The Habit Burger Grill Franchise

Key Takeaways

• Brand: The Habit Burger Grill
• 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

1. 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​​.
2. Franchise Fee: A standard initial fee of $35,000, used to cover site evaluation and restaurant development support​​.
3. 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​​.
4. 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.