How much does an Aroma franchise cost? The lawsuit revealing the network's behind-the-scenes

A former Aroma franchisee is suing the chain for NIS 5 million, revealing in the lawsuit the franchise cost (NIS 100,000 in 2005), royalty rates (4%-6% of revenue), and the profit multiplier for transferring rights (4.37). The lawsuit deals with the failure to obtain a permit for non-conforming use that prevented the sale of the franchise.

Eran Hirshfeld, who operated an Aroma branch at the Paz Gei Iron station for about 20 years, is suing the chain for NIS 5 million. The lawsuit, filed on July 19, 2026, to the Haifa District Court, reveals data on franchise costs: NIS 100,000 in 2005, royalties of 4% of monthly revenue (and up to 6% above half a million shekels), and consulting fees of NIS 50,000. Additionally, transferring a franchise to a third party is priced at an annual profit multiplier of 4.37. Hirshfeld claims that Aroma did not handle obtaining a permit for non-conforming use, which prevented him from selling the franchise and caused him damages of NIS 3.8 million. He accuses the chain of misrepresentation, after it announced the cessation of operations at the branch but reopened it itself in September 2025. Aroma has not yet filed a statement of defense.