Bottom line
- Total investment $96K – $474K including a $15K franchise fee, 50.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated AVOID with a risk score of 85/100.
- 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
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 Lukumades unit return on the cash you put in?
Unlevered ROIC · per unit
-73%
Negative
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 85 / 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
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.
FDD download
Lukumades · FDD (2025) PDF