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Considering a Hungry Howie’s Franchise? Don’t Overlook These 32 Important Franchise Fees

by Franchise Chatter on July 17, 2017

in Franchise Fees, Pizza Franchises



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Don't Invest in a Franchise Until You Check Out This List

Hungry Howie's Pizza Photo by toastforbrekkie

If you are considering a Hungry Howie’s franchise, don’t get blindsided by these 32 important franchise fees (from the initial franchise fee, to the royalty fee, to 30 other fees found in Items 5 and 6 of Hungry Howie’s 2017 FDD).

1.  Franchise Fee:  $12,500 to $25,000

  • Except as noted below, the Franchise Fee is $25,000 (the “Franchise Fee”). You pay the Franchise Fee to Hungry Howie’s in full when you sign the Franchise Agreement. No portion of the Franchise Fee is refundable under any circumstances.
  • Provided that you are a former member of the United States Armed Forces and have been “Honorably Discharged,” you shall pay the Franchise Fee for Veterans to Hungry Howie’s in lieu of the Franchise Fee.
  • The approved Honorably Discharged veteran must have a 51% or greater Ownership Interest and be designated as the Owner Operator (defined in Item 15) of the Restaurant.
  • The Franchise Fee for Veterans is 50% of the Franchise Fee regularly charged by Hungry Howie’s at the time you enter into a new Franchise Agreement. Currently, this reduced fee is $12,500.
  • You or your affiliates may receive the Franchise Fee for Veterans for only one Restaurant. You pay the Franchise Fee for Veterans to Hungry Howie’s in full when you sign the Franchise Agreement. No portion of the Franchise Fee for Veterans is refundable under any circumstances.
  • Franchisees that enter into a Non-Traditional Addendum pay a Franchise Fee established by Hungry Howie’s on an individual basis. Hungry Howie’s did not collect any Non-Traditional Restaurant Fees in the past fiscal year.
  • No portion of the Franchise Fee is refundable under any circumstances. Payment in full is required when the Franchise Agreement and the Non-Traditional Addendum are signed.

2.  Area Developer Multiple Unit Addendum (“ADMUA”) Fee:  the full Franchise Fee for the first franchise plus an additional deposit for each additional franchise you commit to develop under the Development Schedule (ordinarily, the additional deposit for each additional franchise is 50% of the Franchise Fee due for that franchise)

  • An Area Developer is a franchisee that is granted the right, for consideration paid to Hungry Howie’s, to open and operate multiple Hungry Howie’s Restaurants, generally within a delineated geographic area.
  • An ADMUA grants you, as an Area Developer, development rights for a specific number of franchises within a delineated geographic area according to a development schedule (the “Development Schedule”).
  • The Development Schedule is negotiated by you and Hungry Howie’s before the ADMUA is signed. Ordinarily, the Development Schedule will not extend for more than 5 years after the ADMUA is signed.
  • At the time you enter into an ADMUA, you must pay Hungry Howie’s a Development Fee. The Development Fee equals the full Franchise Fee for the first franchise plus an additional deposit for each additional franchise you commit to develop under the Development Schedule.
  • The Development Fee is negotiated by you and Hungry Howie’s before the ADMUA is signed. Ordinarily, the additional deposit for each additional franchise is 50% of the Franchise Fee due for that franchise.
  • No portion of the Development Fee paid under an ADMUA is refundable under any circumstances.

3.  Franchise Grand Opening Fee:  $15,000



  • The Franchise Grand Opening Fee is $15,000. The Franchise Grand Opening Fee is spent on grand opening marketing when you open the Restaurant for business.
  • You pay Hungry Howie’s the Franchise Grand Opening Fee on the date you furnish Hungry Howie’s with a fully executed copy of the lease for the Restaurant’s location.
  • Hungry Howie’s will use the Franchise Grand Opening Fee to pay the costs of promoting the opening of the Restaurant. The Franchise Grand Opening Fee will be used by Hungry Howie’s in any manner which it in good faith deems proper and effective for that purpose.
  • No portion of the Franchise Grand Opening Fee is refundable under any circumstances.

4.  Other Initial Fees:  $8,600 to $18,900 for Products, $42,700 to $58,900 for Conveyor Oven and Hood

  • Prior to opening the Restaurant for business, you must purchase an opening inventory of Products at a cost between $8,600 and $18,900.
  • Prior to opening the Restaurant, you must purchase from Hungry Howie’s a conveyor oven and hood system. Hungry Howie’s 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 $42,700 and $58,900, depending on the number and size of the ovens and hood system required, installation charges, and shipping/freight charges.
  • No amount paid to Hungry Howie’s, Distributing (Hungry Howie’s affiliate), or another distributor designated by Hungry Howie’s is refundable. No other fees or payments for goods or services are due from you to Hungry Howie’s or its affiliates before you open your business.

