Hummus Republic
Hummus Republic offers fast-casual Mediterranean cuisine focusing on hummus-based dishes in a convenient retail format. Known for its assembly-line service and affordable menu, it operates in the quick-service restaurant sector.
Hummus Republic franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment required to open a Hummus Republic franchise ranges from $207,500 to $659,000. This includes $51,500 to $74,000 that must be paid to the franchisor or affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee is $36,000 for a single-unit franchise agreement [p.8]. For a multi-unit development agreement (MUDA), the fee is reduced according to the terms specified in that agreement [p.53].
What are the ongoing royalty and advertising fees?
The weekly royalty fee is 6% of Gross Sales [p.53], and beginning in the seventh month of operation, Franchisee must spend at least 2% of Gross Sales each month on marketing, which can be paid to HR Franchising for them to manage advertising activities [p.65].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement and conditions for renewal are not specified in these excerpts. The information provided does not detail the length of the agreement or the terms for renewal, only mentioning that the agreement may not be renewable upon expiration or under certain conditions as specified in the agreement [p.150, p.165].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you generally cannot sell or transfer your franchise without the franchisor's permission, except for good cause. Good cause includes but is not limited to specific reasons determined by the franchisor [p.132(g)].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.139]. Additionally, if there is a failure of the franchisee to comply with any lawful provision of the franchise agreement and such failure is not cured within a reasonable time (which cannot exceed 30 days), this can be considered good cause for termination [p.132(c)].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not detail specific net worth or liquid capital requirements for franchisees to qualify. However, it does mention that the franchisor must maintain a surety bond due to inadequate capitalization, which can provide protection if obligations are not met. [p.146, p.129]
Do I get an exclusive or protected territory?
Based on the excerpts provided, you will not receive an exclusive territory. This is true whether your Hummus Republic business is located in a traditional site or a non-traditional site [p.29, p.51]. You may face competition from other franchisees, outlets owned by the company, or other competitive brands [p.29, p.33].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training guidelines [p.22] and an opening support program that includes up to 3 to 5 days of on-site assistance with a fee of $4,000 plus expenses [p.58]. Additionally, the franchisee's Principal Executive must complete a training program to the franchisor’s satisfaction before opening the business [p.28, p.58]. This training covers essential operational tasks such as preparing food items and managing staff schedules [p.28].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were 41 franchised Hummus Republic Restaurants. The FDD does not specify the number of closed or terminated outlets, only mentioning that 4 franchisee-operated restaurants closed and 3 transferred during the period considered for revenue data [p.38].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are purchasing one, but they do not make any representations about a franchisee's future financial performance or past performance of company-owned or franchised outlets. Any other financial performance information or projections should be reported to the franchisor’s management and relevant regulatory agencies as specified [p.38].
What am I restricted to selling, and where must I buy supplies?
You are required to purchase food products and supplies from the franchisor's required vendors [p.18]. There are no specific restrictions mentioned on what you can sell, but you may be prohibited from operating a similar business during the term of the franchise [p.3], and you must use designated online ordering platforms and apps for your operations [p.25].