Abu Omar Halal
Formerly known as Art of Home Franchising
Bottom line
- Total investment $361K – $795K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $736K/year (median $780K). Estimated payback in 3.7 years.
- Rated STRONG with a risk score of 52/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Abu Omar Halal unit return on the cash you put in?
Unlevered ROIC · per unit
16%
Below typical band (30–60%)
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
$1.2M
on $5.9M purchase
Total debt
$4.7M
SBA $2.9M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 52 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
13 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Abu Omar Halal · FDD (2025) PDF