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Description
Investment Icon

What Are the Initial Costs to Open a Hungry Howie's Franchise?

To start a Hungry Howie's franchise, you should be prepared for an initial investment ranging from $431,873 to $629,908. This includes a franchise fee of $25,000. Additionally, you’ll need to ensure you have a net worth between $300,000 and $500,000, along with sufficient cash to cover the startup expenses. Understanding these financial commitments is crucial as you explore this franchise opportunity.

Fees Icon

What Are the Ongoing Fees for Hungry Howie's Franchisees?

Hungry Howie's franchisees are required to pay a royalty fee of 5.5% on their gross sales, along with a marketing fee of 7%. These fees contribute to the overall operational costs and support the brand's marketing efforts. Being aware of these ongoing financial obligations is essential for budgeting and maintaining profitability as a franchise owner.

Revenue Icon

What Is the Average Revenue Potential for Hungry Howie's Franchisees?

On average, a Hungry Howie's unit generates annual revenue of approximately $837,770, with a median revenue of $792,354. The revenue can vary significantly, with the lowest recorded annual revenue at $279,096 and the highest reaching $2,027,653. This potential for revenue highlights the opportunity for franchisees to achieve substantial financial returns, depending on their location and operational efficiency.

Breakeven Icon

What Is the Breakeven Time and Investment Payback for Hungry Howie's Franchise?

Hungry Howie's franchisees can expect to reach breakeven within about 12 months of operation. Furthermore, the investment payback period is estimated at just 6 months, indicating a relatively quick return on investment. This rapid payback period can be appealing for aspiring entrepreneurs looking for a franchise that offers a solid financial outlook in a competitive market.

Hungry Howie's Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$300,000 - $500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

6 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$25,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5.5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

7%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$431,873 - $629,908
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$431,873 - $629,908
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$837,770
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$792,354
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$2,027,653
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$279,096
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Food Franchises
Category icon A more specific division within the broader industry.

i Category:

Pizza
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Steven Jackson
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

30300 Stephenson Highway, Suite 200, Madison Heights, Michigan 48071
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

1981
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Hungry Howie's Pizza & Subs Inc.

Hungry Howie's Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

524
The number of locations owned by independent franchisees.

Franchised Units i

491
The number of locations owned and run by the franchisor.

Corporate Units i

33
Units 2021 2022 2023
Total Units 532 534 524
Net Change YoY 2 -10
Franchised Units 499 501 491
Net Change YoY 2 -10
Corporate Units 33 33 33
Net Change YoY 0 0
Investment About

Company Overview

Hungry Howie's is a popular pizza franchise known for its unique flavored crusts and commitment to quality ingredients. Founded in 1973 in Taylor, Michigan, the brand has grown significantly, with over 490 franchised units across the United States. Hungry Howie's focuses on providing a family-friendly dining experience, offering a diverse menu that includes pizza, subs, salads, and more, all made with fresh, locally sourced ingredients.

Potential About

Franchise Investment

The initial investment to open a Hungry Howie's franchise ranges from $431,873 to $629,908. This includes a franchise fee of $25,000. Prospective franchisees should be prepared for ongoing royalty fees of 5.5% of gross sales, along with a marketing fee of 7%. The required cash to start a franchise is between $431,873 and $629,908, with a net worth requirement of $300,000 to $500,000.

Metrics About

Financial Performance

Hungry Howie's franchises have demonstrated strong financial performance, with an average annual revenue per unit of $837,770. The median annual revenue is $792,354, while the lowest recorded annual revenue is $279,096 and the highest is $2,027,653. The breakeven time for new units is approximately 12 months, and franchisees can expect to see a payback on their investment in about 6 months.

Fees About

Operational Structure

As of 2023, Hungry Howie's operates a total of 524 units, comprising 491 franchised locations and 33 company-owned units. The franchise has seen a slight decrease in the number of franchised units over the past few years, indicating a stable yet competitive market environment. The corporate structure supports franchisees with training, marketing, and operational resources to ensure consistency and quality across all locations.

Breakeven About

Marketing Strategy

Hungry Howie's employs a comprehensive marketing strategy that includes a 7% marketing fee to support national and local advertising efforts. Franchisees benefit from a well-established brand presence and targeted promotional campaigns aimed at driving customer engagement and increasing sales. The brand's focus on community involvement also enhances its visibility and reputation within local markets.

Units About

Core Values

Hungry Howie's is dedicated to serving high-quality food while fostering a welcoming and family-oriented atmosphere. The brand emphasizes community engagement, sustainability, and customer satisfaction as core values. By prioritizing these principles, Hungry Howie's aims to create a loyal customer base and a positive impact in the communities it serves, ensuring long-term success for its franchisees.

Frequently Asked Questions

The initial investment for a Hungry Howie's franchise ranges from $431,873 to $629,908, which includes the franchise fee and other startup costs.