LukumadesFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Lukumades franchise requires a total initial investment of $96K – $474K, including a $75K franchise fee and an ongoing 0.5% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $96K – $474K
- 8th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 0.5%
- 1st pct Service Resta…
- Units
- 0
- 0th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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
Bottom line
- Total investment $96K – $474K including a $75K franchise fee, 0.5% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 57/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Lukumades Franchise LLC
- Parent company
- E & A Project Group
- Ultimate parent
- Lukumades Global FZCO
- 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
Lukumades franchisees operate Greek loukoumades (fried honey puffs) quick-service food locations, likely in high-traffic areas. Day-to-day operations involve food preparation, point-of-sale transactions, inventory management, and customer service, with all operational decisions and pricing subject to franchisor control given the 50% royalty structure.
- CEO
- Exarchos Sourligkas
- Founded
- 2022
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Area Representative Feenot refundable | $75K | $375K | |
| Leasehold Improvements | $3K | $25K | |
| Lease Deposits | $500 | $5K | |
| Furniture, Fixtures and Equipment | $500 | $5K | |
| Computer, Software and Point of Sale System | $250 | $3K | |
| Insurance Deposits - Three Months | $1K | $3K | |
| Travel for Initial Training | $0 | $5K | |
| Professional Fees | $5K | $15K | |
| Business Licenses and Permits | $500 | $1K | |
| Printing, Stationery, and Office Supplies | $1K | $3K | |
| Additional Funds - Three Months | $10K | $35K | |
| Total initial investment | $96K | $474K |
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
- $96K – $474K
- Better than avg vs category
- Liquid capital req'd
- $10K – $35K
- Better than avg vs category
- Franchise fee
- $75K – $375K
- Below avg, review vs category
- Royalty
- 0.5%
- Commission Received · typical 6–8%
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 0.5% of gross sales |
| Technology fee | $250 |
| Training fee | $250 |
| Transfer fee | $20K |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Lukumades Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Company-owned
- 0
- Corporate units in the system
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 1
- 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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Lukumades presents extreme risk: a non-going-concern franchisor with zero operating units, unsustainable 50% royalties, active international litigation, and no financial transparency — avoid unless franchisor provides audited financials and resolves regulatory issues.
Litigation (Item 3)
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 Franchise Agreement without proper registration in Malaysia. Plaintiff seeks $120,000 USD in damages. Franchisor disputes allegations and asserts proper registration. Case ongoing, no trial date set.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Muhammad Zubairy, CPA PC
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 57 / 100 rating
- 01HIGHGoing concern status is FALSE — franchisor may be operationally or financially unstable
- 02MINORZero existing franchise units with unknown growth trajectory — no proven system or franchisee success stories
- 03MINOR50% royalty rate is extraordinarily high (industry standard 5-7%) — unsustainable profit model for franchisees
- 04HIGHActive litigation in Malaysia alleging unregistered franchise operation — regulatory compliance and legal exposure concerns
- 05MEDNo disclosed average revenue or net income data — inability to validate ROI on $96,250–$474,000 investment range
- 06MINORFranchise fee ($15,000) is low relative to total investment, suggesting hidden or escalating costs
- 07MINOR10-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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Area Representative 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 |
| Mandatory arbitration | Yes |
| Arbitration location | Kent County, Delaware |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| 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 Franchise Agreement without proper registration in Malaysia. Plaintiff seeks $120,000 USD in damages. Franchisor disputes allegations and asserts proper registration. Case ongoing, no trial date set.
Items 10, 11
Training & Operations
- Classroom training
- 6 hrs
- On-the-job training
- 400 hrs
- Training location
- at your Area Representative Business, or at a certified training Restaurant that we designate
- 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 $96K – $474K, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Lukumades franchise owners earn?
Lukumades does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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.
Is Lukumades a good franchise to buy?
FranchiseVerdict rates Lukumades as a B-grade franchise with a risk score of 57 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.
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.