Hungry Howie'sFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Hungry Howie's franchise requires a total initial investment of $359K – $519K, including a $25K franchise fee and an ongoing 5.5% royalty[2]. Per the 2025 FDD, average unit revenue was $818K[2]. SBA 7(a) loans show a 17.2% charge-off rate across 84 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $359K – $519K
- 67th pct Service Resta…
- Avg gross sales
- $818K
- 26th pct Service Resta…
- Royalty
- 5.5%
- 40th pct Service Resta…
- Units
- 509
- 89th pct Service Resta…
- SBA default
- 17.2%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1982. Systems this mature have refined operations and brand recognition.
Franchised units fell from 497 to 476 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $359K – $519K including a $25K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $818K/year (median $778K).
- Verdict D (Below Average) with a risk score of 70/100. SBA loan charge-off rate of 17.2% across 84 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Hungry Howie’s Pizza & Subs, Inc.
- CEO title
- CEO/President and Director
- Steven E. Jackson
- CEO experience
- 1981 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- MI
- HQ
- 30300 Stephenson Highway, Suite 200, Madison Heights, Michigan 48071
- Auditor
- Plante & Moran, PLLC
- Audited financials
- Franchisor revenue
- $30.3M
- vs $29.4M prior year
Overview
About
Franchisees operate quick-service pizza and submarine sandwich restaurants, managing kitchen prep, in-store and delivery operations, staff scheduling, and local marketing. Daily responsibilities include food preparation, customer service (dine-in, carryout, delivery), inventory management, and P&L oversight for a typically 1,000-2,000 sq ft location.
- CEO
- Steven E. Jackson
- Headquarters
- MI
- Founded
- 1981
- FDD year
- 2025
- States available
- 21
FDD Item 7 · 2025 filing · 16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee | $13K | $25K | |
| Franchise Grand Opening Fee | $15K | $15K | |
| Real Estate | $2K | $5K | |
| Security Deposits | $0 | $8K | |
| Leasehold Improvements | $197K | $274K | |
| Architectural Drawings & Local Plan Review Fees | $12K | $13K | |
| Equipment and Fixtures | $86K | $134K | |
| Point of Sale System - Hardware Subscription | $4K | $4K | |
| Point of Sale System - Software-As-A-Service Subscription | $444 | $567 | |
| Opening Inventory | $10K | $15K | |
| Insurance | $650 | $5K | |
| Security Deposits - Utilities | $0 | $500 | |
| Exterior Signage | $14K | $18K | |
| Digital Displays | $2K | $3K | |
| Travel and Living Expenses During Training | $3K | $5K | |
| Additional Funds - 3 Months | $2K | $20K | |
| Total initial investment | $359K | $542K |
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.
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
9.5% margin
Unlevered ROIC
17%
EBITDA / total invested capital
Payback
5.8 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $359K – $519K
- Below avg, review vs category
- Liquid capital req'd
- $2K – $20K
- Better than avg vs category
- Franchise fee
- $13K – $25K
- Better than avg vs category
- Royalty
- 5.5%
- Gross Sales · typical 6–8%
- Ad fund
- 7.0%
- typical 3–5%
- Total fee load
- 12.8%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 7.0% of gross sales |
| Technology fee | $0 |
| Transfer fee | $13K |
| Renewal fee | $1K |
| Total fee load | 12.8% of rev |
At 12.8% total fee load, roughly $104K per year goes to the franchisor before you pay a single operating expense.
Financial Performance
- Avg gross sales
- $818K
- Per unit, per year
- Median gross sales
- $778K
- Item 19 type
- Historic Sales
- Sample size
- 305 units
- vs category median 28 · large
- Range (low → high)
- $277K→$1.8M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Hungry Howie's Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 509
- Opened
- 4
- Last reporting year
- Closed
- 13
- Turnover rate
- 2.6%
- Company-owned
- 33
- Corporate units in the system
- % franchised
- 94%
- vs corporate-owned
- Net growth (yr3)
- -1.9%
- Net unit change last year
- 3-yr CAGR
- -4.2%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 12
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 84
- Loan volume
- $19.2M
- Median loan
- $166K
- 50th percentile
- Charge-off rate
- 17.2%
- 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)
- 82.8%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 45
- Defaults
- 11
Vintage analysis
Hungry Howie's charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Hungry Howie's'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
- 27-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Hungry Howie's presents moderate-to-caution risk: declining unit count, undisclosed profitability, and missing financial transparency raise questions about system health and franchisee viability despite low litigation and protected territories.
Litigation (Item 3)
Item 3 (Litigation) section not provided in document
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Plante & Moran, PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 70 / 100 rating
- 01MINORUnit count declining 1.9% YoY indicates system contraction and potential franchisee dissatisfaction
- 02MEDNet income not disclosed in Item 19 prevents ROI validation and return predictability assessment
- 03MINORHigh initial investment ($358k-$519k) with 5.5% royalty requires $45k+ annual sales just to cover royalties at average unit performance
- 04MINORAverage revenue of $817k is modest for pizza/sub category; typical top performers exceed $1.2M, suggesting middle-of-pack unit economics
- 05HIGHNo going concern statement absent—unusual omission that warrants clarification on franchisor financial stability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 1 mi |
| Territory population | 25,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Oakland County, Michigan |
| Jury trial waiver | Yes |
| Governing law | Michigan |
| Litigation count | 0 |
View Item 3 litigation summary
Item 3 (Litigation) section not provided in document
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 200 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- POS system
- HungerRush 360
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: HungerRush 360
Item 20 · call current owners
Franchisee Contacts
22 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hungry Howie's · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hungry Howie's franchise?
The total investment to open a Hungry Howie's franchise ranges from $359K – $519K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hungry Howie's franchise owners earn?
According to Item 19 of the Hungry Howie's FDD, the average gross sales per unit is $818K. The median is $778K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Hungry Howie's's franchise failure rate?
Based on SBA 7(a) loan data, Hungry Howie's has a charge-off rate of 17.2% across 84 loans, meaning 17.2% 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 Hungry Howie's franchise locations are there?
As of their most recent FDD filing, Hungry Howie's has 509 total units in the United States, including 497 franchised units and 33 company-owned units. 4 new units were opened in the latest reporting year.
Is Hungry Howie's a good franchise to buy?
FranchiseVerdict rates Hungry Howie's as a D-grade franchise with a risk score of 70 out of 100, 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.
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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.