Risk Score
Pending analysis
Investment Range
$351,500 - $555,500
Franchise Fee
$41,250
Total US Locations
2
Business Summary
Baba Saj Restaurant Group LLC grants franchises for limited-service restaurants that prepare and sell a variety of Mediterranean dishes. These offerings include fresh baked pita, flatbreads, shawarma, and vegetarian meals like hummus and falafel. The restaurants operate in a casual retail setting, offering services for pickup, dine-in, and delivery under the Baba Saj trademarks.
Corporate History
Baba Saj Restaurant Group LLC was formed as an Illinois limited liability company on September 27, 2023. The company operates under the name "Baba Saj Co." and began offering franchises in February 2024. The franchisor has two affiliated companies: Alzoubi Inc., formed in 2015, which owns and licenses certain Baba Saj trademarks, and Cicero Saj Inc., also formed in Illinois, which owns and licenses the "Baba Saj: Beyond the Savor" mark and is a designated supplier of proprietary products.
Financial Overview
Investment Range
$351,500 - $555,500
Franchise Fee (Low)
$41,250
Franchise Fee (High)
$55,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$200,000
Equipment Costs (High)
$300,000
Working Capital
$28,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Baba Saj Restaurant Group LLC has a limited operating history, having been formed in September 2023. The franchisor's financial condition has been explicitly flagged as a special risk, with the FDD stating that it "calls into question the Franchisor's financial ability to provide services and support to you." As of October 31, 2023, the company reported total assets and member's equity of $9,418, with a net loss of $582 since inception. An unaudited balance sheet as of April 30, 2024, showed negative total assets and equity, amounting to -$12,988.50. Due to the franchisor's financial status, the Illinois Attorney General requires that initial franchise fees be deferred until Baba Saj Restaurant Group LLC has met its initial obligations and the franchisee has commenced doing business.
Financing Details
Baba Saj Restaurant Group LLC does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any notes, leases, or other financial obligations on behalf of its franchisees. Franchisees are responsible for securing their own funding through third-party lenders.
Performance Metrics
Total US Locations
2
Franchised Units
0
Corporate Units
2
Avg Square Footage
3,600
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Baba Saj Restaurant Group LLC has no litigation history to report, as indicated in Item 3 of its Franchise Disclosure Document. No litigation is required to be disclosed for the franchisor, its predecessors, parents, affiliates, or management personnel.
Bankruptcy History
Baba Saj Restaurant Group LLC has no bankruptcy history to report for itself or its management personnel, as indicated in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew the franchise agreement, Baba Saj Restaurant Group LLC franchisees must meet several conditions. They need to be in full compliance with their agreement, have no more than three instances of default during the current term, and provide written notice to the franchisor at least six months before the current term ends. Franchisees must also sign a new franchise agreement, pay a Successor Agreement Fee equal to 50% of the then-current initial franchise fee, continue to have the right to occupy their business premises (or have an approved new location), remodel their location to meet current brand standards, and comply with any current qualification and training requirements, including additional training. They must also execute a general release of claims against Baba Saj Restaurant Group LLC.
Training & Support Program
Franchisor Assistance
Baba Saj Restaurant Group LLC provides several forms of assistance to its franchisees. Before opening, the franchisor helps with site selection guidelines and approval, provides prototypical plans for design and signage, loans the Operations Manual, and gives a list of required equipment and supplies. They also offer initial training and standards for employee qualifications. After opening, Baba Saj Restaurant Group LLC may offer additional mandatory or optional training, including an annual business meeting or convention. On-site training and individualized assistance are available upon request or as deemed appropriate by the franchisor, though franchisees must cover associated costs. The franchisor also provides advertising materials, conducts inspections, and updates lists of approved suppliers. For the first franchise location, Baba Saj Restaurant Group LLC provides on-site opening assistance for up to 14 days. Additionally, the franchisor may recommend minimum and maximum prices for products and services.
Initial Training Hours
320
Training Location
Chicago, Illinois
Ongoing Support
After opening, Baba Saj Restaurant Group LLC provides ongoing support to its franchisees. This includes offering mandatory or optional additional training programs, which franchisees may be required to attend for up to 10 days per year, and an annual business meeting or convention for up to three days each year. On-site training and assistance can be provided upon request, with franchisees reimbursing the trainer's fees and travel expenses. Individualized assistance is also available via telephone, video conference, or email, subject to personnel availability. The franchisor will also provide advertising and promotional materials as they become available, conduct inspections of the franchised business, and provide updated lists of approved equipment and suppliers.
Franchise Requirements
Ideal Candidate Profile
Baba Saj seeks qualified individuals who are actively engaged in supervising their restaurant outlets. While not required for daily personal supervision, franchisees should have a strong commitment to overseeing their business. For those interested in developing multiple locations, Baba Saj looks for candidates who have demonstrated strong management skills in areas such as competent operation, organization, customer service, and record keeping. The general manager of each Baba Saj outlet must be dedicated full-time to the role, complete the initial training program, and have no competing business interests.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Baba Saj Restaurant Group LLC defines its franchise territories by a minimum area of approximately a five-mile radius around the business location. The territory is determined on an individual basis, considering factors such as minimum numbers of households, average home prices, and household incomes. The specific territory will be detailed and attached to the franchise agreement, or a non-exclusive site search area list will be provided if a location is not yet approved.
Staffing Notes
Baba Saj Restaurant Group LLC requires franchisees to employ qualified individuals who are trained in accordance with the franchisor's standards. This includes ensuring staff members conduct themselves courteously, protect confidential information, and maintain a neat appearance. All personnel who will have access to the franchisor's proprietary and confidential information must sign a Confidentiality/Non-Competition Agreement. Franchisees are also required to conduct background checks, including criminal history, for all prospective employees before hiring them. A general manager, who may be the franchisee, must be designated to directly supervise the franchised business, devote full-time efforts to the role, and successfully complete the franchisor's Initial Training Program.