H.H. Franchising Systems, Inc. Franchise
Cost, fees, owner earnings, closure rate and litigation for a H.H. Franchising Systems, Inc. franchise — pulled from the franchisor's own public FDD (2007), not its sales material.
Disclosure honesty
H.H. Franchising Systems, Inc. discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
Top 50 locations averaged $4.88M (2025); median $3.31M. Bottom 50 averaged $269K; median $252K. All locations averaged $1.97M; median $1.12M. Single-franchise averaged $996K; median $627K.
What a H.H. Franchising Systems, Inc. franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $49,900 | Item 5 — paid up front, before you open |
| Royalty | 6% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $120,750 – $175,250 | Item 7 — franchisor's own low/high estimate |
Royalty 6%-4.5% tiered; Branding 2%-0.5% tiered; $500-$3,600 minimum; Transfer $10K-$70K
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
H.H. Franchising Systems, Inc. system size and owner turnover
| Total outlets | 362 |
| Ceased operations | 5 |
| Terminated by franchisor | 4 |
| Transferred to new owners | 20 |
| Closure rate | 1.4% of outlets |
5 ceased operations 2025; 4 terminations 2025; 20 transfers 2025; declining NY market
From Item 20 of the FDD 2007. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is H.H. Franchising Systems, Inc. worth it? — how it compares to 50 similar franchises
| Ongoing fees | 8% of sales | steeper than 69% of senior & home care franchises |
| Startup cost | from $120,750 | pricier than 78% of peers |
| Disclosure honesty | Grade B | more honest than 78% of senior & home care franchises |
| Closure rate | 1.4% of outlets | about average |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every senior & home care franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a H.H. Franchising Systems, Inc.
The franchisor's framing: Top 50 locations averaged $4.88M (2025); median $3.31M. Bottom 50 averaged $269K; median $… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
H.H. Franchising Systems, Inc. franchise — frequently asked
- How much does a H.H. Franchising Systems, Inc. franchise cost?
- The FDD lists a total initial investment of about $120,750–$175,250, including a $49,900 initial franchise fee.
- How much do H.H. Franchising Systems, Inc. franchise owners make?
- Top 50 locations averaged $4.88M (2025); median $3.31M. Bottom 50 averaged $269K; median $252K. All locations averaged $1.97M; median $1.12M. Single-franchise averaged $996K; median $627K. We grade this disclosure B for honesty.
- What are the H.H. Franchising Systems, Inc. franchise fees?
- H.H. Franchising Systems, Inc.'s FDD discloses a $49,900 initial franchise fee, a 6% royalty on gross sales, a 2% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. Royalty 6%-4.5% tiered; Branding 2%-0.5% tiered; $500-$3,600 minimum; Transfer $10K-$70K
- What is the H.H. Franchising Systems, Inc. franchise profit margin?
- H.H. Franchising Systems, Inc. does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Top 50 locations averaged $4.88M (2025); median $3.31M. Bottom 50 averaged $269K; median $252K. All locations averaged $1.97M; median $1.12M. Single-franchise averaged $996K; median $627K. Recurring fees alone take about 8% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the H.H. Franchising Systems, Inc. franchise failure rate?
- 5 ceased operations 2025; 4 terminations 2025; 20 transfers 2025; declining NY market
- How many H.H. Franchising Systems, Inc. locations are there?
- H.H. Franchising Systems, Inc.'s FDD reports 362 total outlets, with 5 that ceased operations in the most recent reporting year and 20 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does H.H. Franchising Systems, Inc. have complaints or lawsuits?
- H.H. Franchising Systems, Inc. discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a H.H. Franchising Systems, Inc. franchise worth it?
- It depends on the numbers, not the pitch. H.H. Franchising Systems, Inc. scores B on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2007). FranchiseValidate is independent and not affiliated with H.H. Franchising Systems, Inc. or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.