Franchisel.com — FDD Diligence Memo
HUDDLE HOUSE
Generated 2026-04-06 · 2024 FDD · Government-filed source
HUDDLE HOUSE
2024 FDD Diligence Memo
Composite score based on six FDD-derived dimensions.
Sys Health
6
Contract
6
Red Flags & Key Signals
Net unit loss of -14 in reporting period. Declining networks may signal franchisee dissatisfaction or weak economics.
Review Item 3 narrative for claim types. Franchisee-vs-franchisor suits are a stronger red flag than third-party disputes.
After leaving the franchise, you cannot operate a competing business in this radius. Evaluate the real-world impact on your exit options.
Avg $1,220,655 from government-filed FDD. Transparent disclosure is a positive signal.
Investment Overview
Items 5, 6, 7Total investment range: Not disclosed. Initial fee: $0. Royalty: —. Marketing fund: —.
Item 19 — Revenue
Item 19 — 2024 FDD (government-filed)Item 19 discloses avg revenue of $1,220,655 (Annual).
Sample: WeakThe FDD does not specify how many units were included in this figure.
Item 20 — System Health
Item 20 — 2024 FDDSystem contracting — net -14 units in reporting period.
↓ Contracting14 more units closed or left the system than opened.
Total Units
0
Net Growth
-14
Turnover
0%
Year-over-Year Trends
2024 FDDOpened
+0
Closed
-0
Net
-14
Prior-year Item 19 revenue data not available. Unit data above covers the reporting period in the 2024 FDD.
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19Net sales (not gross)
This Item 19 reports net sales (after returns/discounts). Gross sales figures from other brands will appear higher — not directly comparable.
Profit not disclosed
Item 19 reports revenue only. No expense breakdown is provided. Profit cannot be determined from this disclosure alone.
All units included
Revenue figure includes all reporting units — broadest, most conservative sample basis.
Sample size not specified
The FDD does not state how many units contributed to this figure.
Data is 3 years old
Revenue figures cover 2023 operations — may not reflect current market conditions.
Medium extraction confidence
Revenue figure extracted with medium confidence. Cross-check with source FDD before relying on this number.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
The agreement includes a 2-year, 5-mile post-termination non-compete. Ask franchisees: did you fully understand this when you signed — and do you feel it's fair?
Look for: Whether franchisees feel trapped. High non-compete terms reduce exit flexibility.
Cure period is only 3 days. Ask: have you ever received a default notice? How did the franchisor handle it — were they reasonable?
Look for: A short cure period combined with aggressive enforcement is a serious risk. Look for franchisees who feel supported vs. managed by threat.
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
The FDD does not include audited financial statements. Ask: do you have any visibility into the franchisor's financial health? Have you ever been concerned about the company's stability?
Look for: Even anecdotal signals — changes in leadership, delays in royalty statement processing, reduced marketing fund activity.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Data sources: 2024 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Extracted from 2024 FDD filed with MN CARDS (file #9460). Source: 9460-2024.pdf. · Payback estimates and margin assumptions are editorial — not from the FDD. This memo does not constitute legal or financial advice. Consult a franchise attorney and accountant before signing. Generated 2026-04-06 by Franchisel.com.