Business Model: Premium hamburgers, sandwiches, salads, and related services
Total Investment: $1,236,000 to $1,659,000 (varies by location and features)
Franchise Fee: $35,000 (non-refundable)
Royalties: 5.5% of Gross Sales
Advertising Fund Contribution: 0.9% (up to 4.5% max)
Additional Costs: Merchandise, initial training, transfer fees, product/service purchases, testing, computer systems support, audit, interest, late fees, maintenance, and refurbishing costs
Business Description
The Habit Burger Grill franchise offers a chance to operate a restaurant renowned for premium quality hamburgers, sandwiches, salads, and related products. The franchise's hallmark is its commitment to high-quality ingredients and proprietary recipes, ensuring a unique dining experience. You're required to adhere to their established business formats, methods, and standards.
Financial Commitment
Initial Investment: Expect to invest between $1,236,000 and $1,659,000, depending on the restaurant type and location. This includes a franchise fee and other startup costs.
Franchise Fee: A standard initial fee of $35,000, used to cover site evaluation and restaurant development support.
Royalty Payments: Charged at 5.5% of Gross Sales, due monthly. Gross Sales include all revenue streams, excluding certain items like sales taxes and tips.
Advertising Contribution: Currently set at 0.9% of Gross Sales, with a potential increase up to 4.5%. Total annual contributions for advertising and local marketing won't exceed 4.5% of Gross Sales.
Other Fees
Merchandise Costs: Charged for materials like menu panels and advertising items.
Initial Training Fee: Around $500 per day plus expenses. This is essential for your management team before opening.
Transfer Fee: 50% of the current initial franchise fee for transferring the franchise.
Product and Service Purchases: As per ongoing operational needs from designated vendors.
Testing Fees: For new products or supplier inspections proposed by you.
Computer Systems Support: Around $325 per month, subject to increase based on costs.
Audit and Late Fees: For inspections, overdue payments, and late submissions of required reports.
Maintenance and Refurbishing: As billed for maintaining restaurant standards.
Conclusion
Investing in The Habit Burger Grill franchise offers a robust business model with a focus on quality and customer satisfaction. The financial commitment includes various fees, with a significant initial investment. Continuous support in marketing, training, and technology is provided, ensuring franchise success. Always review the Franchise Disclosure Document and consult with a financial advisor for a thorough understanding of the commitment and potential returns.
The Habit Burger Grill Franchise Disclosure Documents
Franchise Disclosure Documents are available for free download. 3-page PDF files are available without entering your name and email address, and full-length PDF files are available for download after entering your name, phone, and email address.
The Most Recent FDD for The Habit Burger Grill is From 2022.