Updated August 6, 2018.
Detailed Estimates of Hungry Howie’s Franchise Costs Based on Item 7 (Estimated Initial Investment) of Hungry Howie’s 2018 Franchise Disclosure Document
- The estimated initial investment also includes Non-Traditional Restaurants. Any known variations between Restaurants and Non-Traditional Restaurants are stated in the notes below.
1. Franchise Fee: $12,500 to $25,000
2. Franchise Grand Opening Fee: $15,000
3. Real Estate: $2,200 to $4,000 per month
- You must secure suitable real estate for your Restaurant. Typical locations for Restaurants are between 1,200 and 1,600 square feet. Ordinarily, the real estate is leased and located in strip centers within metropolitan and suburban areas. Less typically, the real estate is a free-standing building.
- The amounts indicated assume that the real estate is leased and reflect a typical range of monthly rentals. The amount of your rent is dependent upon such factors as size, condition, and location.
- Neither Hungry Howie’s nor its affiliates will lease real estate to you.
- Ordinarily, you will not pay rent until you open your Restaurant. However, there are instances in which you may have to pay rent for 1-2 months prior to opening your Restaurant, due to your unique lease negotiations and construction schedule.
- The space and monthly rent for a Non-Traditional Restaurant will be dependent upon the venue in which the Non-Traditional Restaurant is located and varies significantly.
4. Security Deposits: $2,100 to $4,000
- Security deposits are payable to landlords and utility companies. This estimate contemplates a security deposit equal to one month’s rent. You may be required to pay a larger security deposit.
5. Leasehold Improvements: $60,800 to $181,500
- The amount of leasehold improvements is before any landlord-provided tenant improvements or allowances.
6. Architectural Drawings and Local Plan Review Fees: $6,800 to $8,800
- The amount shown includes the fees assessed by various local municipalities, which vary. The amount shown does not include the $2,500 fee that you must pay to the franchisor’s designated architect if you utilize an Alternate Architect. The use of an Alternate Architect is not typical.
- The amount shown also does not include additional services such as additional on-site visits, engineering fees, and reimbursable expenses.
- Your cost will vary depending on the type of build-out of the Restaurant, such as in-line strip centers, conversion of free-standing buildings, or stand-alone shells.
7. Equipment and Fixtures: $90,100 to $144,550
- The amount shown is for the purchase of equipment and fixtures for a Restaurant. Equipment and fixtures for a Non-Traditional Restaurant will vary depending on space and menu limitations, but are generally less than a Restaurant.
- If you lease these items, your initial investment will be less than the amount shown but there will be a monthly lease payment.
- Prior to opening the Restaurant, you must purchase from the franchisor a conveyor oven and hood system. The franchisor is the only designated supplier for the sale of the conveyor oven and hood system which you are required to install in the restaurant.
- The cost of the conveyor oven and hood system will be between $40,700 and $46,000, depending on the number and size of the ovens and hood system required, installation charges, and shipping/freight charges.
- You will be required to pay a deposit of 50% of the total costs at the time you place an order with the franchisor. The balance must be paid prior to delivery and installation.
8. Point-of-Sale System: $23,300 to $29,500
- The amount shown does not include a $140 monthly software maintenance fee which you must pay to the franchisor’s Designated Supplier.
- Additionally, the amount shown does not include a $89 monthly online ordering fee or a $55 monthly loyalty program fee, which are both currently paid for by the National Ad Fund to the franchisor’s Designated Supplier. These fees are subject to change by the franchisor’s Designated Supplier.
9. Opening Inventory: $8,000 to $12,400
10. Insurance: $2,200 to $3,900
- The amount shown includes an initial deposit and the first required insurance payment.
- You must maintain the following insurance coverage: “all risk” business property for the restaurant build-out and contents for full replacement cost value; business interruption equal to actual loss sustained; general liability (including products liability); owned, non-owned, and hired auto liability; employment practices liability; workers’ compensation and occupational disease; umbrella or excess liability.
- The franchisor may require you to purchase other types of insurance and it may require you to increase coverage limits.
11. Security Deposits – Utilities: $500 to $3,890
12. Signs: $3,600 to $16,100
13. Travel and Living Expenses During Training: $1,200 to $6,350
14. Additional Funds – 3 Months: $0 to $20,000
- Estimated funds needed to cover your initial expenses during the first 3 months of operation (other than the items identified separately in the table), not including any draw or salary for you or an Owner Operator.
- You may need additional working capital during the first 3 months you operate your Restaurant and for a longer time period afterward.
15. Total: $228,300 to $475,000
- The franchisor has relied on its numerous years of experience in franchising, and its principals’ and affiliates’ numerous years of experience developing and operating Hungry Howie’s Restaurants to complete these estimates. The franchisor does not offer direct financing to franchisees for any items.