹGranted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorOptional
Non-compete (years)ℹ2 years
Non-compete (miles)ℹ5 mi
Right of first refusalℹYes
RoFR response window30 days
Transfer requires consentYes
Termination notice10 days
Curable defaultsℹ3
Mandatory arbitrationNo
Arbitration locationFulton County, Georgia / U.S. District Court, Northern District of Georgia
Jury trial waiverYes
Governing lawGA
Litigation count9

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

✓Site selection assistance
✓Grand opening support
✓Lease negotiation help

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

Unlock 246 contacts · $49
Free preview
(724) 324-••••PA
Unlock all 246 contacts
(270) 789-••••KY
(731) 277-••••TN
(706) 377-••••GA
(731) 644-••••TN

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. Important context: Reported as net sales, not gross sales. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.

Who owns Huddle House?

Huddle House is franchised by Huddle House, Inc.. Its parent company is Griddle Holdings, Inc.. The ultimate parent named in the FDD is Peachtree Parentco, Inc. (controlled by Elysium Management LLC). Source: FDD Item 1, 2025 filing.

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 269 total units in the United States, including 212 franchised units and 57 company-owned units. 14 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 35 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.

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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.