Habit Burger & Grill Franchise
Cost, fees, owner earnings, closure rate and litigation for a Habit Burger & Grill franchise — pulled from the franchisor's own public FDD (2020), not its sales material.
Disclosure honesty
Habit Burger & Grill discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
FY2025: 62 franchisee restaurants averaged $1.87M gross sales; 289 THR restaurants averaged $1.90M. Operating profit ranged 0.4%-27.9% after imputing 5.5% royalty, 2% ad fund, 0.5% local ads. Excludes occupancy, tech, training, debt costs.
What a Habit Burger & Grill franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $35,000 | Item 5 — paid up front, before you open |
| Royalty | 5.5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2.5% 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 | $1,031,500 – $2,864,500 | Item 7 — franchisor's own low/high estimate |
5.5% royalty, 2% ad fund (up to 4.5% total), 0.5% local ads, $600/mo tech, $350/mo computer support, $17.5K renewal.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Habit Burger & Grill system size and owner turnover
| Total outlets | 383 |
| Ceased operations | 12 |
| Terminated by franchisor | 1 |
| Transferred to new owners | 0 |
| Closure rate | 3.1% of outlets |
2025: 12 company-owned closures, 1 franchisee non-renewal, 2 ceased. Overall system growth (+6 outlets).
From Item 20 of the FDD 2020. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Habit Burger & Grill worth it? — how it compares to 164 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $1,031,500 | pricier than 82% of peers |
| Disclosure honesty | Grade B | more honest than 85% of quick service restaurants franchises |
| Closure rate | 3.1% of outlets | worse than 64% of peers |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Habit Burger & Grill
The franchisor's framing: FY2025: 62 franchisee restaurants averaged $1.87M gross sales; 289 THR restaurants average… 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
Habit Burger & Grill franchise — frequently asked
- How much does a Habit Burger & Grill franchise cost?
- The FDD lists a total initial investment of about $1,031,500–$2,864,500, including a $35,000 initial franchise fee.
- How much do Habit Burger & Grill franchise owners make?
- FY2025: 62 franchisee restaurants averaged $1.87M gross sales; 289 THR restaurants averaged $1.90M. Operating profit ranged 0.4%-27.9% after imputing 5.5% royalty, 2% ad fund, 0.5% local ads. Excludes occupancy, tech, training, debt costs. We grade this disclosure B for honesty.
- What are the Habit Burger & Grill franchise fees?
- Habit Burger & Grill's FDD discloses a $35,000 initial franchise fee, a 5.5% royalty on gross sales, a 2.5% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. 5.5% royalty, 2% ad fund (up to 4.5% total), 0.5% local ads, $600/mo tech, $350/mo computer support, $17.5K renewal.
- What is the Habit Burger & Grill franchise profit margin?
- Habit Burger & Grill does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: FY2025: 62 franchisee restaurants averaged $1.87M gross sales; 289 THR restaurants averaged $1.90M. Operating profit ranged 0.4%-27.9% after imputing 5.5% royalty, 2% ad fund, 0.5% local ads. Excludes occupancy, tech, training, debt costs. 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 Habit Burger & Grill franchise failure rate?
- 2025: 12 company-owned closures, 1 franchisee non-renewal, 2 ceased. Overall system growth (+6 outlets).
- How many Habit Burger & Grill locations are there?
- Habit Burger & Grill's FDD reports 383 total outlets, with 12 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Habit Burger & Grill have complaints or lawsuits?
- Habit Burger & Grill 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 Habit Burger & Grill franchise worth it?
- It depends on the numbers, not the pitch. Habit Burger & Grill 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 (2020). FranchiseValidate is independent and not affiliated with Habit Burger & Grill or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.