Abu Omar HalalFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Abu Omar Halal franchise requires a total initial investment of $361K – $795K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $736K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $361K – $795K
- 24th pct Service Resta…
- Avg gross sales
- $736K
- 5th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 22
- 28th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
27% cash-on-cash return (based on EBITDA). Within the 15-30% range most franchise investors consider acceptable.
Bottom line
- Total investment $361K – $795K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $736K/year (median $780K), with an estimated 27% cash-on-cash return (based on EBITDA).
- Verdict A (Top Quintile) with a risk score of 48/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Abu Omar Halal Franchise LLC
- Predecessor
- or parent
- Prior franchisor entity
- Incorporated in
- TX
- HQ
- 2603 Augusta Drive, Unit 175, Houston, Texas 77057
- Auditor
- OAK Advisors, LLC
- Audited financials
- Franchisor revenue
- $0
- vs $0 prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Affiliated brands
- Abu Omar Halal
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate quick-service halal restaurants, managing daily food preparation, customer service, inventory control, and point-of-sale operations. Core activities include sourcing halal-certified meats, preparing traditional dishes (kebabs, shawarma, rice bowls), managing drive-thru or counter service, and maintaining health/food safety compliance.
- CEO
- Mohammad Omar Altawaha
- Headquarters
- TX
- Founded
- 2023
- FDD year
- 2025
- States available
- 5
FDD Item 7 · 2025 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Grand Opening Advertisingnot refundable | $10K | $10K | |
| Prepaid Rent and Security Deposit | $8K | $54K | |
| Leasehold Improvementsnot refundable | $150K | $300K | |
| Architect's and Engineer's Feesnot refundable | $5K | $18K | |
| Restaurant Equipmentnot refundable | $70K | $120K | |
| POS Systemnot refundable | $2K | $5K | |
| Security Alarm and Video Monitoring Systemnot refundable | $2K | $5K | |
| Signagenot refundable | $6K | $8K | |
| Utility Deposits | $500 | $1K | |
| Vehiclenot refundable | $10K | $20K | |
| Vehicle Wrapnot refundable | $1K | $3K | |
| Office and Store Suppliesnot refundable | $800 | $2K | |
| Opening Inventorynot refundable | $2K | $20K | |
| Insurancenot refundable | $3K | $4K | |
| Licenses and Permitsnot refundable | $1K | $4K | |
| Professional Feesnot refundable | $2K | $5K | |
| Travel, Lodging, Meals, Etc. for Initial Trainingnot refundable | $10K | $15K | |
| Additional Funds (for 6 months)not refundable | $45K | $168K | |
| Total initial investment | $361K | $795K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$74K
10.0% margin
Unlevered ROIC
11%
EBITDA / total invested capital
Payback
9.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $361K – $795K
- Better than avg vs category
- Liquid capital req'd
- $45K – $168K
- Better than avg vs category
- Franchise fee
- $25K – $35K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 3.7 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $10K |
| Renewal fee | $3K |
| Inventory (initial) | $2K – $22K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $736K
- Per unit, per year
- Median gross sales
- $780K
- Avg ebitda
- $154K
- Reported as EBITDA in FDD Item 19
- Cash-on-cash
- 26.7%
- Based on EBITDA / investment midpoint
- Item 19 type
- Affiliate-owned locations
- Sample size
- 11 units
- vs category median 13
- Range (low → high)
- $415K→$1.1M
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Abu Omar Halal Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 22
- Opened
- 3
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 22
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 8
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Michigan
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Abu Omar Halal presents moderate-to-cautious risk due to unsubstantiated financial claims, unknown growth metrics, system immaturity, and lack of disclosed performance data.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $35,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · OAK Advisors, LLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 48 / 100 rating
- 01MINORUnknown unit growth trajectory with only 22 locations raises questions about system expansion viability and franchisee recruitment success
- 02MINORNo Item 19 (Financial Performance Representations) disclosure limits ability to validate the $735,738 average revenue claim across all franchisees
- 03MINORHigh investment range ($361k-$795k) with 21% net margin requires strong unit economics validation across varying locations and performance tiers
- 04MEDRoyalty burden of 6% on gross sales combined with typical QSR operating costs (food ~28-30%, labor ~30%) leaves limited margin for error
- 05MEDSmall franchise system size (22 units) indicates limited brand recognition, purchasing power, and operational support infrastructure
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Geographic/Population-based |
| Protected territory | Yes |
| Territory population | 100,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Termination notice | 30 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 14 hrs
- On-the-job training
- 57 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Online
Item 20 · call current owners
Franchisee Contacts
13 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Abu Omar Halal · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Abu Omar Halal franchise?
The total investment to open a Abu Omar Halal franchise ranges from $361K – $795K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Abu Omar Halal franchise owners earn?
According to Item 19 of the Abu Omar Halal FDD, the average gross sales per unit is $736K. The median is $780K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Abu Omar Halal's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Abu Omar Halal (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Abu Omar Halal franchise locations are there?
As of their most recent FDD filing, Abu Omar Halal has 22 total units in the United States, including 0 franchised units and 22 company-owned units. 3 new units were opened in the latest reporting year.
Is Abu Omar Halal a good franchise to buy?
FranchiseVerdict rates Abu Omar Halal as a A-grade franchise with a risk score of 48 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.