Financial Requirements
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To qualify, Hummus Republic franchise candidates need to have a credit score of 680 or above and access to the required liquid capital of $150,000, meaning cash, including savings, or any assets that can be liquidated quickly.
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In order to secure financing, many lending institutions are also requiring that applicants have a minimum net worth of $350k.
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If you don’t meet those criteria on your own, it is perfectly fine to bring on a partner
A breakdown of costs and fees associated with investing in a Hummus Republic franchise.
Hummus Republic is poised to become a dominant brand in the Medittereanean restaurant industry. Founded in 2012 by President Nir Giat, whose first location in El Segundo, CA is still thriving today, Hummus Republic has won an enormous following by serving the perfect mix of fresh Mediterranean Food. With the demand for fresh, fast and delicious Mediterranean food skyrocketing, Hummus Republic is rapidly expanding across the United States and is actively seeking passionate entrepreneurs to capitalize on the growing demand for Hummus Republic in their communities.
Our low costs of entry are the result of a business model that is designed to help entrepreneurs thrive in business. Hummus Republic has a real-estate team dedicated to helping entrepreneurs secure prime locations, offers industry-leading support, and invests significantly in new technology to help franchisees keep ongoing costs low.
Mike Lozovsky
Director of Franchise Development with Hummus Republic
How much does it cost to start a franchise?
A more detailed look at costs and fees associated with opening a Hummus Republic Franchise.
| Type Of Expenditure | Range |
|---|---|
| Franchise Fee | $36,000 |
| Real Estate/ Rent | $3,000 - $15,000 |
| Utility Deposits | $500 - $1,500 |
| Leasehold Improvement | $80,000 - $300,000 |
| Architect Approval Fee | $0 - $5,000 |
| Contractor Approval Fee | $0 - $5,000 |
| Real Estate and Construction Fee | $5,000 |
| Initial Inventory | $5,000 - $7,000 |
| Opening Package | $3,500 - $5,000 |
| Stereo & Security System | $500 - $2,500 |
| Insurance - 3 Months | $350 - $750 |
| Training | $6,000 - $12,000 |
| Signage | $2,500 - $25,000 |
| Computer Equipment and Technology | $1,000 - $2,000 |
| Furniture, Fixtures & Equipment | $25,000 - $80,000 |
| Licenses, Plans & Permits | $10,000 - $20,000 |
| Dues & Subscriptions | $0 - $500 |
| Legal & Accounting/ Professional Fees | $2,000 - $5,000 |
| Grand Opening Advertising | $4,000 - $10,000 |
| Additional Funds (3 Months working capital) | $10,000 - $20,000 |
| Total | $196,850 - $557,250 |
The investment and expenditures required of actual franchisees may vary considerably from the projections included above. Depending on many factors, including geographical area, the amount of space leased, and the business capabilities of any particular management and service team.
Unless specified otherwise, you will incur the expenses described in the chart above in establishing the franchised restaurant, except for the real estate lease and utility deposits, which are imposed and collected by third parties. These may be refundable if permitted by the third party. No expenditure in the table above is refundable. The figures shown above are for existing buildings only, whereas the costs may vary substantially if you choose to construct a building for your franchised restaurant. However, you are not required to construct a building.
The franchise fee and its refund policy are described in greater detail in ITEM 5. We do not finance any fee.
The franchised business can be operated from a small commercial retail space suitable for food service operations. The franchised business location will require between 450 and 1,900 square feet. It is difficult to estimate lease acquisition costs because of the wide variation in these costs between various locations. The range is based upon the condition of the space you lease. For example, if the space was previously used for a restaurant, the costs will be lower; if the space is a “vanilla shell,” the costs will be higher. Some lessors may refund the security deposit if you cancel the lease before you occupy the premises, but the amounts you pay are typically non-refundable. The estimated range of costs in this category only includes your costs to enter into a lease agreement for the facility. Estimated rental costs for 3 months are included with the category “Additional Funds,” (see Note 16 below).
If you are a new customer of your local utilities, you will generally have to pay deposits to obtain services, including electric, telephone, high speed internet service, gas, trash and water. The amount of the deposit and whether the deposit is refundable will vary depending on the local utilities. You should contact your local utilities for more information.
You may need to make improvements to adapt your facility for operation of the franchised business. The cost of the leasehold improvements will vary depending on factors, including the size, condition and location of the facility, local wage rates and the cost of materials. The amounts you pay for leasehold improvements are typically non-refundable. You should inquire about the refund policy of the contractor at or before the time of hiring.
You will be required to invest in a basic initial inventory package containing your critical food inventory used in the initial months or weeks of operations of your business. Information on Inventory is included in the Confidential Operations Manual.
You must purchase the following types and amounts of insurance:
1. such insurance as necessary to provide coverage under the indemnity provisions set forth in the Franchise Agreement.
2. comprehensive general liability insurance with a minimum liability coverage of $1,000,000 per occurrence, or higher if your state law requires;
3. worker’s comp insurance in the amounts required by your local market or State.
Factors that may affect your cost of insurance include the size and location of the franchised business, value of the leasehold improvements, equipment, supplies, vehicle model and make, number of employees and other factors. The amounts you pay for insurance are typically non-refundable. You should inquire about the cancellation and refund policy of the insurance carrier or agent at or before the time of purchase.
The cost of initial training at our corporate location of up to three people is included in the franchise fee, but you are responsible for transportation and expenses for meals and lodging while attending training. The total cost will vary depending on the number of people attending, how far you travel and the type of accommodations you choose. These expenses are typically non-refundable. Before making airline ticket, hotel, rental car or other reservations, you should inquire about the refund policy in the event you need to cancel any reservation. We will provide up to 3 trainers for training at your location prior to opening at a daily rate of $350 per trainer plus all travel and reasonable living expenses.
This range includes the cost of signage used in the start-up of the franchised business. The amounts you pay for signage are typically non-refundable. Signage will depend primarily on the location from which the franchised business is operated. You should inquire about the return and refund policy of the suppliers at or before the time of purchase.
You must purchase the computer hardware and software that is specified in ITEM 11. You must have an automatic backup service for your computer equipment and software. You are required to use our operating systems as described in the Confidential Operations Manual. The amounts you pay for computer equipment and software are typically non refundable, or if refundable, you may be subject to a “re-stocking” fee. You should inquire about the return and refund policy of the supplier at or before the time of purchasing. Typically, the amounts you pay for an automatic backup service are non-refundable. You should inquire about the refund policy of the supplier at or before the time of purchasing.
You must purchase and/or lease and install furniture, fixtures and equipment necessary to operate your franchised business. The cost of the furniture, fixtures and equipment will vary according to local market conditions, the size of the facility, suppliers and other related factors. We do not know if the amounts you pay for furniture, fixtures or equipment are refundable. Factors determining whether furniture, fixtures and equipment are refundable typically include the condition of the items, level of use, length of time of possession and other variables. You should inquire about the return and refund policy of the suppliers at or before the time of purchasing or leasing.