Huddle House Franchise Cost, Revenue & Review 2026
- Investment
- $555K – $1.7M
- Disclosed sales
- $796K
- gross sales, not profit
- SBA charge-off
- 26.2%
- on 134 loans
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
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.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| 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
| Fee | Amount |
|---|---|
| Royalty | 4.8% of gross sales |
| Marketing / ad fund | 3.5% |
| 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 50% below the full-service restaurants norm.
Reported as net sales, not gross sales
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
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?
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.
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.
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
Compared against 801 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 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
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?
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
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).
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.
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%
- 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
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.
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
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Truist Bank | 9 | $2.5M | 11.1% |
| 2 | Synovus Bank | 5 | $2.3M | 20.0% |
| 3 | First Financial Bank | 5 | $2.0M | 0.0% |
| 4 | Wells Fargo Bank National Association | 4 | $1.2M | 25.0% |
| 5 | Stearns Bank National Association | 3 | $1.1M | 66.7% |
| 6 | Citizens Bank | 2 | $452K | 50.0% |
| 7 | Pineland Bank | 2 | $835K | 0.0% |
| 8 | Southern Bancorp Bank | 2 | $282K | 100.0% |
| 9 | FNB South | 2 | $734K | 50.0% |
| 10 | Peoples Bank | 2 | $190K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| GAGeorgia | 19 | 4 | 23.5% |
| KYKentucky | 13 | 1 | 7.7% |
| NCNorth Carolina | 6 | 0 | 0.0% |
| TXTexas | 6 | 3 | 60.0% |
| TNTennessee | 5 | 3 | 75.0% |
| FLFlorida | 4 | 0 | 0.0% |
| ALAlabama | 3 | 0 | 0.0% |
| ARArkansas | 3 | 3 | 100.0% |
| MSMississippi | 3 | 1 | 33.3% |
| NJNew Jersey | 3 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Frazier & Deeter, LLC
Franchisor revenue (Item 21)
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
- 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
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
pendingBrought 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
judgmentBrought 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
dismissedBrought 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
settledBrought 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
settledBrought 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
settledBrought 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
settledBrought 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
settledBrought 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
settledBrought 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.
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 territory |
| 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 | 9 |
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
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.