Abu Omar Halal Franchise Cost, Revenue & Review 2026
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 →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $362K – $797K
- 60th pct Service Resta…
- Avg gross sales
- $586K
- Company-owned only4th pct Service Resta…
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 22
- 50th 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 avg · 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 55/100 (higher is better).
- 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
- Parent company
- None
- 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
- Franchisor revenue
- $0
- vs $0 prior year
- ⚠ 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 12% below 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%
- percentage · 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 52% below the quick-service restaurants norm.
Company-owned outlets only - not franchisee performance
Source: FDD 2026 · Item 19
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
$82K
14.0% margin
Unlevered ROIC
12%
EBITDA / total invested capital
Payback
8.4 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $154K as Adjusted EBITDA. Our model estimates $82K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because Adjusted EBITDA deducts different expense categories than our model.
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real 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?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
12%
Below the 30–60% attractive-franchise band
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Abu Omar Halal units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$820K
on $4.1M purchase
Total debt
$3.3M
SBA $2.0M + senior + seller note
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
- vs category median 20
- Range (low → high)
- $296K→$930K
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- 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 782 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 average of 7.9%.
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 averages
How Abu Omar Halal Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 22
- 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
- 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 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)
No litigation is required to be disclosed in Item 3.
Largest disclosed settlement: $35,000
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 55 / 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 |
| 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.
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 22 total units in the United States, including 0 franchised units and 22 company-owned units.
Is Abu Omar Halal a good franchise to buy?
FranchiseVerdict rates Abu Omar Halal as a C-grade franchise with a verdict score of 55 out of 100 (higher is better), 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.
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.