5.  Royalty Fee:  5.5% of Gross Sales but not less than $330 per Reporting Period

  • Due Date:  Payment Date after the Reporting Period.

6.  National Marketing Fee:  1% of Gross Sales but not less than $100 per Reporting Period

  • Due Date:  Payment Date after the Reporting Period.

7.  Regional Marketing Fee:  3% of Gross Sales but not less than $300 per Reporting Period

  • Due Date:  Payment Date after the Reporting Period.

8.  Local Marketing Fee:  3% of Gross Sales but not less than $300 per Reporting Period



  • Due Date:  Payment Date after the Reporting Period.

9.  Administrative Fees:  $50 to $500

  • Due Date:  10 days after written notice that fee has been assessed in accordance with the Manner of Payment.

10.  Annual Meeting Fee:  $1,000

  • Due Date:  10 days after written notice that fee has been assessed in accordance with the Manner of Payment.

11.  Attorneys’ Fees:  varies

  • Due Date:  10 days after written notice that fee has been assessed in accordance with the Manner of Payment.

12.  Audit Invoice:  twice the underpayment plus the cost of the audit

  • Due Date:  10 days after written notice that fee has been assessed in accordance with the Manner of Payment.

13.  Seminar Fee:  $250

  • Due Date:  10 days after written notice that fee has been assessed in accordance with the Manner of Payment.

14.  Financial Information Late Fee:  $250 per Accounting Period or any fraction thereof until the Financial Information is provided

  • Due Date:  10 days after written notice that fee has been assessed in accordance with the Manner of Payment.

15.  Insurance Fee:  $250 per Accounting Period or any fraction thereof until fully compliant with the Franchise Agreement’s insurance coverage requirements

  • Due Date:  10 days after written notice that fee has been assessed in accordance with the Manner of Payment.

16.  Insurance Procurement Fee:  cost of the insurance

  • Due Date:  10 days after written notice that fee has been assessed in accordance with the Manner of Payment.

17.  Interest Fee:  1.25% of the applicable outstanding amount due to Hungry Howie’s per Accounting Period or any fraction thereof

  • Due Date:  10 days after written notice that fee has been assessed in accordance with the Manner of Payment.

18.  Late Fee:  5% of the amount due

  • Due Date:  10 days after written notice that fee has been assessed in accordance with the Manner of Payment.

19.  Manual Replacement Fee:  $500

  • Due Date:  10 days after written notice that fee has been assessed in accordance with the Manner of Payment.

20.  NSF Fee:  $40, currently. The cost for checks returned due to “non-sufficient funds.”

  • Due Date:  10 days after written notice that fee has been assessed in accordance with the Manner of Payment.

21.  Products:  varies

22.  Re-Inspection Fee:  $2,500 plus Hungry Howie’s out-of-pocket expenses, which may vary

  • Due Date:  10 days after written notice that this fee has been assessed in accordance with the Manner of Payment.

23.  Relocation Fee:  $7,500

  • Due Date:  At the time you request to relocate the Restaurant.

24.  Renewal Fee:  $1,000

  • Due Date:  When you execute the new Franchise Agreement.

25.  Re-Opening Marketing Fee:  $5,000

26.  Replacement Training Fee:  $3,500

  • Due Date:  Before the beginning of training.

27.  Securities Offering Review Fee:  reimbursement of Hungry Howie’s out-of-pocket costs and expenses

28.  Termination as the Result of a Franchisee Default or Termination Without Cause by the Franchisee:  Minimum Royalty Fee for each Reporting Period through the end of the term of the Franchise Agreement

  • Due Date:  Within 60 days after the termination.

29.  Transfer Fee:  currently, $1,250, $6,250, or $12,500, depending on circumstances (based on Hungry Howie’s then-current Franchise Fee)

  • Due Date:  At the time of a Transfer.

30.  Unauthorized Transfer Fee:  $25,000

  • Due Date:  10 days after Hungry Howie’s provides you written notice that this fee has been assessed in accordance with the Manner of Payment.

31.  Upgrade Oversight Fee:  varies based on 15% of the cost of furnishing and installing any or all of the Upgrades

32.  Technology Fee:  0.25% of Gross Sales but not less than $25 per Reporting Period

  • Due Date:  Payment Date after the Reporting Period.

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