Garbanzo Mediterranean Fresh Franchise Costs, Fees & Owner Salary (2023)

Garbanzo Mediterranean Fresh is a vibrant and growing franchise in the fast-casual restaurant sector, specializing in authentic Mediterranean cuisine. The brand was officially formed in November 2020, with its roots extending deeper into the food industry's history, emphasizing fresh, nutritious, and flavorful dishes. The franchise operations are managed from their principal office in St. Petersburg, Florida, marking a new chapter in the brand's development and expansion strategy.

The franchise began offering opportunities to potential franchisees in 2021, inviting entrepreneurs to join their journey in spreading the rich flavors of Mediterranean food across various locations. Garbanzo Mediterranean Fresh prides itself on a diverse menu that includes popular Mediterranean dishes such as hummus, falafel, shawarmas, salads, and more, all served with a contemporary twist while maintaining traditional authenticity.

With a focus on high-quality ingredients and a commitment to an exceptional dining experience, Garbanzo Mediterranean Fresh stands out in the fast-casual dining space. The franchise is keen on expanding its footprint and is looking for partners who share their enthusiasm for Mediterranean cuisine and a healthy dining culture​.

Initial Franchise Fee

The initial franchise fee is $35,000, payable in full upon signing the franchise agreement. This fee is non-refundable and fully earned upon payment.

Royalty Fee

Franchisees must pay a weekly royalty fee equal to 6% of Net Sales. "Net Sales" include all revenue generated from all business conducted at or from the franchised outlet.

Technology Bundle Fee

Franchisees are required to pay a monthly technology bundle fee ranging from $175 to $1,200 for services including POS System, Managed Internet Hardware, Online Ordering, Loyalty Program, Music System, Profit and Loss software, and Intranet and Portal services.

Advertising Fee

Franchisees must contribute to a Brand Development Fund, currently at 3% of Net Sales, paid weekly in the same manner as royalty fees.

Transfer Fee

For transferring the franchise to an existing franchisee, the fee is 50% of the then-current initial franchise fee; for transferring to a new owner, the fee is 75% of the then-current initial franchise fee. The fee for transferring ownership among existing partners only is $2,000.

Renewal Fee

The renewal fee for franchise agreements is $15,000.

The franchisor provides comprehensive training for franchisees, including an initial training program and potentially refresher courses. 

Initial Training

The initial training is designed for up to three individuals, which can include the franchisee, the franchisee's manager, and the assistant manager. If the franchisee is an entity, such as a partnership, corporation, or limited liability company, at least one of the trainees must be a key figure within the entity, like a general partner or principal shareholder.

The initial training program spans approximately four weeks, focusing on practical experience. Key areas covered include financial controls, bookkeeping procedures, food preparation, service and operational techniques, marketing and advertising strategies, sanitation and maintenance procedures, and maintaining quality standards. This training takes place at a site designated by the franchisor, and all related expenses, including travel, lodging, and meals for the trainees, are the responsibility of the franchisee.

Training Materials

Franchisees are required to ensure that their personnel are trained using only the materials provided by the franchisor. These materials remain the property of the franchisor, and franchisees are prohibited from making unauthorized use of them. The franchisor may also offer refresher training programs or seminars from time to time, which franchisees, their managers, and/or management personnel may be required to attend at their own expense.

Failure to Complete Training

Should the franchisee or their management personnel fail to complete the initial training program to the franchisor's satisfaction, they may be required to repeat the course or send a replacement to the next available training session. The franchisor sets the fee for this training, as published in the operations manuals or designated in writing.

The franchisor assigns a designated territory to the franchisee, within which the franchisee has certain protections. However, these territorial rights are not exclusive, meaning the franchisor retains the right to operate and license others to use the system and proprietary marks within the franchisee's territory under specific conditions.

For instance, the franchisor can establish or license other restaurants in captive locations like enclosed shopping centers, amusement parks, sports stadiums, and airports within the franchisee's territory.

The scope and size of the territory are determined at the franchisor's discretion, based on factors like location, traffic patterns, site size, demographics, and market demands. This means the territory might vary significantly in size and scope from one franchisee to another, potentially being limited to just the accepted location of the franchisee's restaurant.

The franchise document suggests that passive investment in the franchise may not be explicitly allowed or encouraged. The focus on the active participation of franchisees, particularly in terms of operational management and compliance with franchisor standards, implies an expectation of direct involvement by franchise owners.

The conditions set forth for transferring franchise rights, which include meeting all financial obligations, curing defaults, and ensuring new owners or transferees meet the franchisor's qualifications, further emphasize the importance of engaged and compliant franchise operators.

Additionally, the requirement for franchisees to actively manage or oversee the management of their franchises, as indicated by provisions related to ownership changes and operational responsibilities, supports the notion that the franchisor values hands-on involvement.