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

by Franchise Chatter on March 4, 2015

in Casual-Dining Restaurant Franchise, Franchise Earnings

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Huddle House Photo from greenbergfarrow.com

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

  • As reflected in the tables, some Evolution units were open less than a full year. Therefore, for comparison purposes in Item 19, included below are the annualized figures. Annualized Sales are based on a unit’s 2014 Daily Sales Average (April 28, 2013 through May 3, 2014) multiplied by 365 days.
  • When this term is applied to a group of units in a tier (Average Annualized Sales), the Average Sales is a straight average of several units’ annualized Sales. Straight averages are also used for Average DSA and Average Actual Sales.
  • The year 2014 refers to Huddle House, Inc.’s fiscal year, which ran from April 28, 2013 through May 3, 2014.
  • The information in Item 19 reflects the historic revenues of the Evolution units as of May 3, 2014, based on the revenue information available through the point-of-sale for the franchised and company-owned Huddle House Restaurants that use the Evolution design. Huddle House has not audited this data.
  • Additionally, Parts 4 and 5 of this FDD Talk post contain only information regarding the revenue of the Evolution units, and does not reflect any cost data.
  • Huddle House recommends that you make your own independent investigation and evaluation of the potential costs and other aspects of the performance of your Huddle House Restaurant, and consult with your attorney and other advisors before signing any franchise agreement.
  • Huddle House does not represent or imply that you can expect to attain the same or similar results. Actual results vary from unit to unit, and Huddle House cannot estimate the results of any specific unit. Your financial results are likely to differ, possibly materially, from those shown in Item 19.
  • Actual results are dependent on a variety of internal and external factors, none of which either Huddle House or a franchisee can estimate, such as:
  • competition
  • taxes
  • interest rates
  • the availability of financing
  • general economic climate
  • demographics
  • geographic location
  • commodity prices
  • changing consumer preferences
  • the franchisee’s business and management skills
  • the franchisee’s own commitment to its business
  • A new franchisee’s Huddle House Restaurant results are likely to differ from those of established Huddle House Restaurants.

Evolution Remodeled Units – 2014 Sales and Daily Sales Average

  • Two remodeled stores that closed during 2014 are excluded.

Months Opened Since Remodel: 0-3 months

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