Hummus Republic
Bottom line
- Total investment $208K – $659K including a $36K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $573K/year (median $596K).
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 137 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Hummus Republic unit return on the cash you put in?
Unlevered ROIC · per unit
19%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Hummus Republic units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$917K
on $4.6M purchase
Total debt
$3.7M
SBA $2.3M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 44 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
84 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Hummus Republic · FDD (2025) PDF