Hungry Howie's Pizza & Subs Franchise Costs, Fees & FDD

Year Business Began: 1973

Franchising Since: 1983

Headquarters: Madison Heights, Michigan

Estimated Number of Units: 515

Franchise 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, calzone-style subs, salads, desserts, beverages, and other products. 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.
Training Overview: The Operator Training Program is mandatory for the Operator. The “Operator” is an individual who is vested with sufficient decision-making authority to make decisions on the franchise’s behalf who is essential to the restaurant’s effective and efficient operation on a day-to-day basis and shall be personally involved in the regular conduct, management and operation of the restaurant on a regular, frequent, and ongoing basis. The Operator Training Program currently is four weeks long in duration. The Operator Training Program may contain classroom and/or on-the-job training at an operating Hungry Howie’s Restaurant selected by the franchisor. There is also a Designated Franchisee Training Program. The two-week Designated Franchisee Training Program is mandatory for the designated franchisee (defined in the FDD). The franchisor may provide additional assistance for a period of approximately one to two weeks after the restaurant opens for business to the public. The franchisor 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 Granted: The general area in which the restaurant will be located may be a city or an area bounded by streets or roads. Franchisees 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 unless within such mile there is a population density of 25,000 or more people or a commuter-adjusted daytime population density of 25,000 or more people, as based on the most current United States census. In such case, the territory may be reduced based on a case-by-case basis through negotiations of the parties. The franchisor will not operate company-owned outlets or grant franchises for a Hungry Howie’s restaurant having its physical location 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.

Obligations and Restrictions: Franchisees are required to name and maintain a “designated franchisee” at all times. The designated franchisee shall not be changed without prior written consent. the designated franchisee shall be solely responsible for communicating with the franchisor directly (or its affiliates or a designated supplier) any matters relating to the Franchise Agreement, including required notices, defaults, modifications and amendments. Franchisees are required to name and maintain an “operator” at all times. The operator shall not be changed without prior written consent. The operator shall be responsible for and diligently devote his best efforts to the operation of the restaurant. Franchisees are required to sell only the specified menu items at the restaurant and must sell all menu items at the restaurant. Franchisees are required to use the specified packaging only in the sale and dispensing of menu items.

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

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

Estimated 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)	$2,000	$5,100
Security Deposits	$0	$5,100
Leasehold Improvements	$253,000	$327,000
Architectural Drawings & Local Plan Review Fees	$11,600	$29,750
Equipment and Fixtures	$106,124	$172,837
Point of Sale System – Hardware Subscription	$3,579	$3,678
Point of Sale System – Software as a Service	$444	$567
Opening Inventory	$12,500	$14,250
Insurance	$776	$1,200
Security Deposits – Utilities	$0	$500
Exterior Signage	$9,450	$20,226
Digital Displays	$2,400	$6,200
Travel and Living Expenses During Training	$2,500	$3,500
Additional Funds - 3 Months	$2,130	$20,000
ESTIMATED TOTAL	$431,873	$629,908

 
Other Fees

Type of Fee	Amount
Royalty Fee	5.5% of gross sales but not less than $360 per reporting period.
Marketing Fee	7% of gross sales but not less than $721 per reporting period.
Administrative Fees	$50-$500
Annual Meeting Fee	$1,000
Attorney’s Fees	Varies.
Audit Invoice	Twice the underpayment plus the cost of the audit.
Seminar Fee	$250
FI Late Fee	$250 per accounting period or any fraction thereof until the financial information is provided.
HowieCast Fee	$3.99 per reporting period.
Insurance Fee	$250 per accounting period or any fraction thereof until fully compliant with the Franchise Agreement’s insurance coverage requirements.
Interest Fee	1.25% of the applicable outstanding amount due to the franchisor per reporting period or any fraction thereof.
Late Fee	5% of the amount due.
NSF Fee	$40, currently. The cost for checks returned “non-sufficient funds.”
Products	Varies.
Re-Inspection Fee	$2,500 plus our out-of-pocket expenses, which may vary.
Relocation Fee	$7,500
Renewal Fee	$1,000
Re-Opening Marketing Fee	Up to $15,000, depending on circumstances.
Replacement Training Fee	25% of the then-current franchise fee (currently $6,250) per person.
Securities Offering Review Fee	Reimbursement of the franchisor’s out-of-pocket costs and expenses.
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.
Training Fee	Up to $5,000.
Training Fee – Remote	Up to $10,000.
Transfer Fee	Currently, $1,250; $6,250; or $12,500, depending on circumstances (based on the then current franchise fee).
Technology Fee	0.25% of gross sales but not less than $25 per reporting period.

The above information has been compiled from the FDD of Hungry Howie’s. Year of FDD: 2024.

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