Hungry Howie's Pizza & Subs Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$431,873 - $629,908
Franchise Fee
$12,500
Total US Locations
524
Business Summary
Hungry Howie's grants franchises for the right to operate a retail carry-out and delivery restaurant that specializes in selling pizza, submarine sandwiches, calzone-style subs, salads, desserts, and beverages. Hungry Howie's restaurants operate under the brand names 'Hungry Howie's®', 'Hungry Howie's® Pizza' or 'Hungry Howie's® Flavored Crust® Pizza'. The brand also offers Non-Traditional Restaurants, which can be located in venues such as airports, malls, or food courts, and these may offer a more limited menu and fewer or no delivery services.
Corporate History
Hungry Howie's Pizza & Subs, Inc. was incorporated in Michigan on December 21, 1981. The company began offering franchises for its restaurants in 1982. It has several affiliates, including Hungry Howie's Distributing, which supplies franchisees, and H.H. Pizza, Inc., which operates under a license agreement for Florida. More recently, Hungry Howie's Dough Raiser Program, LLC and Hungry Howie's Gift Card Program, LLC were formed in 2014 to operate consumer-driven fundraising and gift card programs.
Financial Overview
Investment Range
$431,873 - $629,908
Franchise Fee (Low)
$12,500
Franchise Fee (High)
$25,000
Royalty %
5.5%
Marketing %
7%
Equipment Costs (Low)
$106,124
Equipment Costs (High)
$172,837
Working Capital
$11,065
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Hungry Howie's Pizza & Subs, Inc. appears to be in a stable financial position. The company reported cash and cash equivalents of approximately $6.7 million at the end of 2023. While operating income and net income saw a decrease in 2023 compared to 2022 and 2021, the company remains profitable, with a net income of $7 million in 2023. Total assets and stockholders' equity also show stability. The independent auditor issued an unqualified opinion on the consolidated financial statements, indicating that they present fairly, in all material respects, the company's financial position and results of operations.
Financing Details
Hungry Howie's Pizza & Subs, Inc. does not offer direct or indirect financing to its franchisees. Neither the franchisor nor its affiliates will guarantee a franchisee's note, lease, or other financial obligations. However, upon request, Hungry Howie's will provide prospective franchisees with a list of lenders or other third parties that may be able to assist in securing financing.
Performance Metrics
Total US Locations
524
Franchised Units
491
Corporate Units
33
Avg Square Footage
1,450
Franchising Since
1982
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Hungry Howie's Pizza & Subs, Inc. has no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document. This means Hungry Howie's has no material litigation history to report.
Bankruptcy History
Hungry Howie's Pizza & Subs, Inc. has no bankruptcy history to disclose in Item 4 of its Franchise Disclosure Document. No bankruptcy proceedings involving the franchisor or its key personnel are required to be reported.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Hungry Howie's franchisees must provide written notice between 6 and 12 months before the initial term expires. They must not be in default of any agreements with Hungry Howie's, its affiliates, or Designated Suppliers, and must not have received three or more default notices during the initial term. Franchisees must also provide proof of lease extension or an approved relocation, obtain all necessary governmental licenses, complete any required Upgrades at least 30 days prior to the term's expiration, execute a new franchise agreement, pay a $1,000 Renewal Fee, and sign a general release of claims against Hungry Howie's and its affiliates.
Training & Support Program
Franchisor Assistance
Hungry Howie's provides a range of assistance to its franchisees. Before a restaurant opens, Hungry Howie's helps with site selection and lease negotiation, assists in developing architectural drawings, inspects the restaurant for conformity, and coordinates the opening date. It also provides an Operator Training Program and a Designated Franchisee Training Program, along with initial advertising and grand opening promotions, and access to an operations Manual. After opening, ongoing assistance includes notifying franchisees of required upgrades, offering relocation assistance, making a Continuing Training Program available, identifying approved suppliers, administering marketing funds, protecting the brand's trademarks, and providing approvals for transfers. The franchisor also offers periodic consultations on restaurant operations, though without a fixed schedule.
Initial Training Hours
167
Training Location
Hybrid: remote and in-person in Metropolitan Detroit Area, MI
Ongoing Support
After opening, Hungry Howie's provides ongoing assistance including written notification of required upgrades and relocation assistance if needed. The franchisor makes a Continuing Training Program available, which may be conducted in various locations within the continental U.S. or remotely via an electronic platform, and franchisees are responsible for their own expenses. Hungry Howie's also identifies Designated Suppliers, administers the marketing funds, protects the brand's trademarks against infringement, and provides approvals for transfers. Additionally, Hungry Howie's offers periodic consultations on restaurant operations, though these do not follow a fixed schedule or frequency.
Franchise Requirements
Ideal Candidate Profile
Hungry Howie's seeks individuals who will designate a "Designated Franchisee" (an owner with at least 15% ownership interest overseeing the business, including employment practices) and an "Operator" (an individual personally involved in the day-to-day operations of the restaurant). Both the Designated Franchisee and the Operator must be fluent in English, capable of communicating adequately (both orally and in writing) with the franchisor, customers, employees, and government representatives. Hungry Howie's recommends direct participation by the franchisee in the restaurant's operations. The training provided covers essential aspects like product preparation, handling, packaging, delivery, marketing, business development, sales, customer service, financial and inventory management, and general operations.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
exclusive
Territory Size Requirements
Hungry Howie's franchisees are granted an exclusive territory typically defined as a one-mile radius around their restaurant. However, this territory may be reduced on a case-by-case basis through negotiation if the area within that one-mile radius has a population density of 25,000 or more people, or a commuter-adjusted daytime population density of 25,000 or more, based on the most current U.S. census data.
Staffing Notes
Hungry Howie's Pizza & Subs, Inc. states that the franchisee has the sole responsibility and authority for all employment practices, including hiring, training, promotion, and working conditions of their restaurant staff. Hungry Howie's is not considered the employer or joint employer of the franchisee's personnel. Franchisees are required to ensure their employees are properly trained to provide competent, courteous, and knowledgeable service, and to maintain good customer relations. Employees must wear standard uniforms as described in the Manual and present a neat and clean appearance. The franchisee must conspicuously identify themselves as the 'INDEPENDENTLY OWNED AND OPERATED' employer in all dealings with staff and on employment-related materials, explicitly stating that Hungry Howie's is not their employer.