Hungry Howie’s Pizza Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$292,000

-

$567,000

LOCATIONS

527

Emily

Updated

April 11, 2024

Is

Hungry Howie’s Pizza

a franchise?

Yes,
Hungry Howie’s Pizza
currently
accepts
franchise
applications

Hungry Howie’s Pizza, an iconic name in the pizza franchise industry, stands out for its innovative approach to pizza-making and its comprehensive franchise support system. With a history dating back to 1973, when it was founded by James Hearn, Hungry Howie’s has grown from a single store in Taylor, Michigan, to across 20 states, making it a significant player in the American pizza chain landscape.

The brand is headquartered in Madison Heights, Michigan, and began offering franchise opportunities in 1983, indicating a solid track record of expansion and franchisee support. What sets Hungry Howie’s apart in the competitive pizza industry is its unique Flavored Crust® pizza, a concept they pioneered, which involves baking flavor right into the pizza crust.

This innovation, along with a focus on flavor innovation, exceptional food quality, and a diverse menu that includes not only pizza but also oven-baked subs, Howie Bread®, fresh salads, Howie Wings®, and a range of desserts and beverages, has helped Hungry Howie’s create a distinctive identity in the market.

The brand's emphasis on managing costs to optimize store profitability offers franchisees a promising opportunity to succeed. In summary, Hungry Howie’s Pizza offers a compelling franchise opportunity for entrepreneurs interested in joining the pizza industry. With its proven business model, innovative product offerings, and strong brand recognition, Hungry Howie’s positions its franchisees for success in the bustling quick-service restaurant sector.

How many

Hungry Howie’s Pizza

franchises

are there?

In 2022, there were
527
outlets in
the United
States, of which
494
are franchises, and
33
are corporate-owned.

What are the

Hungry Howie’s Pizza

franchise

fees?

Advertising fee

7.00%

Initial Franchise Fee ($25,000)

The initial franchise fee to start a Hungry Howie’s Pizza franchise is $25,000.

Royalty Fee (5% of Gross Sales)

Franchisees are required to pay a royalty fee, which is calculated as 5% of their Gross Sales.

Marketing Fee (7% of Gross Sales)

The Marketing Fee is set at 7% of Gross Sales. This fee is allocated in the following manner:

  • National Marketing Fee (1% of Gross Sales): One-seventh of the Marketing Fee, equivalent to 1% of Gross Sales, is allocated as the National Marketing Fee and goes into the National Marketing Fund.
  • Local Marketing Fee (6% of Gross Sales): The remaining six-sevenths of the Marketing Fee, which is equivalent to 6% of Gross Sales, is allocated as the Local Marketing Fee. This fee is deposited into the Local Marketing Fund and is used for local marketing initiatives. The allocation between the National and Local Marketing Funds can vary, and the company has the discretion to modify the allocation as needed.

Transfer Fee ($7,500)

In the event of a franchise transfer, a fee of $7,500 is applicable.

Renewal Fee ($10,000)

For franchisees looking to renew their franchise agreement, a renewal fee of $10,000 is charged.

Insurance ($1,000,000 per occurrence)

Franchisees must maintain a comprehensive general liability insurance with limits of at least $1,000,000 per occurrence.

Supply Chain Fee (0.75% of Gross Purchases)

Franchisees are required to pay 0.75% of their Gross Purchases as a Supply Chain Fee.

Training Fee ($1,000 per person)

For additional training, franchisees are charged $1,000 per person.

Additional Assistance Fee ($500 per day)

If franchisees require additional assistance, a fee of $500 per day is charged.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Hungry Howie’s Pizza

franchise?

It costs between
$292,000
and
$567,000
to start a
Hungry Howie’s Pizza
franchise.

For those considering this franchise opportunity, the total investment required to kick-start the operation of a Hungry Howie’s franchised business, including Non-Traditional Restaurants, ranges between $292,129 and $567,248. Within this investment range, an amount between $70,500 and $100,000 must be directed towards the franchisor or its affiliate(s).

Below, we provide a detailed breakdown of the costs associated with this investment.

Type of Expenditure Amount
Franchise Fee $12,500 - $25,000
Franchise Grand Opening Fee $15,000
Real Estate $1,525 - $4,300 per month
Security Deposits $1,525 - $8,607
Leasehold Improvements $148,000 - $275,999
Architectural Drawings & Local Plan Review Fees $4,300 - $17,300
Equipment and Fixtures $83,948.19 - $179,768.79
Point of Sale System – Hardware Subscription $3,579 – $3,678
Point of Sale System – Software-As-A-Service Subscription $444 - $567
Opening Inventory $12,000 - $19,000
Insurance $705 - $3,698
Security Deposits - Utilities $0 - $1,000
Exterior Signage $4,103 -
Digital Displays $2,400 - $3,900
Travel and Living Expenses During Training $0 - $4,800
Additional Funds - 3 Months $2,100 - $20,000
Total $292,129 - $567,248

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Hungry Howie’s Pizza

provide

training

to its

franchisees?

Yes,
Hungry Howie’s Pizza
provides
training

Before a franchisee can open a Hungry Howie’s Pizza outlet, they must undergo and successfully complete the brand's training program. Franchisees or their designated operators must undertake the initial training program consisting of three weeks of in-store training and one week of online training.

The operator training is offered at its Michigan headquarters and nearby training store. This training encompasses various facets of running a pizza outlet, including operational techniques, equipment handling, computer software proficiency, and upholding the brand's operational standards.

In addition to the initial training, Hungry Howie’s Pizza provides continuous support and resources to its franchisees. This ensures that they are always updated with the latest operational practices and adhere to the brand's standards.

Does

Hungry Howie’s Pizza

provides

territory

protection?

Franchisees are granted the right to operate a Hungry Howie’s Pizza Restaurant within a specific "Designated Area" as specified in the Franchise Agreement. This Designated Area is solely for site selection purposes and does not confer any territorial exclusivity or protection to the franchisees.

Furthermore, as long as the Franchise Agreement is in effect and there's no default on the franchisee's part, Hungry Howie’s commits not to establish or franchise another Hungry Howie’s Unit with its physical location within the franchisee's Territory. However, there are no restrictions on Hungry Howie’s from soliciting or accepting orders from customers using the Marks or any other trademarks.

Can a

Hungry Howie’s Pizza

franchise

be run as

a passive

investment?

Franchisees of Hungry Howie’s Pizza must be actively engaged in the day-to-day operations of their restaurant. If the franchisee is a business entity, a "Designated Franchisee" must be chosen.

This person should have a significant ownership interest and be responsible for overseeing the general conduct of the business, including employment practices. The Designated Franchisee must also be fluent in English to ensure effective communication with the franchisor.

Additionally, the franchisee must always have an "Operator" in place. This Operator is responsible for the diligent operation of the restaurant and their actions are considered as those taken by the franchisee. Changing the Operator requires prior written consent from the franchisor.

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