Mediterranean Marvels: Franchise Chains in the US

Mediterranean Marvels: Franchise Chains in the US

With its irresistible blend of vibrant flavors and healthy options that take customers on a gastronomic voyage, Mediterranean cuisine is winning hearts across the nation!

Apart from its diverse range of taste, Mediterranean cuisine taps into the growing market of health-conscious consumers seeking flavorful yet nutritious options.

This blog will introduce you to the top Mediterranean franchises in the US.

If you are seriously considering having your own Mediterranean franchise, we would love to help guide you in the process of obtaining one. Just let us learn a little more about your needs during a free 15-minute consultation.  

We have no affiliation with any of the brands mentioned in this post. 

TAZIKI’S MEDITERRANEAN CAFE

Known for its mouthwatering gyros, refreshing salads, and creamy hummus, Taziki’s Mediterranean Cafe (“Taziki’s”) offers a healthy and delicious dining experience for customers of all ages. This is why it comes at no surprise that this chain which was founded in 1998 has now multiple outlets in different states in the US.

According to the 2022 Franchise Disclosure Document (“FDD”) of Taziki’s Franchising LLC, Taziki’s has 59 franchised outlets which are scattered across the US. These franchises are found in the following states:Alabama, Arkansas, Colorado, Florida, Georgia, Idaho, Indiana, Kentucky, Louisiana, Misssissipi, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, and Virginia.

Franchising a Taziki’s Mediterranean Cafe

According to its most recent FDD, the total investment necessary to begin operating a Taziki’s Mediterranean Cafe franchise ranges from $555,000 to $1,008,000. 

This figure already includes the $35,000 initial fee which is to be paid upon the signing of a franchise agreement. Apart from the initial fee, also included, among others, are Leasehold improvements, furnitures, fixtures, and kitchen equipment, décor, and signage. These and more are found in Item 7 of the FDD.

Operating Fees Due to Franchisor

Running any business naturally comes with ongoing expenses. In a franchise set-up, a franchisee needs to pay regular royalty fees to the franchisor. For Taziki’s, this royalty fee is 4% of the net cash sales which is to be paid within 10 days after the end of a reporting period.

Taziki’s also charges a marketing and promotion fee which may be up to 1% of net cash sales. These and other fees are outlined in Item 6 of the FDD.

“”Net Cash Sales” is computed as follows:

Net Cash Sales = Total Sales – (Sales Made on Credit + Returns and Allowances + Discounts Allowed)

Participation in Actual Franchise Operation

According to Item 15 of the Taziki’s FDD, at least one person who has a significant equity ownership position in the franchisee must be designated the Owner-Operator of the franchisee.

The Owner-Operation is expected to dedicate his or her full working time and attention to the franchised business. However, another option for a franchisee is to hire an “on-premises” manager who will handle the day-to-day operations of the franchised business.

HUMMUS REPUBLIC

Its name spelling out its signature dish, Hummus Republic which was founded in 2013 offers a range of Mediterranean-inspired dishes such as falafel, wraps, salads, and bowls. To date, it has several outlets in the United States.

According to the 2021 Franchise Disclosure Document (“FDD”) of Hummus Republic Franchising USA, Inc., Hummus Republic has 10 franchised outlets in the US found in California, Massachusetts, and New Jersey.

Franchising your own Hummus Republic

According to its most recent FDD, the total investment necessary to begin operating your own Hummus Republic franchise ranges from $135,350 to $487,250.

This figure already includes the $36,000 initial fee which is to be paid upon the signing of a franchise agreement. Apart from the initial fee, also included, among others, are real estate/rent, utility deposits, leasehold improvements, design fee, initial inventory, and opening package.. These and more are found in Item 7 of the FDD.

Multi-Unit Development Agreement

Hummus Republic also offers a multi-development agreement which is an agreement that allows a franchisee to open and operate multiple units or locations of the franchised business within a specified territory or timeframe. The total investment necessary for operating a three-to-five unit Multi-Development Agreement with Hummus Republic is $379,050 to $1,434,750.

Operating Fees Due to Franchisor

Running any business naturally comes with ongoing expenses. In a franchise set-up, a franchisee needs to pay regular royalty fees to the franchisor. For Hummus Republic, this royalty fee is 6% of the gross revenue which is to be paid weekly on Fridays via electronic banking.

Hummus Republic also charges for local marketing which is $2,000 per month during the first six (6) months of operations. Beginning the seventh month of operation, the local marketing will be 2% of gross revenue.

