Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Our Latest Views on the Historical Results of New Huddle House Restaurants Participating in Evolution Program (2014 FDD)

by Franchise Chatter on March 3, 2015

in Casual-Dining Restaurant Franchise, Franchise Earnings



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Huddle House Photo from pitch.com

Highlights of Huddle House’s Item 19 Financial Performance Representations (2014 FDD) – Part 4 of 5

  • Huddle House developed a new design model for Huddle House Restaurants known as “Evolution.” It is a new design prototype design that features a signature tower entrance, plush seating, and contemporary colors.
  • The first Evolution design units were two remodeled units that opened April 29, 2011. (One of those closed in 2014 due to a fire). Three days after the two remodeled units opened, on May 2, 2011, the first new Evolution unit opened.
  • In July 2011, three units opened that pre-dated the Evolution design. However, since July 2011, all newly-opened units have the Evolution design.
  • Huddle House is also in the process of remodeling many existing restaurants to incorporate the new Evolution look, and additional franchised units are also in the process of Evolution remodeling. Redesigned restaurants have experienced significant sales increases, based on data available to Huddle House at this time.
  • As of Huddle House’s fiscal year end, May 3, 2014, there were 70 Huddle House Restaurants with the Evolution design (including models that the company refers to as Evolution Lite and Plus). Sixty three of the 70 units are operated by franchisees, of which 28 are new and 35 are remodeled units. Also, at year end, Huddle House had 7 company-operated units with the Evolution design, of which 1 is new and 6 are remodeled units.
  • The table below shows a breakdown for Huddle House’s 2014 fiscal year (April 28, 2013 through May 3, 2014) of the Average Actual Sales, Daily Sales Average, and Average Annualized Sales of the 70 Evolution units (both franchised and company-owned), by type (new vs. remodel).
  • The data is grouped in tiers based on number of months the unit has been opened, either since opening as a new unit or since the remodel date.

Evolution New Units – 2014 Sales and Daily Sales Average

  • Two new stores that closed during 2014 are excluded.

Months Opened: 0-3 months



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