Lukumades Franchise Cost, Revenue & Review 2026
- Investment
- $201K – $418K
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Lukumades is a dessert franchise serving Greek loukoumades, honey-drizzled fried dough puffs with toppings. Franchisees run the shops, managing production, staffing, and counter service.
FranchiseVerdict summary · 2026
A Lukumades franchise requires a total initial investment of $201K – $418K, including a $45K franchise fee. This fee is for a master or area-representative grant rather than a single unit, so it is not comparable with the single-unit fees shown for other brands. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: partial✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 3 headline figures on this page cite a page of the filing.
Overview
- Investment
- $201K – $418K
- 23rd pct Service Resta…
- Avg gross sales
- N/A
- 1 outlet
- Royalty
- Not extracted
- Units
- 1
- 3rd pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $201K – $418K including a $45K franchise fee. This fee is for a master or area-representative grant rather than a single unit, so it is not comparable with the single-unit fees shown for other brands.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict C (Average), verdict score 39/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Lukumades Franchise LLC
- Parent company
- E & A Project Group
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- Lukumades Global FZCO
- FDD Item 1, page 8 of the 2025 FDD
- CEO title
- Chief Executive Officer, Director, and Founder
- Exarchos Sourligkas
- CEO experience
- 2016 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- Meydan Grandstand, 6th Floor, Meydan Road, Nad Al Sheba, Dubai, UAE
- Auditor
- Muhammad Zubairy, CPA PC
- Audited financials
- Franchisor revenue
- $8K
- vs $59K prior year
Overview
About
- CEO
- Exarchos Sourligkas
- Headquarters
- DE
- Founded
- 2022
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 36% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
This fee is for a master or area-representative grant rather than a single unit, so it is not comparable with the single-unit fees shown for other brands.
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Note 1) | $45K | $45K | |
| Construction and Leasehold Improvements (Note 2) | $57K | $200K | |
| Lease Deposits – Three Months (Note 3) | $5K | $14K | |
| Equipment (Note 4) | $43K | $43K | |
| Signage (Note 5) | $2K | $4K | |
| Computer, Software and Point of Sale System (Note 6) | $2K | $3K | |
| Initial Marketing Package Fee (Note 7) | $5K | $5K | |
| Initial Inventory (Note 8) | $4K | $19K | |
| Utility Deposits (Note 9) | $715 | $4K | |
| Insurance Deposits – Three Months (Note 10) | $715 | $4K | |
| Travel for Initial Training (Note 11) | $0 | $3K | |
| Professional Fees (Note 12) | $7K | $14K | |
| Licenses and Permits (Note 13) | $4K | $11K | |
| Additional Funds – Three Months (Note 14) | $25K | $50K | |
| Total initial investment | $201K | $418K |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $201K – $418K
- Top 40% of category vs category
- Liquid capital req'd
- $25K – $50K
- Middle of category vs category
- Franchise fee
- $45K – $45K
- Master/area fee
- Royalty
- This is an Area Representative agreement; the AR pays no …
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $250 |
| Training fee | $250 |
| Transfer fee | $20K |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Lukumades makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Lukumades unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
vs Quick-Service Restaurants medians
How Lukumades Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 4
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Much Culture SDN BHD v. Lukumades Franchising Pty. Ltd., JA-22NCC58-12/2022, High Court of Malaya at Johor Bahru, Malaysia. Plaintiff alleges franchisor entered into a franchise agreement without being registered to sell franchises in Malaysia; seeking $120,000 USD in damages. Case is ongoing.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Muhammad Zubairy, CPA PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
The provided page set (p186-p190) contains only back-matter exhibits of the Lukumades Franchise LLC Area Representative FDD (dated May 2, 2025): a Washington State Amendment signature page, Exhibit I State Effective Dates, and Exhibit J Receipts. No audited financial statements (balance sheet, income statement) or Independent Auditor's Report are present in these images, so no financial figures could be extracted.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 39 / 100 verdict
- 01MINORZero existing franchise units with unknown growth trajectory — no proven system or franchisee success stories
- 02MINOR50% royalty rate is extraordinarily high (industry standard 5-7%) — unsustainable profit model for franchisees
- 03HIGHActive litigation in Malaysia alleging unregistered franchise operation — regulatory compliance and legal exposure concerns
- 04MINOR10-year term locks franchisees into high-royalty agreement with unproven brand and no exit strategy
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 7 |
| Mandatory arbitration | Yes |
| Arbitration location | Kent County, Delaware |
| Jury trial waiver | Yes |
| Governing law | DE |
| Litigation count | 1 |
View Item 3 litigation summary
Much Culture SDN BHD v. Lukumades Franchising Pty. Ltd., JA-22NCC58-12/2022, High Court of Malaya at Johor Bahru, Malaysia. Plaintiff alleges franchisor entered into a franchise agreement without being registered to sell franchises in Malaysia; seeking $120,000 USD in damages. Case is ongoing.
Items 10, 11
Training & Operations
- Classroom training
- 6 hrs
- On-the-job training
- 400 hrs
- Training location
- Area Representative Business and/or certified training Restaurant designated by franchisor; online training workshop
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisee selects with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Revel
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Lukumades franchise?
The total investment to open a Lukumades franchise ranges from $201K – $418K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD). This fee is for a master or area-representative grant rather than a single unit, so it is not comparable with the single-unit fees shown for other brands.
What do Lukumades franchise owners earn?
Lukumades makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Lukumades?
Lukumades is franchised by Lukumades Franchise LLC. Its parent company is E & A Project Group. The ultimate parent named in the FDD is Lukumades Global FZCO. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Lukumades FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Lukumades FDD and qualifies whose outlets they describe.
What is Lukumades's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Lukumades (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Lukumades franchise locations are there?
As of their most recent FDD filing, Lukumades has 1 total units in the United States, including 1 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Lukumades a good franchise to buy?
FranchiseVerdict rates Lukumades as a C-grade franchise with a verdict score of 39 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.