Participation in Actual Franchise Operation

According to Item 15 of Hummus Republic’s FDD, while a franchisee is not required to participate personally in the direct operation of the business, it is recommended that the franchisee participates.

Item 15 also states that  the franchisee must designate a “Principal Executive” who will be primarily responsible for the business and who will have decision-making authority on behalf of the business. Additionally,  the Principal Executive must own at least 10% of the business.

GARBANZO MEDITERRANEAN FRESH

Tracing its early beginnings in Colorado back in 2007, Garbanzo Mediterranean Fresh has made its name as a leading build-your-own mediterranean restaurant, allowing its customers to decide what they want on their pita, wrap, gyro, salad or rice bowl.

According to the 2023 Franchise Disclosure Document (“FDD”) of Garbanzo Franchising Co., LLC, Garbanzo Mediterranean Fresh has 17 franchised outlets in the US found in California, Colorado, Georgia, Indiana, Iowa, Massachusetts, Michigan, Missouri, Minnesota, New York, Philadelphia, Utah, and Virginia.

Franchising your own Garbanzo Mediterranean Fresh

According to its most recent FDD, the total investment necessary to begin operating your own Garbazo Meditteranean Fresh restaurant ranges from $552,057 to $734,957.

This figure already includes the $35,000 to $36,000 initial fee which is to be paid upon the signing of a franchise agreement. Apart from the initial fee, also included in the  estimated initial cost are architectural plan review, architect fees, permits and license fee, leasehold improvements, equipment, and other items found in Item 7 of Garbanzo Mediterranean Fresh’s FDD.

Operating Fees Due to Franchisor

Running any business naturally comes with ongoing expenses. In a franchise set-up, a franchisee needs to pay regular royalty fees to the franchisor. For Garbanzo Mediterranean Fresh, this royalty fee is 6% of the net sales which is to be paid every Wednesday of each week. 

Garbanzo Mediterranean Fresh also has a Brand Development Fund Advertising Fee which is 3% of net sales, and a Local Advertising and Promotion Fee which is 2% of net sales. 

Brand Development Fund vs. Local Advertising Fund

“Brand Development Fund” is established to have a system-wide marketing and advertising efforts which will benefit all of the franchisees of Garbanzo Mediterranean Fresh whereas “Local Advertising Fund” is focused on marketing and advertising efforts within the specific territory of a franchisee.

Participation in Actual Franchise Operation

According to Item 15 of the Garbanzo Mediterranean Fresh’s FDD, the franchisee must devote his or her best efforts to the management and operation of the business. However, the franchisee may delegate the operation of the day-to-day supervision of the restaurants to a manager, provided that if a franchisee operates more than one Garbanzo Mediterranean Fresh restaurant, there must be a properly trained manager at each location.

GREAT GREEK MEDITERRANEAN GRILL

Its first location opened on May 5, 2011 in Nevada, and since then, Great Greek Mediterranean Grill has become a thriving brand known to bring the vibrant flavors of the Mediterranean to life. With a menu that features a diverse selection of options, Great Greek Mediterranean Grill has gained a strong brand recognition across the state.

According to the 2023 Franchise Disclosure Document (“FDD”) of Great Greek Franchising, LLC, Great Greek Mediterranean Grill has 24 franchised outlets in the US, 9 of which opened in 2023 alone. These 24 franchised outlets are found in California, Colorado, Florida, Indiana, Michigan, Minnesota, New Jersey, Ohio, South Carolina, Texas and Virginia.

Franchising your own Great Greek Mediterranean Grill

According to its most recent FDD, the total investment necessary to begin operating your own Great Greek Mediterranean Grill franchise ranges from $582,014 to $1,088,560.

This figure already includes the $271,415 to $301,560 initial fee which is to be paid upon the signing of a franchise agreement. Apart from the initial fee, covered in this amount are also real estate lease deposits, real estate service charges, design and project management fees, leasehold improvements, a restaurant package, opening inventory and other items so enumerated in Item 7 of Great Greek Mediterranean Grill’s FDD.

Operating Fees Due to Franchisor

Running any business naturally comes with ongoing expenses. In a franchise set-up, a franchisee needs to pay regular royalty fees to the franchisor. For Great Greek Mediterranean Grill, this royalty fee is 6% of gross revenues which is to be paid weekly on the Tuesday of the following week.

As Great Greek Mediterranean Grill mentions in Item 6 of its FDD, “Gross revenues” include all revenue from the franchise location, but do not include documented refunds or sales tax.

