Huckleberry's Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$482,000 - $1,647,000
Franchise Fee
$17,500
Min Cash Required
$25,000
Total US Locations
34
Business Summary
Huckleberry's operates restaurants that specialize in Louisiana-inspired breakfast and lunch dishes. The business uses a distinctive operating system, including unique interior and exterior designs, specific décor, color schemes, graphics, fixtures, furniture, proprietary products, recipes, and standardized operating procedures. These elements collectively aim to provide a consistent customer experience under the Huckleberry's trademarks.
Corporate History
Heritage Restaurant Brands, LP was formed in California on August 8, 2016, and began offering Huckleberry's franchises in September 2016. The company's lineage traces back to predecessor entities, with Brooks Restaurant Group, Inc. having been formed on April 23, 1973, operating 'Perko's' restaurants since September 1973 and offering franchises from June 1977. Brooks Restaurant Group, Inc. also operated 'Cool Hand Luke's' restaurants since December 2004. BRG Franchising, Inc., a predecessor to Heritage Restaurant Brands, LP, began selling 'Perko's' franchises in 1991 and 'Cool Hand Luke's' franchises in 2005, and also sold 'Huckleberry's' franchises. Heritage Restaurant Brands, LP's general partner is Heritage Restaurant Brands, LLC, formed on May 20, 2016. Heritage Restaurant Brands, LP began operating its own Huckleberry's outlet through an affiliate in 2022.
Financial Overview
Investment Range
$482,000 - $1,647,000
Franchise Fee (Low)
$17,500
Franchise Fee (High)
$35,000
Minimum Cash Required
$25,000
Royalty %
6%
Equipment Costs (Low)
$285,000
Equipment Costs (High)
$1,290,000
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Heritage Restaurant Brands, LP's financial statements show a partners' deficit of $1,621,614 as of December 31, 2023. While the company generated cash from operating activities ($531,152) for the year ended December 31, 2023, it experienced a net decrease in cash of $309,876 primarily due to significant repayments on related party notes payable and partner distributions. The company maintains substantial related party notes payable, with a current portion of $568,972 due within one year. The independent auditors issued an unqualified opinion on the financial statements, indicating they present fairly, in all material respects, the company's financial position and results of operations.
Financing Details
Huckleberry's does not offer any direct or indirect financing to its franchisees. Additionally, Huckleberry's does not guarantee any notes, leases, or other financial obligations on behalf of its franchisees.
Performance Metrics
Total US Locations
34
Franchised Units
33
Corporate Units
1
Avg Square Footage
4,000
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
Huckleberry's, as Heritage Restaurant Brands, LP, has no litigation required to be disclosed in Item 3. However, its predecessor, Dynaco, Inc., filed for Chapter 11 bankruptcy reorganization on November 21, 2011. The bankruptcy court approved the reorganization plan on September 5, 2012, and it was confirmed on November 30, 2012. A final decree was entered on August 15, 2013, and all obligations under the plan were completed as of December 31, 2015. There are no other bankruptcy events reported for the current franchisor or its management.
Bankruptcy History
The franchisor, Heritage Restaurant Brands, LP, itself has no bankruptcy history. However, its predecessor, Dynaco, Inc., which was previously Brooks Restaurant Group, Inc., filed for Chapter 11 bankruptcy on November 21, 2011. This filing was made to reorganize due to borrowing obligation failures and foreclosure proceedings by a bank. The bankruptcy court approved Dynaco, Inc.'s reorganization plan on September 5, 2012, which was then confirmed by creditors and the court on November 30, 2012. The final decree for the case was entered on August 15, 2013, and all obligations under the plan were completed by December 31, 2015. This bankruptcy event pertains to a predecessor entity and is not ongoing.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Huckleberry's franchise, franchisees must be in full compliance with their agreement and have committed no more than three defaults during the current term. They need to provide written notice to the franchisor at least six months before the term ends, pay a renewal fee of $10,000, and sign a new franchise agreement. This new agreement may have different terms and conditions from their original one. Franchisees must also continue to have the right to occupy their business location or receive approval to relocate, remodel their restaurant to meet current brand standards, execute a general legal release, and comply with all current qualifications and training requirements, including any additional training.
