Abu Omar Halal Franchise Cost, Revenue & Review 2026
- Investment
- $362K – $797K
- Disclosed sales
- $586K
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Abu Omar Halal is a fast-casual franchise serving halal Middle Eastern street food like gyros, rice bowls, and wraps from restaurants and food trucks. Franchisees run the locations, managing food prep, staffing, and service.
FranchiseVerdict summary · 2026
A Abu Omar Halal franchise requires a total initial investment of $362K – $797K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $586K[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Limited operating history: franchising since 2025. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: partial✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $362K – $797K
- 59th pct Service Resta…
- Avg gross sales
- $586K
- Company-owned only
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 26
- 53rd pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $362K – $797K including a $35K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $586K/year (median $613K) (company-owned outlets only - not franchisee performance), with an estimated 15% cash-on-cash return (based on Adjusted EBITDA).
- RISKVerdict C (Average), verdict score 58/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed) (Item 20).
- FLAGAuditor 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
Corporate structure & franchisor financials
- Legal entity
- Abu Omar Halal Franchise LLC
- Predecessor
- or parent
- Prior franchisor entity
- CEO title
- President
- Mohammad Omar Altawaha
- Incorporated in
- Texas
- HQ
- 2603 Augusta Drive, Unit 175, Houston, Texas 77057
- Auditor
- OAK Advisors, LLC
- Audited financials
- ⚠ Going-concern note
- Disclosed in FDD 2026
- 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
- CEO
- Mohammad Omar Altawaha
- Headquarters
- Texas
- Founded
- 2023
- FDD year
- 2026
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 19% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown19 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $362K – $797K
- Middle of category vs category
- Liquid capital req'd
- $47K – $173K
- Bottom third — review vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 0.1%
- vs 9–13% typical
- Payback period
- 6.8 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 | $5K |
| Renewal fee | $3K |
| Inventory (initial) | $2K – $20K |
| Total fee load | 0.1% of rev |
A 0.1% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 40% below the quick-service restaurants norm.
Company-owned outlets only - not franchisee performance
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Abu Omar Halal until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$690K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $154K as Adjusted EBITDA. This is a disclosed figure, not our estimate — we publish no modelled profit for Abu Omar Halal.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Abu Omar Halal unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
- Avg gross sales
- $586K
- Per unit, per year
- Median gross sales
- $613K
- Avg adjusted ebitda
- $154K
- Reported as Adjusted EBITDA in FDD Item 19
- Cash-on-cash
- 14.7%
- Based on Adjusted EBITDA / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical
- Sample size
- 14 outlets
- vs category median 19
- Range (low → high)
- $296K→$930KCited, not corroborated — printed on page 61 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $586K/year in gross sales. Revenue-to-investment ratio: 1.0x. Company-owned outlets only - not franchisee performance.
Fee burden
Total ongoing fee load of 0.1% — below the Quick-Service Restaurants median of 7.5%.
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Abu Omar Halal Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 26
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 26
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 5 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
5
states with franchisees (per FDD Item 12)
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.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation is required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · OAK Advisors, LLCⓘ Going-concern language present, but this is an early-stage franchisor with limited operating history — common for new systems and not necessarily a sign of distress.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 58 / 100 verdict
- 01MINORUnknown unit growth trajectory with only 22 locations raises questions about system expansion viability and franchisee recruitment success
- 02MINORHigh investment range ($361k-$795k) with 21% net margin requires strong unit economics validation across varying locations and performance tiers
- 03MEDRoyalty burden of 6% on gross sales combined with typical QSR operating costs (food ~28-30%, labor ~30%) leaves limited margin for error
- 04MEDSmall 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
What are you signing up for?
Ongoing fees run about 0.1% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 5 mi |
| Territory population | 100,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Houston, Texas |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 64 hrs
- Training location
- Houston, Texas and/or on site at the Franchisee's location
- Ongoing training
- Required
- Time to open
- 8 mo
- From signing to launch
- Site selection
- franchisor_approved_vendor
- Franchisor financing
- Not offered
- Item 10
- POS system
- Toast POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast POS
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 $362K – $797K, 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 $586K. The median is $613K. Important context: Company-owned outlets only - not franchisee performance. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Abu Omar Halal?
Abu Omar Halal is franchised by Abu Omar Halal Franchise LLC. The FDD names no parent company. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Abu Omar Halal FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Abu Omar Halal FDD and qualifies whose outlets they describe.
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 26 total units in the United States.
Is Abu Omar Halal a good franchise to buy?
FranchiseVerdict rates Abu Omar Halal as a C-grade franchise with a verdict score of 58 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
Are you the franchisor?
If you represent Abu Omar Halal, you can request corrections or provide updated information.
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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.