OSMOW’S Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$471,250.5 - $629,470.5
Franchise Fee
$35,000
Total US Locations
2
Business Summary
OSMOW'S offers franchises in the United States for a quick service restaurant concept that also provides catering. These restaurants specialize in preparing and selling Mediterranean and Middle Eastern cuisine, along with other food and beverage items, all under the OSMOW'S brand name.
Corporate History
OSMOW'S FZ Corp., the franchisor, was incorporated in Delaware on March 11, 2021, and began offering OSMOW'S franchises in the United States in October 2022. The brand itself has a longer history through its Canadian affiliates. One Canadian affiliate, 1474031 Ontario Inc., opened its first corporate location operating under the OSMOW'S system in 2001. Another Canadian affiliate, Osmow's Inc., began offering OSMOW'S franchises in Canada in 2010, initially under the name "OSMOW'S GRILL" before rebranding all locations to "OSMOW'S" in 2011. Osmow's FZ Corp. currently does not own or operate any OSMOW'S retail outlets, but its domestic affiliate, Osmow's US Corp., has operated an OSMOW'S restaurant in Miami, Florida, since June 2022 and uses it for franchisee training.
Financial Overview
Investment Range
$471,250.5 - $629,470.5
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$35,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$350,000
Equipment Costs (High)
$420,000
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
OSMOW'S FZ Corp. has an accumulated deficit and a total stockholder's deficiency of $100,375 as of December 31, 2023. The company's financial statements have been prepared on a going concern basis, with management relying on its parent company, Osmow's Holdings Inc., to provide necessary funds. The parent company injected $114,955 into OSMOW'S FZ Corp. to meet financial needs through December 31, 2023, and an additional $50,000 on February 16, 2024, to cover working capital requirements until the business achieves profitable operations. Management is confident that the parent's commitment ensures the company's viability.
Financing Details
OSMOW'S FZ Corp. offers direct financing for leased space if it or its affiliate subleases the restaurant premises to the franchisee. This involves varying down payments and monthly payments, typically ranging from $4,000 to $9,000, with terms also varying. Upon default, franchisees are liable for all rent, interest, and costs, and OSMOW'S FZ Corp. reserves the right to repossess the premises and remove property without notice. Additionally, OSMOW'S FZ Corp. has arranged an equipment financing program for franchisees with Econolease Financial Services, a third-party lender, but does not receive any direct or indirect compensation for these referrals.
Performance Metrics
Total US Locations
2
Franchised Units
0
Corporate Units
2
Avg Square Footage
1,300
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
OSMOW'S has no litigation history that is required to be disclosed in this document. This indicates that OSMOW'S and its management have not been involved in any material legal or bankruptcy proceedings that would typically be reported.
Bankruptcy History
OSMOW'S has no bankruptcy information that is required to be disclosed in this document.
Agreement Terms
Renewal Conditions
To renew their franchise agreement, OSMOW'S franchisees must provide written notice of their intent to renew between 12 and 18 months before the initial term expires. They must complete all required remodeling, renovations, and refurbishments to meet current brand standards at their own expense at least two months prior to expiration. Franchisees must not be in default of any obligations under the Franchise Agreement or other agreements, and all monetary obligations must be paid. They are required to sign OSMOW'S FZ Corp.'s then-current franchise agreement, which may have different terms, including potentially higher fees. Additionally, franchisees must provide a general release of claims to OSMOW'S FZ Corp. and its affiliates (excluding claims that cannot be waived by law), maintain possession of the premises without being in default on the lease, and pay a renewal fee equal to 50% of the then-current initial franchise fee, plus reimbursement for all of OSMOW'S FZ Corp.'s related expenses.
Training & Support Program
Franchisor Assistance
Before a franchisee opens, OSMOW'S FZ Corp. helps with site location, lease negotiation (potentially subleasing the premises), and provides a list of approved suppliers for equipment, inventory, and other necessary items. It also provides guidelines for operating and managing the restaurant. Franchisees or their Designated Operator, along with one other full-time employee, must complete approximately 120 hours of initial training, which may be conducted in Miami, Florida, at the Canadian head office in Mississauga, Ontario, or virtually. This training includes classroom and on-the-job components. OSMOW'S FZ Corp. also loans franchisees a confidential Restaurant Training and Operations Manual and provides access to an online portal with operational resources. After opening, OSMOW'S FZ Corp. provides continuing support through updates to the operations manual, and may offer additional mandatory training programs and seminars. It gives general advisory assistance, including financial advice, and helps establish administrative, bookkeeping, accounting, and inventory control procedures. OSMOW'S FZ Corp. also coordinates and develops national, provincial, or local advertising and promotional programs, to which franchisees must contribute. Franchisees also receive assistance with grand opening advertising and marketing materials, and OSMOW'S FZ Corp. may advise on pricing strategies.
Initial Training Hours
122
Training Location
Initial training will take place either in Miami, Florida, or at another location specified by OSMOW'S FZ Corp. Classroom training may be held at their head office in Mississauga, Ontario, or conducted virtually. On-the-job training will occur at one or more franchised or corporate restaurants.
Ongoing Support
After a franchisee opens their business, OSMOW'S FZ Corp. provides ongoing advice and support. This includes providing updates and revisions to the Restaurant Training and Operations Manual, and potentially conducting additional mandatory training sessions and seminars for the Designated Operator and managers. OSMOW'S FZ Corp. also coordinates advertising and promotional programs, continues efforts to develop and improve the OSMOW'S system (including new products), and offers general financial advice and consultation to help resolve operating problems. They also establish and maintain administrative, bookkeeping, accounting, and inventory control procedures for franchisees.
Franchise Requirements
Ideal Candidate Profile
OSMOW'S FZ Corp. seeks franchisees who are willing to devote their full time, labor, skill, efforts, and attention to the honest, diligent, and faithful operation of the restaurant. They highly recommend that the franchisee directly participates in the day-to-day management and operation as the Designated Operator, permitting absentee ownership only in limited circumstances. Ideal candidates should demonstrate strong managerial and business standards, possess good moral character, a positive business reputation, a solid credit rating, and have the aptitude and financial resources to successfully operate the franchised business. Transferees, in particular, are evaluated on these criteria, with prior related business experience being a way to demonstrate aptitude.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Staffing Notes
OSMOW'S FZ Corp. requires initial training for two people: the Designated Operator, who is responsible for the general, day-to-day management of the restaurant, and one other full-time employee with various lower-level responsibilities. Franchisees are responsible for hiring and training any additional staff and must maintain a sufficient number of trained employees to serve customers, meeting minimum staffing levels specified by OSMOW'S FZ Corp. in the Manual or otherwise. The restaurant must always be under the direct on-premises supervision of either the franchisee or the Designated Operator. All permanent employees are required to sign non-competition and non-disclosure agreements.