How much does it cost to open a HuHot Mongolian Grill?

We are full-service sit-down restaurants, which can seat between 150-200 guests. Our buildout and Furniture, Fixture and Equipment package costs are very low relative to our average location sales volumes. A typical (non-HuHot) restaurant hopes to have a 1:1 relationship between annual sales and opening costs. Meaning, if it costs $2 million to open the restaurant, the hope is to achieve sales of approximately $2 million per year. It costs between $777,000 and $967,000 to open a HuHot location. This is a big number, but small relative to our average unit volume of approximately $1.9 million. This means the relationship between sales and opening costs is at least 2:1 for HuHot– about twice industry average.

Does HuHot offer a finance program?

No. But HuHot is a registered franchisor with the SBA. The Franchise Registry is a national online listing of approved franchise systems,  like HuHot Mongolian Grills, LLC, whose franchisees receive expedited loan processing when applying for financial assistance from the U.S. Small Business Administration (SBA).  By centralizing the review process, the Franchise Registry allows the SBA to make consistent eligibility decisions regarding franchise systems, to cut red tape in the system, and to speed access to SBA financial assistance.  Small business owners get better service and quicker loans.

How long does it take to open my own HuHot?

The biggest factor in determining your timetable is securing a location. In some markets acceptable locations can be identified quickly, in others it might take 6-12 months. Assuming a location can be found quickly, it takes about nine months to prepare plans, submit plans to local review boards, construction and training.

How do I submit a piece of real estate for a potential HuHot location?

What sort of operational procedures and forms are available to me?

We have a variety of electronic forms you can use to help summarize sales, to control labor and inventory along with other business aids we or other franchisees have developed to help improve efficiencies. What sort of opening assistance will I receive?You’ll receive assistance throughout the entire opening process. We’ll help you with a business plan. We’ll provide advice as to how you should set up your accounting systems. We’ll help you select a location, and assist you during design and construction. Our Opening Team will be on site approximately one week prior to opening through one week after opening. A smaller opening team can stay even longer if additional assistance is needed.

What sort of day-to-day guidance do I receive?

As previously mentioned, one of your most valuable tools is other franchisees. We have franchise conventions where you get to meet and develop relationships with other franchisees. Often questions that you direct to us will be re-directed to other franchisees. For example: “I know franchisee X is dealing with this same situation. I’ll forward this email to them and inquire as to how they are handling this.” And of course you’ll receive our Operations Manual and have easy access to our Operations Department via phone, instant message, email and the franchise discussion forum.

What about advertising and marketing?

We charge you a 0.5% marketing fee that goes toward the production of marketing materials available to you. The marketing fund helps produce television and radio advertising, manages the website, coordinates HotClub member emailings, and prepares printed materials, such as menus and in-store promotions. In addition, a marketing committee of elected franchisee representatives holds regular teleconference to discuss the needs and interests of all franchisees. As an owner, you are responsible for costs associated with the placement of any advertisements you run – i.e. the cost of TV and radio ads, newpaper advertising, billboard rentals, etc.

Am I required to buy equipment, supplies, etc. from HuHot?

We do require that you use certain vendors during construction and for your furniture, fixture and equipment package. We also have an approved supplier for our proprietary sauces.Beware! Many franchises require you use certain vendors because they have negotiated kickback structures. These arrangements often exist with food vendors as well, increasing food costs and decreasing your profitability. We receive zero consideration from our vendors, so all cost savings we negotiate are passed on directly to you. These vendors are required so we can consolidate our buying power to obtain better pricing or because they provide proprietary services (e.g. the artist who paints the murals at each location.)

May I speak with your existing franchisees?

Yes. You may talk to every single one of our franchisees – and we encourage you to do so. Not only may you speak to them now, but as a franchisee you’ll communicate with other franchisees regularly.  One of the most important benefits of a franchise is being able to communicate with other restaurant professionals (many with decades of experience) about operational best practices. We do a lot as a franchise to foster this communication among franchisees.

How do I get started?

First you need to fill out and email the Request for Consideration Form to franchise_info@huhot.com. Upon receipt and review of your application, you will be contacted by Molly Vap O’Shea, VP of Franchise Development to discuss opportunities. If you qualify, and once the necessary disclosure requirements have been met, the Franchise Agreement may be signed.