Hummus Republic Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$207,500 - $659,000
Franchise Fee
$20,000
Min Cash Required
$10,000
Total US Locations
40
Business Summary
Hummus Republic operates a fast-casual restaurant business that serves assembly-line Mediterranean cuisine. The brand focuses on offering customers a quick, affordable, and consistent product in a convenient retail location, specializing in healthy menu items that heavily feature hummus.
Corporate History
Hummus Republic Franchising USA, Inc. was incorporated in Delaware on February 22, 2018. The company began offering Hummus Republic franchises in March 2018. As of December 31, 2024, the brand had 41 franchised Hummus Republic Restaurants.
Financial Overview
Investment Range
$207,500 - $659,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$36,000
Minimum Cash Required
$10,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$115,000
Equipment Costs (High)
$480,000
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Hummus Republic Franchising USA, Inc. currently has a Members' Deficit of approximately $2,560,000 as of December 31, 2024, and reported a net loss of approximately $527,000 for the year. This financial condition raises questions about Hummus Republic's ability to continue operations. However, management expects this deficit to turn into a surplus as deferred revenues from existing franchise contracts are recognized and as 50 signed franchisees open, contributing an additional $2,400,000 in annual royalties. Additionally, 27 locations opened in the past 12 months are expected to reach their full revenue capacity, which management believes will improve the company's financial standing.
Financing Details
Hummus Republic Franchising USA, Inc. does not offer any direct or indirect financing options to its franchisees. Additionally, Hummus Republic does not guarantee any notes, leases, or other financial obligations for franchisees. Franchisees are responsible for securing their own financing.
Performance Metrics
Total US Locations
40
Franchised Units
40
Corporate Units
0
Avg Square Footage
1,525
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Hummus Republic Franchising USA, Inc. has no litigation that is required to be disclosed in Item 3 of this FDD. This means that Hummus Republic has not been involved in any material litigation in the past three years that would need to be reported to prospective franchisees.
Bankruptcy History
Hummus Republic Franchising USA, Inc. has no bankruptcy history to disclose in Item 4 of this FDD. This means that neither the franchisor nor its key personnel have been involved in any bankruptcy proceedings that require disclosure.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Hummus Republic franchisees must provide advance notice between 90 and 180 days before their current term ends. They must be in full compliance with all aspects of their agreement and any other agreements with Hummus Republic. Franchisees are required to renovate their business to meet the then-current brand standards, sign Hummus Republic's current standard franchise agreement (which may have different terms), and execute a general release of claims. A renewal fee of $5,000 is also required for each additional 5-year renewal term.
Training & Support Program
Franchisor Assistance
Hummus Republic provides extensive assistance to its franchisees both before and after their business opens. Pre-opening support includes reviewing potential locations, providing standard building plans and specifications, offering suggested staffing and hiring guidelines, conducting an initial training program, reviewing business plans and financial projections upon request, and assisting with market introduction planning. Hummus Republic also provides 3 to 5 days of on-site opening support with up to two representatives. After opening, franchisees receive ongoing advice via telephone or electronic communication for business improvement and problem resolution, pricing guidelines for products and services, recommended administrative and accounting procedures, management of the Brand Development Fund, and maintenance of the brand's website which includes franchisee information.
Initial Training Hours
64
Training Location
Corporate office in Woodland Hills, CA, an existing franchisee location in Ventura, CA, and at the franchisee's location
Ongoing Support
After opening, Hummus Republic provides ongoing advice to franchisees via telephone or electronic communication for improving and developing their business and resolving operational issues. Hummus Republic offers pricing guidelines for products and services and recommended administrative, bookkeeping, accounting, and inventory control procedures. The franchisor also manages the Brand Development Fund and maintains the Hummus Republic brand website, which includes information about the franchisee's business. In-person support requested by a franchisee may incur a fee of $4,000 plus out-of-pocket expenses.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Staff Count
8
Territory Size Requirements
Hummus Republic defines its typical territory for a single franchise as either a 50,000-population center or a 2-mile radius from the location, whichever is smaller. Territories are mapped based on market research and the latest census data, considering factors like population, median age, median household income, competition, and the buyer's capabilities. Each territory is defined by zip code.
Staffing Notes
Hummus Republic provides its franchisees with suggested staffing levels and hiring guidelines. For new locations, approximately 7-8 staff members are typically needed. Franchisees are responsible for all hiring decisions and conditions of employment for their personnel. The operating manual includes operational instructions that can be used for training new employees.