How to Finance a Hummus Cafe Franchise: Fees and Startup Costs
By Marc Cornella
A Hummus Cafe franchise loan funds an early-stage Mediterranean restaurant brand from Oklahoma that is now offering franchises across the country. The franchisor, which operates as Hummus Mediterranean Cafe, lists a $34,900 initial franchise fee, a 5% royalty and an estimated total investment of $410,150 to $994,500 on its own franchise page.
This article covers the concept, the published costs and fees, how the brand’s SBA Franchise Directory listing and its two notes affect a loan, and what lenders review when they finance a newer restaurant franchise.
US Professional Funding is not affiliated with, sponsored by or endorsed by Hummus Cafe; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice, so review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant.
Hummus Cafe Franchise Loan at a Glance
According to the franchisor’s franchise page:
- Initial franchise fee: $34,900, with a 10% discount for the first five partners, the first franchise in a new state and honorably discharged veterans
- Royalty: 5% of weekly gross sales
- Brand advertising fee: none currently, though the franchisor reserves the right to charge up to 2% of monthly gross sales
- Local advertising: the greater of 3% of monthly gross revenue or $3,000 per month
- Estimated total investment: $410,150 to $994,500
- Area development: $90,000 for three units or $120,000 for five, paid in place of initial franchise fees
- Restaurant size: roughly 2,000 to 4,000 square feet
- Locations: the company’s site lists two Oklahoma restaurants, in Northwest Oklahoma City and Moore
- SBA Franchise Directory: listed as Hummus Cafe under code S8782, with two notes about real estate collateral and lien position
Minimum net worth and liquid capital are not published on the franchise page; ask for them during the discovery process.
What Is Hummus Cafe?
Hummus Mediterranean Cafe is a casual Mediterranean restaurant concept built on family recipes, with a menu that draws on Greek and Lebanese cooking. The company highlights homemade hummus, grilled meats seasoned with aromatic spices, tzatziki, freshly baked pita and falafel. Guests can dine in, order online or through the brand’s app, and book catering.
The brand’s restaurants are in the Oklahoma City area, where it operates corporate-affiliated locations. Its franchise page describes plans to expand nationally and notes the brand’s registered trademark and its slogan, “We Speak Fluent Flavor.”
Why lenders view it carefully. With a small number of operating restaurants, Hummus Cafe is an emerging franchise. Lenders lean more heavily on the borrower’s restaurant experience, liquidity and site than on a long system track record. Our article on financing an emerging franchise explains what changes when a brand is young.
Hummus Cafe Franchise Costs
The franchise page publishes the total range but not the Item 7 line items, so confirm each line in the FDD.
Initial franchise fee
The fee is $34,900. Early partners, the first franchisee in a new state and qualifying veterans can receive 10% off. The fee is generally due at signing.
Real estate, lease and build-out
The franchise page lists strip centers, open-air malls, free-standing buildings and out-parcel buildings of roughly 2,000 to 4,000 square feet. A second-generation restaurant space in a strip center typically sits near the low end of the range, while a free-standing or out-parcel building pushes costs up. See our article on financing a restaurant build-out.
Equipment
A Mediterranean kitchen needs grills, ovens, fryers for falafel, food processors for hummus, refrigeration, prep tables, a hood system, POS hardware and dining room furniture.
Opening costs and working capital
Pre-opening payroll, training, opening inventory, insurance, permits and grand-opening marketing all come before opening. The franchise page says opening typically takes 8 to 10 months after signing, so plan for rent and other costs during construction.
Item 7 lines to confirm
- Initial franchise fee
- Rent, deposits and real estate costs
- Leasehold improvements
- Kitchen equipment, furniture and fixtures
- Signage and technology
- Opening inventory and smallwares
- Training expenses, licenses, permits and insurance
- Grand-opening marketing
- Additional funds for the stated initial period
Make sure the lines add up to the total you are financing.
Ongoing Fees and How They Affect Your Loan
Royalty. The royalty is 5% of weekly gross sales, so it is paid frequently and comes off the top before any other expense.
Local advertising. Owners spend the greater of 3% of monthly gross revenue or $3,000 per month. In the early months, the $3,000 floor may be the higher figure.
Brand fund. No brand advertising fee is charged now, but the franchisor may charge up to 2% of monthly gross sales in the future. Projections should include it as a possibility.
How lenders factor fees in. Royalty, advertising, rent, food cost and labor all come out of sales before the loan payment. A Hummus Cafe franchise loan is sized on what remains, with a cushion in case a brand fund fee is added.
Franchisor Requirements for New Owners
The franchise page says absentee ownership is not allowed, although owners may hire a general manager. A partner may join if they own at least 50% of the business. Net worth and liquidity requirements are not published.
The franchise page lays out a six-step process: a franchise inquiry form, an email with franchise information and a brochure, an initial call or web meeting, an online franchise presentation, a Franchise Discovery Day of about seven hours, and signing the franchise agreement. Onsite training lasts up to 14 days.
Ways to Own a Hummus Cafe
A new single restaurant. Most owners will open a new location. See our overview of restaurant start-up financing.
Area development. The franchise page offers three-unit and five-unit area development agreements. Our article on area development agreement financing explains how lenders handle development fees and schedules.
A free-standing or out-parcel building. Owners who buy the property face different financing. Learn about restaurant real estate financing.
Financing Options for a Hummus Cafe Franchise
SBA 7(a) loans. With an SBA Franchise Directory listing, an SBA 7(a) loan can combine the franchise fee, build-out, equipment and working capital for qualified borrowers.
