17 frequently asked questions answered with data from the 2024 Franchise Disclosure Document.
The total initial investment to open a Hommati franchise ranges from $69K to $80K (2024 FDD). This includes the franchise fee, equipment, build-out, inventory, and working capital needed before opening.
View full investment analysisThe initial franchise fee for Hommati is $45K (2024 FDD). This one-time fee is paid to the franchisor when signing the franchise agreement and covers the right to use the brand, systems, and initial training.
View full investment analysisData sourced from the Hommati 2024 Franchise Disclosure Document (FDD). Always review the most current FDD and consult with a franchise attorney before making investment decisions.
Hommati requires prospective franchisees to have $45K in liquid capital (2024 FDD). A personal guarantee is also required.
View full investment analysisNo, Hommati does not require franchisees to have dedicated real estate (2024 FDD). This can significantly reduce startup costs and ongoing overhead.
View full investment analysisHommati charges a royalty fee of 8.0% of gross sales (2024 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.
View full fees analysisThe total ongoing fee rate for a Hommati franchise is approximately 12.0% of gross sales (2024 FDD). This includes the royalty fee, a 4.0% marketing/advertising fund contribution, a $195/month technology fee, and other recurring charges.
View full fees analysisHommati has been involved in 0 litigation cases over the past 3 years (2024 FDD). There are no class action lawsuits pending.
View full litigation analysisNo, the Hommati franchisor has no bankruptcy filings in their disclosure history (2024 FDD).
View full litigation analysisHommati offers protected territory rights to its franchisees (2024 FDD). The franchise agreement does not include encroachment protection. Online sales rights are shared between the franchisor and franchisee.
View full territory analysisHommati currently operates 133 locations (2024 FDD) (124 franchised, 9 company-owned). The system contracted by 2.2% over the past year. The 3-year compound annual growth rate is -1.7%.
View full growth analysisThe 1-year franchisee turnover rate for Hommati is 15.0% (2024 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.
View full growth analysisAccording to the Hommati FDD Item 19 financial performance representation (2024 FDD), the median gross sales per unit is $96K (average: $131K).
View full financials analysisThe initial franchise agreement term for Hommati is 10 years (2024 FDD). Franchisees can renew 2 times for 10-year periods. The total potential term is 30 years.
View full contract analysisHommati's post-termination non-compete clause restricts former franchisees from operating a competing business for 1 year within 25 miles of the former location (2024 FDD).
View full legal analysisYes, Hommati's franchise agreement requires mandatory arbitration for dispute resolution (2024 FDD). The agreement includes a jury trial waiver.
View full legal analysisHommati provides 39 hours of initial training over approximately 1 weeks (2024 FDD). The cost of training is covered by the franchisor (travel and lodging are typically the franchisee's responsibility). Ongoing field support is provided on a as-needed basis.
View full support analysisHommati does not provide site selection assistance (2024 FDD). Franchisees are responsible for finding and securing their own location. The franchisor also provides technology support and systems.
View full support analysis