A&W Restaurants vs Huddle House
Compare FDD disclosures, investment range, royalty and ad fund burden, SBA lending outcomes, Item 20-style unit movement, Item 19 transparency, and data-confidence caveats with a permanent shareable URL.
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A&W Restaurants
Casual Dining
Investment
$470K to $2.2M
Franchise fee
$35,000
Item 19 status
Revenue Only
Confidence
High Confidence
Units
143
Huddle House
Casual Dining
Investment
$381K to $1.7M
Franchise fee
$35,000
Item 19 status
Limited Data
Confidence
High Confidence
Units
216
Lower entry cost
Leans right
Based on disclosed minimum initial investment only; buyer cash needs may be higher after working capital, lease, and financing assumptions.
Better disclosed economics
A&W Restaurants
Uses the same Item 19 transparency hierarchy shown on franchise pages and rankings.
Lower SBA default risk
Leans left
Treat low-loan brands carefully; sample size and SBA borrower mix matter.
| Metric | A&W Restaurants | Huddle House |
|---|---|---|
Franchise Fee From disclosed FDD fee data when available; excludes buyer-specific legal, diligence, and financing costs. | $35,000 | $35,000 |
Min Investment Lower bound of disclosed initial investment range, not a recommended capital budget. | $470K | $381K |
Max Investment Upper end of FDD range; still reconcile to site, lease, buildout, and working-capital assumptions. | $2.2M | $1.7M |
Royalty Rate Ongoing royalty burden before local store economics and owner salary. | 5.0% | 4.8% |
Ad Fund Rate National/brand fund rate when disclosed; local marketing may be additive. | 4.5% | 3.5% |
Total Ongoing Burden Royalty plus ad fund when available. | 9.5% | 8.3% |
Median Revenue (Item 19) Only meaningful when the franchisor provides an Item 19 financial-performance representation. | $961K | $810K |
Cash-on-Cash Return Estimated when revenue and margin assumptions are available. | 0.4% | 1.4% |
Payback Period | 273.6 yrs | 73.9 yrs |
Revenue per Dollar Invested | 0.73x | 0.77x |
Franchised Units Latest disclosed franchised-unit count in the corpus. | 143 | 216 |
1-Year Net Unit Change Item 20-style system movement signal; investigate transfers, closures, and refranchising before assuming organic growth. | N/A | -3 |
Net Unit Growth Rate | N/A | -1.3% |
Net Closure Rate Net closure proxy based on disclosed unit change. | N/A | 1.4% |
SBA Default Rate Historical SBA performance for matched loans, not a prediction for a new buyer or location. | 0.0% | 18.5% |
SBA Loan Count Use this to judge whether SBA default data is statistically meaningful. | 2 | 35 |
Average SBA Loan Size | $223K | $681K |
Item 19 Status Canonical transparency badge used across franchise, ranking, and compare surfaces. | Revenue Only | Limited Data |
Has Item 19 | ✓ Yes | ✓ Yes |
Data Confidence Derived from the same data-quality thresholds used on franchise pages. | High Confidence · 100/100 | High Confidence · 100/100 |
What stands out
- • A&W Restaurants discloses an initial investment range of $470K to $2.2M, while Huddle House discloses $381K to $1.7M. Treat these as FDD ranges, not a full purchase budget.
- • A&W Restaurants shows an Item 19 financial-performance disclosure; Huddle House shows an Item 19 financial-performance disclosure. Missing Item 19 data should narrow confidence, not automatically kill a brand.
- • A&W Restaurants has 143 franchised units versus 216 for Huddle House; use one-year net unit movement and closure proxies as early diligence signals, not final underwriting.
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Last updated: May 2026