Ori'Zaba's Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Food & Beverage
• Initial Investment: $506,700 to $890,200
• Franchise Fee: $30,000
• Royalty: 5% of gross sales for the first three months; then the greater of $4,000 per month or 5% of gross sales
• Marketing / Ad Fee: 2% brand fund contribution
• Key additional recurring fees: 3% local marketing requirement if not otherwise spent locally; $200/month technology fee; learning management system fee currently $170/month plus 3% administrative fee for up to 15 users
• Number of locations: 4 total at year-end 2024 (3 franchised, 1 affiliate/company-owned)
• Best Fit: Manager-led owner with active oversight rather than passive ownership

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The estimated initial investment ranges from $506,700 to $890,200, which places this in a high-cost startup range. The initial franchise fee is listed at $30,000.

The main cost implication is not just the franchise fee but the overall restaurant buildout and opening requirement implied by the total investment range. The disclosure also lists additional funds of $41,900 to $67,900, which suggests a meaningful working-capital cushion is expected during launch.

For a prospective operator, the capital requirement is the main barrier to entry here. This is not a low-cost or home-based concept.

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• Royalty: 5% of gross sales for the first three months; then the greater of $4,000 per month or 5% of gross sales
• Brand fund / ad fee: 2% of gross sales
• Local marketing requirement: currently 3% of gross sales if the required amount is not spent on approved local marketing
• Technology fee: currently $200 per month
• Learning management system fee: currently $170 per month plus 3% administrative fee for up to 15 users; about $10 per month for each additional user
• Other possible fees: training fees, convention fee, mystery shopper fee, supplier evaluation fee, custom marketing/menu fees, late fees, insurance reimbursement, and deficiency correction charges

Overall, the recurring fee load is not driven by a high royalty percentage alone, but the structure includes several layered obligations. The royalty floor of $4,000 per month matters in lower-sales periods, and required marketing and technology-related charges add to fixed operating overhead.

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Yes, the FDD includes Item 19 financial performance data.

Franchised outlets only (3 outlets, 2024)

• Average gross sales: $1,534,380.31
• Median gross sales: $1,241,852.60
• Gross sales range: $1,238,522.44 to $2,122,765.90
• Average gross profit: $828,022.40
• Median gross profit: $725,765.93
• Gross profit range: $719,580.38 to $1,038,720.90
• Average gross profit margin: 53.96%
• Median gross profit margin: 57.94%
• Gross profit margin range: 48.93% to 58.60%

Affiliate outlet (1 outlet, 2024)

• Gross sales: $1,808,970.95
• Gross profit: $907,951.14
• Gross profit margin: 50.19%

Combined reporting group (4 outlets total)

• Average gross sales: $1,603,027.97
• Median gross sales: $1,525,412
• Gross sales range: $1,238,522.44 to $2,122,765.90
• Average gross profit: $848,004.59
• Median gross profit: $816,859
• Gross profit range: $719,580.38 to $1,038,720.90
• Average gross profit margin: 52.90%
• Median gross profit margin: 54.07%
• Gross profit margin range: 48.93% to 58.60%

The spread in franchised gross sales is material: the top reported unit was about $884,000 above the lowest reported unit. That indicates meaningful unit-level variability even within a very small sample.

Two important cautions:

• These figures are not audited, according to the disclosure.
• The franchised sample is only 3 outlets, with 1 affiliate outlet shown separately, so the numbers are informative but limited.

Also, revenue is not profit. Even the disclosed gross profit is not the same as net income, because it does not include all operating expenses, debt service, owner compensation, taxes, occupancy costs, or other unit-level costs unless specifically included, and the disclosure does not establish net profitability.

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• Model: B2C restaurant business
• Revenue pattern: Primarily ongoing sales rather than one-time project revenue
• Operations: Physical restaurant location with a designated general manager required
• Staffing: Manager-led operation with training and ongoing staff systems implied by the required learning management system
• Infrastructure: Technology appears to be a meaningful part of the operating model, with recurring technology and LMS fees
• Territory: Non-exclusive

This appears to be an operating business that requires day-to-day restaurant execution rather than a lightly managed format.

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Advantages

• Item 19 includes actual 2024 sales and gross profit figures for franchised outlets and an affiliate outlet.
• Reported franchised gross sales were above $1.2 million at the low end of the disclosed range.
• The system is small but stable in 2024, with 3 franchised outlets at both the start and end of the year.
• The royalty rate is percentage-based early on, with a disclosed structure that is straightforward to model.

Considerations

• Initial investment is high at $506,700 to $890,200.
• The franchised performance sample is only 3 units, which limits how much can be inferred.
• The royalty becomes the greater of $4,000 per month or 5% of gross sales, which can increase pressure during weaker sales periods.
• Franchisees face multiple recurring obligations beyond royalty, including brand fund, local marketing expectations, technology, and LMS costs.
• Territory is non-exclusive, so the disclosure does not indicate protected exclusivity.

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This franchise may fit an operator who is prepared for a restaurant business with a dedicated general manager, meaningful startup capital, and active oversight of unit operations.

It likely does not fit someone seeking a low-cost entry point, a passive ownership model, or a business with exclusive territorial protection clearly established in the disclosure.

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• The disclosure indicates litigation mentions, which warrants direct review of the relevant FDD sections.
• The franchisor states it has offered franchises since May 2018, so the franchised operating history is relatively limited.
• One year in Item 20 showed a decline in franchised outlets from 4 to 3 in 2023 before holding flat in 2024.
• The affiliate outlet does not pay royalty, which makes direct comparison to franchised outlet economics imperfect.
• The disclosure notes that outlet size and physical layout may differ materially from a future franchisee's restaurant.

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Ori'Zaba's presents a restaurant model with high startup costs, a required manager-led operating structure, and a small but concrete set of disclosed 2024 sales and gross profit figures. The main tradeoff is that reported unit revenue is meaningful, but the system is very small, the territory is non-exclusive, and the disclosure does not establish net profitability.

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