Habit Burger Grill Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$35,000
Investment required
$1,466,000 - $1,849,000
Royalty fee
5.50%

Habit Burger Grill: Crafting Quality with Every Chargrilled Bite

Habit Burger Grill, founded in 1969 in Santa Barbara, California, is a fast-casual restaurant chain known for its signature Charburgers, which are chargrilled over an open flame. The brand has since grown significantly and is now headquartered in Irvine, California. It began franchising in 2014 and has expanded to over 300 locations worldwide, supported by its parent company, Yum! Brands, Inc.

Habit Burger Grill differentiates itself in the competitive fast-casual space through a commitment to quality, using fresh ingredients, and preparing all items to order. Their menu extends beyond burgers to include freshly prepared salads, sandwiches, and unique sides like tempura green beans and sweet potato fries. 

This focus on quality, combined with a welcoming environment and value-driven pricing, has helped Habit Burger Grill build a loyal customer base and stand out in the crowded burger market.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $35,000
Real Estate/3 Months’ Rent $36,000 - $54,000
Security Deposits $15,000
Construction, Remodeling, Leasehold Improvements, and Decorating Costs $550,000 - $725,000
Furniture, Fixtures, Other Fixed Assets, and Equipment $540,000 - $650,000
Signage $70,000 - $85,000
Opening Inventory and Supplies $40,000 - $50,000
Grand Opening Advertising $10,000
Brand Standard Training Expenses $60,000 - $75,000
Miscellaneous Opening Costs $20,000 - $30,000
Additional Funds - 3 months $90,000 - $120,000
TOTAL ESTIMATED INITIAL INVESTMENT $1,466,000 - $1,849,000

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Number of units

2023
Franchised units

25

30

54

Company-owned units

253

257

277

Total units

278

287

331

Franchise Disclosure Document

Training 

The Habit Burger Grill franchise provides a comprehensive training program designed to ensure franchisees are well-prepared to run successful operations. 

  1. Comprehensive Training Duration: Franchisees undergo 500 hours of training, which covers all aspects of running a Habit Burger Grill restaurant.
  2. Back-of-House Training: This part of the training focuses on kitchen operations, including food preparation, safety standards, and maintaining the quality of the signature chargrilled items and other menu offerings.
  3. Front-of-House Training: Franchisees learn about customer service, including managing the dining area, ensuring a welcoming environment, and delivering excellent hospitality.
  4. Learning Management System: Ongoing education and resources are provided through a learning management system, allowing franchisees to continue improving their operational skills.
  5. Technology and IT Training: Franchisees receive training on using the Habit Burger Grill’s POS systems, integrating delivery services through mobile and kiosk applications, and managing overall restaurant technology and IT systems.

Territory Protection

The Habit Burger Grill franchise offers territory protection to its franchisees, which is an essential aspect of their franchise agreement.

This protection ensures that franchisees have exclusive rights to operate within a specific geographic area, preventing other franchisees or corporate locations from opening within that protected territory.

This allows franchisees to develop their market without direct competition from another Habit Burger Grill location nearby.

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