Hummus RepublicFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Hummus Republic franchise requires a total initial investment of $208K – $659K, including a $36K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $573K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 69 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $208K – $659K
- 11th pct Service Resta…
- Avg gross sales
- $573K
- 3rd pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 40
- 34th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 69 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 40 to 13 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $208K – $659K including a $36K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $573K/year (median $596K).
- Verdict A (Top Quintile) with a risk score of 48/100. SBA loan charge-off rate of 0.0% across 69 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Hummus Republic Franchising USA, Inc.
- CEO title
- Chief Executive Officer
- Gil Yossef Butbul
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 20855-10b Ventura Blvd., Woodland Hills, CA 91364
- Auditor
- Verdeja • Alvarez
- Audited financials
- Franchisor revenue
- $1.1M
- vs $1.5M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Franchisees operate fast-casual hummus and Mediterranean-focused restaurant concepts, managing daily food preparation, customer service, inventory, and staffing. Core activities include preparing fresh hummus, grain bowls, wraps, and salads while maintaining food safety standards and managing 8-15 employees per location.
- CEO
- Gil Yossef Butbul
- Headquarters
- CA
- Founded
- 2018
- FDD year
- 2025
- States available
- 15
FDD Item 7 · 2025 filing · 20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Feenot refundable | $36K | $36K | |
| Real Estate / Rent | $3K | $15K | |
| Utility Deposits | $500 | $2K | |
| Leasehold Improvements | $90K | $400K | |
| Architect Approval Fee | $0 | $5K | |
| Contractor Approval Fee | $0 | $5K | |
| Real Estate and Construction Fee | $5K | $5K | |
| Initial Inventory | $5K | $7K | |
| Opening Package | $4K | $5K | |
| Stereo & Security System | $500 | $3K | |
| Insurance - 3 months | $1K | $3K | |
| Training | $6K | $12K | |
| Signage | $5K | $25K | |
| Computer Equipment and Technology | $1K | $2K | |
| Furniture, Fixtures & Equipment | $25K | $80K | |
| Licenses, Plans & Permits | $10K | $20K | |
| Dues and Subscriptions | $0 | $500 | |
| Legal & Accounting/Professional Fees | $2K | $5K | |
| Grand Opening Advertising | $4K | $10K | |
| Additional Funds (3 months working capital) | $10K | $20K | |
| Total initial investment | $208K | $659K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$57K
10.0% margin
Unlevered ROIC
13%
EBITDA / total invested capital
Payback
7.8 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $208K – $659K
- Better than avg vs category
- Liquid capital req'd
- $10K – $20K
- Better than avg vs category
- Franchise fee
- $36K – $36K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $500 |
| Transfer fee | $18K |
| Renewal fee | $7K |
| Inventory (initial) | $5K – $7K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $573K
- Per unit, per year
- Median gross sales
- $596K
- Item 19 type
- Historical Actual Performance
- Sample size
- 18 units
- vs category median 13
- Range (low → high)
- $243K→$827K
- Cohort dispersion (min → max)
- Quartile band
- $332K→$790K
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Hummus Republic Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 40
- Opened
- 19
- Last reporting year
- Closed
- 4
- Terminated
- 4
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 10.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +60.0%
- Net unit change last year
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Transfers (3yr)
- 3
- Projected new
- 36
- Franchisor's next-year forecast
- Transfer rate
- 7.5%
- Owners selling to other franchisees
- Termination rate
- 10.0%
- Franchisor-initiated terminations
- Ceased ops
- 10.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 26 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 69
- Loan volume
- $17.4M
- Median loan
- $306K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Hummus Republic's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 8 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 7-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 69 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Rapid growth and undisclosed profitability metrics create moderate-to-cautionary risk; validate unit economics and franchisee retention before committing.
Litigation (Item 3)
No litigation required to be disclosed
Largest disclosed settlement: $720,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · Verdeja • Alvarez⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 48 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — unable to validate actual profitability against $207.5K-$659K investment range
- 02MINORWide investment spread (218% variance) suggests inconsistent unit economics or hidden costs not transparent upfront
- 03MINOR60% YoY unit growth is aggressive and may indicate unsustainable expansion; need to verify retention rates and franchisee satisfaction
- 04MINOR6% royalty on $573K avg revenue = $34.4K annually, but profitability unknown — may compress margins in lower-performing locations
- 05MINOROnly 40 units systemwide limits brand recognition and purchasing power; small system size increases operational support risk
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius/Population |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 2 mi |
| Territory population | 50,000 |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Woodland Hills, California |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 56 hrs
- Field support
- 32 hrs/yr
- On-site visits per year
- Time to open
- 6 mo
- From signing to launch
- POS system
- Otter
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Otter
Item 20 · call current owners
Franchisee Contacts
84 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hummus Republic · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hummus Republic franchise?
The total investment to open a Hummus Republic franchise ranges from $208K – $659K, with an initial franchise fee of $36K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hummus Republic franchise owners earn?
According to Item 19 of the Hummus Republic FDD, the average gross sales per unit is $573K. The median is $596K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Hummus Republic's franchise failure rate?
Based on SBA 7(a) loan data, Hummus Republic has a charge-off rate of 0.0% across 69 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Hummus Republic franchise locations are there?
As of their most recent FDD filing, Hummus Republic has 40 total units in the United States, including 40 franchised units and 0 company-owned units. 19 new units were opened in the latest reporting year.
Is Hummus Republic a good franchise to buy?
FranchiseVerdict rates Hummus Republic as a A-grade franchise with a risk score of 48 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.