Great Greek Mediterranean Grill also charges a Marketing/Brand Fund Contribution Fee which is 3% of gross revenues, payable to the franchisor. Further, Great Greek Mediterranean Grill also charges a Local Marketing Fee which is 1% of gross revenues payable to the vendors.

Participation in Actual Franchise Operation

According to Item 15 of the Great Greek Mediterranean Grill’s FDD, the franchisee must personally devote full-time and best efforts to the direct operation of the business, including attending all meetings, periodic training, and the franchise’s annual conference.

At all times, the franchised business must be under the direct-on-location supervision of the franchisee or someone who has been trained by  the franchisee. The latter person is not required to have any ownership or equity interest in the franchise.

STICKS KEBOB SHOP

Founded in Virginia in year 2001, Sticks Kebob Shop is well-known for its sticks which comes in 8 different varieties namely beef, chicken, falafel, kibbeh (spiced lamb sausage), lamb, mixed vegetables, pork, and shrimp. Having been in existence for more than two decades now, Sticks Kebob Shop has created its name in the fast-casual dining market.

According to the 2023 Franchise Disclosure Document (“FDD”) of Sticks Franchising, LLC, Sticks Kebob Shop currently does not have any franchised outlets, but it has 3 company-owned outlets which are all found in Virginia.

Franchising your own Hummus Republic

According to its most recent FDD, the total investment necessary to begin operating your own Sticks Kebob Shop franchise ranges from $247,600 to $573,300.

This figure already includes the $70,250 initial fee which is to be paid upon the signing of a franchise agreement. Apart from the initial fee, covered also in the initial investment cost is the real estate/rent and deposit, leasehold improvements, buildout management, equipment and small wares, and other expenditures as outlined in Item 7 of Sticks Kebob Shop’s FDD.

“Buildout Management Fee”

A striking expenditure in Item 7 would be the buildout management fee wherein the franchisee must use a supplier that is designated by Sticks Kebob Shop or has been approved in writing by Sticks Kebob Shop to act as the construction management first to assist the franchisee in managing the restaurant’s buildout..

Operating Fees Due to Franchisor

Running any business naturally comes with ongoing expenses. In a franchise set-up, a franchisee needs to pay regular royalty fees to the franchisor. For Hummus Republic, this royalty fee is 3% of gross sales during the first six months of operations, and beginning the 7th month of operations, it will be 6% of gross sales or $500 per week, whichever is higher. This royalty fee is to be paid weekly every Wednesday via electronic funds transfer.

Sticks Kebob Shop also charges for Advertising and Marketing Fund Contribution which may be up to 4% of the gross sales, but as per its 2023 FDD, Sticks Kebob Shop charges it at 1.5% of gross sales. Sticks Kebob Shop may also charge for Local Advertising, Marketing and Promotion Expenditure which is 1% of gross revenues. 

Participation in Actual Franchise Operation

According to Item 15 of the Sticks Kebob Shop’s FDD, when the franchised restaurant is open for business, it must be under the personal, on-premises supervision of either the franchisee, the Controlling Person (for business entities), Key Manager, or trained attendant.

The Controlling Person who must have at least 10% ownership in the franchise, and shall actively, personally, and frequently monitor and supervise the performance and operation of each restaurant. Apart from the franchisee, either the Controlling Person or Key Manager appointed by the franchisee is responsible to manage the day-to-day business of the restaurant. Unlike the Controlling Person, a Key Manager is not required to have an ownership of the franchise.

Meet The Author:

Christine Bontuyan is a lawyer in the Philippines and she is based in Cebu City. She earned her Juris Doctor degree in 2020. Apart from handling civil and criminal cases in the Philippines, Christine serves as a paralegal for reputable US law firms. She previously served as an elected public official in the Philippines as a Sangguniang Kabataan Chairperson from 2018 to 2023.

The information contained in this post was compiled from publicly available documents, and its accuracy may differ over time due to future changes, Franchises in the United States are sold through the FDD. If you are interested in a franchise and you meet the franchisor’s criteria, you will be furnished with a copy of the FDD used to offer franchises in your state. This document will contain multiple disclosures and a copy of the franchise agreement. It is important to work with a franchise attorney to evaluate a franchise opportunity.

Waldrop & Colvin is a franchise law firm and they help business owners (franchisors) and entrepreneurs (franchisees) evaluate franchise opportunities so they can make informed decisions. You can learn more about franchising and franchise law by exploring their site (Overview of federal franchise law and State-by-State franchise requirements).

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