Start a Habit Burger & Grill Franchise in 2024

2024 Franchise 500 Rank: #117 Ranked #173 last year

Initial investment: $1.7M - $2.8M

Units as of 2024: 382 28.2% over 3 years

Habit Burger & Grill Franchise

Is there anything better than smelling a delicious burger sizzling on the grill? Add the aroma of perfectly seasoned chicken, steak and tuna, and you have the unbeatable combination Habit Burger & Grill offers.

With a menu chock-full of delicious hamburgers, chicken and tuna sandwiches and numerous side dishes, it is no wonder you are considering opening a franchise with them.

Read on for everything you need to know about becoming an entrepreneur and opening your franchise with Habit Burger & Grill.

When did Habit Burger & Grill open?

Started in 1969 in Goleta, California and known for its fast casual dining experience, Habit Burger & Grill (originally called The Habit) expanded in 1996 to include a second location in Santa Barbara, California.

Fast forward to 2020, when the company was purchased by its parent company Yum! Brands, who also own Taco Bell, Pizza Hut and KFC. By 2021 they opened their 300th location, including locations in Cambodia and China.

In 2022 Habit Burger & Grill won the prestigious Franchise Times Zor Award as “Top Franchise to Buy” for the quick-service burger category. They were named one of America’s favorite restaurant chains by Newsweek.

What kind of food does Habit Burger & Grill serve?

Known for their high-quality ingredients, using the freshest produce available and providing a world-class customer experience, Habit Burger & Grill chargrills their entrees to perfection.

Their mouthwatering, award-winning Charburger is made with 100% ground beef and grilled over an open flame. Their line-caught sushi-grade ahi tuna, fresh chicken and marinated steak entrees only add to the mass appeal of this establishment, as there is something for even the most discerning connoisseur.

All the entrees are professionally chargrilled over an open flame, which seals in the flavor in a way you can only get from flame-grilling. But The Habit Burger Grill doesn’t just stop at entrees.

They have numerous delicious side options to choose from as well, including:

Crispy chicken bites.
French fries.
Onion rings.
Sweet potato fries.
Tempura green beans.
Caesar and side salads.

Who is the ideal franchise candidate for Habit Burger & Grill?

If you are interested in opening a franchise with Habit Burger & Grill, there are specific requirements franchise owners need to meet. Read on to see if you qualify for this exciting franchise opportunity.

Local

The ideal franchise owner should live and work in the market they want to develop.

Restaurant Experience

Habit Burger & Grill looks for franchisees with extensive casual restaurant operations experience. The ideal candidate will have experience owning and operating multiple restaurant locations in the fast-casual or full-service industry.

Financial Capabilities

The potential franchisee must meet the minimum initial investment requirements to open multiple restaurants in their desired territory. This requires a net worth of $3 million and a cash requirement of $1 million.

Resources

The candidate should have the necessary tools and funds to develop the restaurant from real estate purchase to building construction to operations. This includes a working knowledge of your territory's real estate and construction laws. The franchisee will have a prototype of the exterior and interior restaurant design, construction practices and recommended vendors.

Commitment

A successful franchise owner needs to be devoted to the business and involved in the operation of the franchise on a full-time basis.

What are the steps to ownership for Habit Burger & Grill?

To take part in this franchise opportunity, there are specific steps you need to follow to be approved to open your own Habit Burger & Grill franchise. Typically, this approval process takes between three and six months to complete.

Inquiry

First, you must fill out the franchise inquiry form to learn more about becoming a multi-unit franchisee of Habit Burger & Grill.

Initial discovery call

Once you have filled out the inquiry form and it has been received, you will be contacted by a franchise development team member to learn more about your restaurant and business experience. More information regarding Habit Burger & Grill will be provided, and the next steps will be explained.

Complete application

After the initial discovery call, if both parties are interested in proceeding, you will receive a franchise application to fill out and an FDD (Franchise Disclosure Document) for you to review. Once submitted, the process will continue to move ahead.

Application review meeting

The head of the franchise team will then make an appointment with you to review your application. Be prepared that a business plan, organizational chart and background check may be requested.