Training & Support Program
Franchisor Assistance
Before opening, Huckleberry's assists franchisees by providing site selection guidelines and approving a location. The franchisor also offers prototypical plans and specifications for the restaurant's design and appearance, access to the Huckleberry's Operations Manual, and a list of required equipment and supplies. The initial training program, which is included in the initial franchise fee for up to two individuals, is conducted at an affiliate or franchised outlet, typically in San Luis Obispo, California. This training also covers employee qualifications and standards. During the opening phase, a trainer provides up to fourteen days of on-site support and supervision, with franchisees responsible for the trainer's travel and living expenses. After opening, Huckleberry's offers optional or mandatory additional training programs and an annual business meeting or convention, typically lasting up to five days per year, with franchisees covering their own expenses and any imposed tuition fees. Remedial on-site training is available upon request or as deemed appropriate, requiring franchisees to reimburse the trainer's per diem fee and expenses. Franchisees also receive individualized consultation and assistance by phone, fax, or email within reasonable limits. Huckleberry's provides samples or digital artwork for advertising and promotional materials, conducts inspections of the restaurant, and updates lists of approved suppliers. The franchisor may also recommend maximum prices for products and services and must approve all franchisee-proposed advertising and marketing materials.
Initial Training Hours
254
Training Location
An existing Huckleberry's restaurant, primarily in San Luis Obispo, California, and one administrative day at the franchisor's headquarters in San Luis Obispo, California.
Ongoing Support
After opening, Huckleberry's provides ongoing assistance through various channels. This includes offering mandatory and/or optional additional training programs, as well as an annual business meeting or franchisee conference, each up to five days per year at a designated location. Franchisees are responsible for their travel, lodging, meals, wages, and any reasonable tuition fees for these programs. If a franchisee requests it or the franchisor deems it necessary, remedial on-site training and assistance at the franchisee's location is provided, with the franchisee covering the trainer's per diem fee and all travel-related expenses. The franchisor also offers individualized consultation and assistance within reasonable limits by telephone, fax, electronic mail, or postal service. From time to time, Huckleberry's provides samples or digital artwork, advertising, and promotional materials. The franchisor conducts inspections of the business to ensure adherence to standards, provides written specifications for equipment and updated lists of approved suppliers, and may recommend maximum prices for products and services. Additionally, Huckleberry's approves or disapproves all advertising, direct mail, and other promotional materials and campaigns proposed by franchisees.
Franchise Requirements
Ideal Candidate Profile
Huckleberry's is seeking individuals who can personally supervise their restaurant, or appoint a qualified General Manager to oversee daily operations while the owner remains actively involved in overseeing the business. The General Manager must successfully complete the initial training program, devote full-time effort to the role, and have no business relationship with competitors. The franchisee, or their principals, must also successfully complete the initial training and any other required courses.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
Huckleberry's grants franchisees an exclusive territory that is defined after the restaurant location is approved. The territory is usually located in a portion of a town, city, or county, identified by contiguous zip codes. Its size is determined individually based on factors like minimum household numbers, average home prices, household incomes, and other demographic information deemed advisable by the franchisor. In densely populated areas, a typical territory might be a two-mile radius, but the size can vary depending on the actual restaurant location.
Staffing Notes
Huckleberry's requires franchisees to adhere to standards for the qualifications and training of their employees, as detailed in the Operations Manual. The General Manager must devote full-time to their role and cannot have conflicting business interests. Key employee roles include General Manager, Host/Hostess, Server, Dishwasher, and Cook. The Operations Manual provides guidance on recruitment, employee selection and development, and outlines personnel policies regarding equal opportunity, sexual harassment, drug/alcohol abuse, employee safety, performance improvement, and termination procedures.