SBA 504 loans. For owners buying a free-standing or out-parcel building, an SBA 504 loan is designed for owner-occupied real estate and long-lived equipment.
Conventional term loans. Experienced restaurant operators with strong liquidity may use conventional financing, especially for later units.
Equipment financing. Grills, ovens, refrigeration and hood systems can be financed separately through restaurant equipment financing and leasing.
Working capital and lines of credit. The 8-to-10-month opening timeline, the $3,000 local advertising floor and early payroll all call for working capital. Explore restaurant working capital options.
Seller financing on resales. As the system grows, existing restaurants may come up for sale. Seller notes are typically subordinate to the senior lender, and loan programs may limit them.
SBA Loans for Hummus Cafe Franchisees
The SBA reviews franchise agreements and lists eligible brands on the SBA Franchise Directory. SBA lenders generally need a listing before making an SBA-guaranteed loan to a franchisee. A listing does not approve any borrower.
Hummus Cafe’s listing. The brand appears under code S8782 with two notes:
- Real estate collateral and lease documents. When the real estate where the restaurant is located secures the SBA-guaranteed loan, the Lease Addendum and Collateral Assignment of Lease may not be executed. In plain terms, if you own the property and pledge it as collateral, the franchisor’s lease-related documents should not be signed for that loan.
- Lien position. The lender or CDC must obtain the correct lien position on all collateral as required by SBA program rules. That means the SBA lender’s claim on pledged assets must rank where the rules require.
Neither note blocks SBA financing; both mainly affect how the lender documents the loan. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Use our SBA loan calculator for planning estimates, which are not an offer or approval.
How Lenders Evaluate a Hummus Cafe Deal
Personal credit and financial history. Expect a review of credit, tax returns, a personal financial statement and a personal guarantee.
Net worth and liquidity. Because the franchisor does not publish minimums, lenders set their own expectations for the equity injection and reserves.
Restaurant experience. With absentee ownership not allowed, lenders reviewing a Hummus Cafe franchise loan focus on the owner’s own operating skills or a capable general manager.
Business plan and projections. Model lunch and dinner traffic, catering, online orders, food cost, labor, the 5% royalty, the local advertising requirement and a possible brand fund fee.
The FDD and franchise agreement. Lenders review fees, term, transfer conditions and the Item 19 financial performance representation, which the franchise page says covers corporate-affiliated locations. See how lenders read a Franchise Disclosure Document.
Site and lease. The lease should cover the loan term and the space should fit the brand’s size range.
Real-World Scenarios
A first-state franchisee. An owner who brings the brand to a new state takes the fee discount and uses an SBA 7(a) loan for a strip center build-out.
A veteran owner. A veteran combines the 10% fee discount with an SBA loan and keeps working capital for the opening.
An area developer. An operator signs a three-unit agreement, finances the first restaurant and uses its results to support later loans.
A property buyer. An owner buys an out-parcel building with an SBA 504 loan, keeping in mind the directory’s note on lease documents.
Common Mistakes to Avoid
- Treating the low end of the investment range as a given
- Ignoring the $3,000 local advertising floor in early projections
- Leaving out a possible brand fund fee
- Underfunding the 8-to-10-month opening period
- Planning absentee ownership when the franchisor does not allow it
- Overlooking the SBA directory notes when real estate is collateral
For more, read common restaurant loan mistakes.
Next Steps to Finance Your Hummus Cafe Franchise
Step 1: Review the FDD. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 2: Confirm financial requirements. Ask the franchisor for net worth and liquidity requirements.
Step 3: Talk to a financing specialist. Learn how much you can borrow and what your equity injection will be.
Step 4: Find a site. Look for 2,000 to 4,000 square feet in a suitable center or building.
Step 5: Build your plan. Model sales, food cost, labor, rent, fees and debt service.
Step 6: Apply and close. Submit your loan package and coordinate the lease, construction and training.
Hummus Cafe Franchise Loan FAQs
How much does a Hummus Cafe franchise cost?
The franchise page estimates a total investment of $410,150 to $994,500.
What is the Hummus Cafe franchise fee?
The initial franchise fee is $34,900, with a 10% discount for early partners, the first franchise in a new state and qualifying veterans.
What royalty does Hummus Cafe charge?
The royalty is 5% of weekly gross sales. Owners also spend the greater of 3% of monthly gross revenue or $3,000 per month on local advertising.
Is there a marketing fund fee?
Not currently, but the franchisor reserves the right to charge up to 2% of monthly gross sales.
Can I get an SBA loan for a Hummus Cafe?
Yes, if you qualify. The brand is on the SBA Franchise Directory under code S8782 with two notes.
Can I own more than one restaurant?
Yes. Area development agreements cost $90,000 for three units or $120,000 for five.
Can I own a Hummus Cafe as an absentee owner?
No. Absentee ownership is not allowed, although you may hire a general manager.
Does Hummus Cafe offer financing?
No. The franchise page says the company does not offer direct financing but refers buyers to franchise funding companies. Check Item 10 of the FDD.
How long does it take to open?
The franchise page says opening typically takes 8 to 10 months after signing.
Does the FDD include financial performance information?
Yes. The franchise page says Item 19 includes a financial performance representation for corporate-affiliated locations.
Final Thoughts
A Hummus Cafe franchise loan finances a young brand with published fees, a clear investment range and an SBA listing. Owners who confirm the FDD details, plan for the long opening timeline and keep strong reserves give themselves the best chance at success.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
