Huddle House Offers Multi-Unit Franchise Incentives

Huddle House is offering new financial incentives to attract multi-unit franchise operators. The breakfast chain announced a 0% royalty rate for the first year of operations for franchisees who agree to develop three or more units.

According to a press release from parent company Ascent Hospitality, the brand is also providing discounts on fees for operators who sign multi-unit development agreements. Peter Ortiz, Ascent’s chief development officer, said the incentives reflect the company's faith in the brand and its operators.

New Incentive Details

The primary incentive is a waiver of the standard royalty fee for the first year. The chain is offering an additional perk for accelerated development. Franchisees who open a store at least three months ahead of their contracted date will receive an extra quarter of royalty abatement.

Peter Ortiz stated the goal is to help operators move quickly. "We are seeing increasing interest from accomplished multi-unit operators who know their markets and want to build something lasting," he said in the release.

A Strategy for Growth

The incentives aim to reverse a trend of net unit declines. Huddle House's franchise disclosure document shows a net loss of three stores in fiscal 2024, which ended in May 2025. Its total unit count has fallen from 304 at the start of fiscal 2022 to 269 at the end of fiscal 2024.

The brand is promoting flexible real estate options to attract developers. Company materials state that its streamlined prototypes suit locations ranging from colleges and airports to casinos and travel plazas.

Recent Performance Challenges

Huddle House has struggled with unit growth and sales performance despite some large franchise deals. The chain signed a 20-unit agreement in 2024 and a total of 120 leases over the past three years, yet its store count continued to shrink.

Average unit economics have also weakened. According to its franchise disclosure documents, average sales per restaurant dropped from about $818,000 in 2023 to approximately $775,000 in 2024.

Broader Brand Efforts

To support a turnaround, Huddle House has developed new restaurant prototypes designed for off-premise sales and non-traditional locations. In January, Ascent Hospitality hired Bob Campbell, an experienced casual dining executive, as the brand's president.

The move follows similar efforts by its sister brand, Perkins, which has debuted fast-casual units and undergone a rebrand. The new Huddle House incentives launch as some breakfast-focused chains report stronger growth.