Conversation with the CEO and CFO

After you meet with the head of the franchise team, the next step is to ask the CEO and CFO any questions you might have about the company and moving forward.

Discovery day

Here you will go to Habit Burger & Grill Restaurant Support Center to meet with the executive team and learn about their roles with the company and how they will support you as a franchisee.

During the day, you will visit several restaurant locations and discuss ownership and the franchise's operation.

Finalize details

To finalize the partnership details, a discussion will occur to ensure both parties are on the same page regarding the partnership, the LOI (Letter of Intent) and the development agreement. Both parties will also go over the Franchise Disclosure Document.

Agreement finalized

At this stage, the agreement is executed, and you are officially a Habit Burger & Grill franchise owner.

What costs are involved in opening a franchise?

Opening your own Habit Burger & Grill franchise involves a few different costs. Read on to learn all the investment information you need to know about opening your franchise location.

Initial Franchise Fee: $35,000.
Royalty Fee: 5.5% of gross sales.
Marketing Contribution Fee: up to 4.5% of gross sales.
Development Fee Per Restaurant: $10,000.
Total Investment (before TIA): $1.7 to 2.8 million.

What building options are available?

Once everything has been approved and you are ready to break ground on your new business venture, you have to choose the location and type of building that best suits your needs.

Four options are available when you open a franchise with Habit Burger & Grill.

Freestanding with drive-thru

This option is a freestanding building consisting of approximately 2,500 to 3,000 square feet and equipped with a drive-thru.

Endcap

The endcap option is typically at the end of a strip mall building, and the square footage is flexible.

Endcap with drive-thru

Similar to the standard endcap building, this option comes with 2,400 to 2,800 square feet and added drive-thru option.

Non-traditional

This option is the smallest building plan offered and is 1,200 square feet or less.

Are there multiple revenue streams included?

With over 50 years of restaurant experience, Habit Burger & Grill has incorporated numerous revenue streams into its business plan to help franchise owners succeed.

To increase sales and provide the most convenient customer services experience possible, when you open a Habit Burger & Grill franchise, you will have the following revenue streams at your fingertips:

In-store, take-out and drive-thru options.
Online ordering through the mobile app.
Online ordering through Habit Burger & Grill website.
Ordering over the phone by calling the restaurant directly.
Placing an order through a third-party delivery app.
Utilizing one of the in-store kiosks.
Placing an order and selecting the curbside pick-up option.

Does Habit Burger & Grill provide training?

When you open a franchise with Habit Burger & Grill, you will receive 500 hours of training, which includes everything you need to know regarding the back of the house, front of the house and the learning management system. You will also receive marketing support to help with the following:

Ad templates.
Social media.
Website development.
Loyalty program/app.
Regional advertising.
SEO (search engine optimization).
Email marketing.

Open a franchise with Habit Burger & Grill today

If you are looking at branching out into the restaurant industry and are looking for a well-known, chef-driven brand with a creative and innovative menu, then opening a franchise with Habit Burger & Grill might just be for you.

With multiple revenue streams, an expansive menu, numerous building options and a well-known reputation for top-notch customer service, you could soon run a successful franchise with Habit Burger & Grill.

Check out Entrepreneur’s other articles for more information about Habit Burger & Grill and other franchise opportunities.

Company Overview

About Habit Burger & Grill

Industry	Food
Related Categories	Hamburgers
Founded	1969
Parent Company	Yum! Brands
Leadership	Shannon Hennessy , CEO
Corporate Address	1 Glen Bell Wy. Irvine, CA 92618
Social	Facebook, LinkedIn, Instagram, YouTube, TikTok

Business Overview

Franchising Since	2013 (11 years)
# of employees at HQ	216
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises worldwide.
# of Units	382 (as of 2024)

Information for Franchisees

Here's what you need to know if you're interested in opening a Habit Burger & Grill franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$35,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$1,658,000 - $2,849,000
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$2,000,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$750,000
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	5.5%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	2%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	300-500 hours
Ongoing Support	Meetings & Conventions Grand Opening Online Support Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Ad Templates Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes