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Hungry Howie's Pizza Franchise Cost & Fees

Date of Incorporation: 1973

Franchising Since: 1983

Headquarters: Madison Heights, Michigan

 

Business Description: The franchisor is Hungry Howie's Pizza & Subs, Inc. Franchisees operate a retail carry out and delivery and/or sit down restaurant which specializes in the sale of pizza, submarine sandwiches, calzones, salads, desserts and beverages.

 

Franchise Offer: The franchisor offers qualified purchasers the right to establish and operate a Hungry Howie's Traditional Restaurant at a single location. The franchisor may also franchise non-traditional restaurants developed for locations such as, stadiums, arenas, airports, train and bus stations, toll roads, amusement parks, convenience stores and other similar retail facilities, gas stations, hotels, schools, colleges, universities, office buildings, shopping malls and food courts, hospitals, institutional service facilities, and other “non-traditional” venues, which may offer a limited menu and/or services to its customers.

 

Financial Assistance: Neither Hungry Howie’s nor any of its affiliates offers direct or indirect financing. Neither Hungry Howie’s nor any of its affiliates will guaranty a franchisee’s note, lease or obligations.

 

Training and Assistance: Prior to opening the Restaurant, the franchisee or the Owner Operator must complete the then-current Initial Training Program. If the franchisee not an individual, the Initial Training Program must be successfully completed by the Owner Operator. Hungry Howie’s may require a Manager to successfully complete all or portion of the Initial Training Program training. The Initial Training Program may contain classroom and/or on-the-job training at an operating Hungry Howie’s Unit selected by the franchisor. The Initial Training Program may continue for a period of approximately 1-2 weeks after the Restaurant opens for business to the public. Hungry Howie’s may periodically require the franchisee’s attendance or participation or the attendance or participation of the Owner Operator or Manager at a Continuing Training Program.

 

Territory: The general area in which a Traditional Restaurant will be located may be a city or an area bounded by streets or roads. The franchisee will select the specific location of the Restaurant within the area. The specific location must be approved by the franchisor. The exclusive territory shall be within a one mile radius of the Restaurant. The franchisor will not operate or grant franchises for a Hungry Howie’s restaurant within the exclusive territory. Other Hungry Howie's franchisees may make deliveries into the Territory. A Non-Traditional Restaurant does not have any territorial protection.

 

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If, among other things, the franchisee is in good standing, upon expiration of the original Franchise Agreement, he/she will have the right to renew the franchise for one additional 10-year term by signing the then-current franchise agreement.

 

Obligations and Restrictions: The franchisor recommends direct participation in the Restaurant. The Owner Operator shall diligently devote his/her best efforts to the operation of the Restaurant. The Owner Operator shall be personally involved in the regular conduct, management and operation of the Restaurant on a frequent and ongoing basis. The Owner Operator shall not be changed without the prior written consent of Hungry Howie’s. “Manager” shall mean a person that the franchisee or the Management Company designates to have significant management responsibilities for the daily operations of the Restaurant and who has completed our Initial Training Program or other certification or training program acceptable to the franchisor in its sole discretion. The Owner Operator or a Manager shall be at the Restaurant when the Restaurant is opened and operating for business. Franchisees must sell all Menu Items at the Restaurant. Franchisees are only permitted to sell Menu Items at the Restaurant.

 

Estimated Number of Units: 550

 

Investment Tables:

Initial Investment

Name of Fee Low High
Franchise Fee $12,500 $25,000
Franchise Grand Opening Fee $15,000 $15,000
Real Estate (per month) $1,500 $3,700
Security Deposits $1,500 $3,700
Leasehold Improvements $71,300 $177,100
Floor Plan Design $5,500 $8,500
Equipment and Fixtures $95,500 $147,000
Point of Sale System $22,000 $27,500
Opening Inventory $7,100 $16,000
Insurance $1,600 $7,300
Security Deposits - Utilities $500 $3,000
Signs $4,500 $11,500
Travel and Living Expenses During Training $1,200 $6,700
Additional Funds - 3 Months $0 $20,000
ESTIMATED TOTAL $239,700 $472,000

 

Other fees

Type of Fee Amount
Royalty Fee 5% of gross sales but not less than $250 per Reporting Period.
National Marketing Fee 1% of Gross Sales but not less than $100 per Reporting Period.
Regional Marketing Fee 3% of Gross Sales but not less than $300 per Reporting Period.
Local Marketing Fee 3% of Gross Sales but not less than $300 per Reporting Period.
Administrative Fees $50 - $500
Alternate Architect Fee $2,500
Attorney's Fees Varies.
Seminar Fee $250
FI Late Fee $250 per Period or any fraction thereof until the Financial Information is provided.
Audit Invoice Twice the underpayment plus the cost of the audit.
Insurance Procurement Fee Cost of the insurance.
Interest Fee 1.25% of the applicable outstanding amount due to us per Reporting Period or any fraction thereof.
Late Fee 5% of the amount due.
Relocation Fee $7,500
Manual Replacement Fee $500
NSF Fee $40, currently. The cost for checks returned “non-sufficient funds.”
Re-Inspection Fee $2,500 plus our out-of-pocket expenses, which may vary.
Renewal Fee $1,000
Re-Opening Marketing Fee $5,000
Securities Offering Review Fee Reimbursement of our out-of pocket costs and expenses.
Products Varies.
Termination as the Result of a Franchisee Default Minimum Royalty Fee, National Marketing Fee and Regional Marketing Fee for each Reporting Period through the end of the term of the Franchise Agreement.
Transfer Fee $1,000, $3,000 or $7,500 depending on circumstances.
Unauthorized Transfer Fee $25,000
Upgrade Oversight Fee Varies based on 15% of the cost of furnishing and installing any or all of the Upgrades.

The above information has been compiled from the FDD of Hungry Howie’s. Year of FDD:2015

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