Abu Omar Halal Food Truck Franchise Cost & 2026 FDD Data
55/100
Middle tier
55 this brand51 Quick-Service Restaurants medianlikely 40–70: narrower with more SBA loans (low confidence)
Higher is better · an editorial assessment, not investment advice
#1,376 of 3,068 graded brands
Why a C: Helped by legal record and transparency. Held back by scale. See all six factors
- Total investment
- $267K – $438K
- Permanent Food Truck format
- Avg gross sales
- $586K
- “Food Truck Affiliate Locations (14)”, 14 outlets; not profit
- SBA charge-off
- Not SBA-matched
Data from the FDD filing. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Abu Omar Halal Food Truck franchise requires a total initial investment of $267K – $438K for the Permanent Food Truck format (the filing prices $267K to $1.2M across four formats), including a $35K franchise fee. Once open, the ongoing royalty is 6.0%. Per the 2026 FDD, average gross sales were $586K (Item 19 group “Food Truck Affiliate Locations (14)”, 14 outlets; gross sales, not profit). Verdict grade: C (Middle tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · What one unit could make and lose →
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.
Sources, dates and evidence
FDD issued: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: 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 scored5 of 5 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Quick-Service Restaurants median
Top edge: green = better than the Quick-Service Restaurants median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $586K/year (company-owned outlets only - not franchisee performance; Item 19 group “Food Truck Affiliate Locations (14)”, 14 outlets; gross sales, not profit).
- GROWTHIn the latest Item 20 year, the number of franchised outlets did not change (0 opened, 0 closed).
- FLAGAuditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
AT STAKEOne unit at the Item 7 midpoint: $46K a year in payments on assumed SBA 7(a)-style terms.You put in about $70K of your own cash and personally guarantee a $282K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (4)
- Going-concern language in Item 21 (audited financials), for an early-stage franchisor. Ask how the franchisor is funded.
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- You waive a jury trial in disputes with the franchisor (Item 17, renewal, termination and disputes).
- An owner must run the business personally (Item 15, owner participation). Ask whether a trained manager can ever stand in.
Checked and clear: no lawsuit naming the franchisor in Item 3 and the full filing on file, and an Item 19 average from 22 units. Not on file here, so ask: unit trend, SBA charge-off rate against the category median and supplier rebates.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 28% below the Quick-Service Restaurants median ($487K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Abu Omar Halal Franchise LLC (Item 1: 2603 Augusta Drive, Unit 175, Houston, Texas 77057) and your lender what they require, and keep living costs for the first year outside the deal.
Item 7 (startup costs) · 4 formats · 2026 FDD
Every building format
The filing prints a separate Item 7 table for each format.
4 formats, from $267K to $1.2M
| Format | Total investment | Page |
|---|---|---|
| Restaurant | $362K – $797K | p.23 |
| Conversion Restaurant | $294K – $547K | p.26 |
| Permanent Food Truck(the range shown above) | $267K – $438K | p.30 |
| Restaurant & Mobile Food Truck | $596K – $1.2M | p.33 |
Full Item 7 breakdown19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $35K | $35K | |
| Grand Opening Advertising and Marketing | $10K | $10K | |
| Prepaid Rent and Security Deposit | $6K | $12K | |
| Architect’s and Engineer’s Fees | $1.5K | $2.5K | |
| Food Truck Equipment | $80K | $150K | |
| POS System | $700 | $700 | |
| Security Alarm and Video Monitoring System | $4K | $8K | |
| Signage | $3K | $5K | |
| Utility Deposits | $0 | $1K | |
| Vehicle | $10K | $20K | |
| Vehicle Wrap | $1.3K | $2.5K | |
| Food Truck, Wrap and Signage | $60K | $100K | |
| Office and Store Supplies | $800 | $1K | |
| Opening Inventory | $15K | $20K | |
| Insurance | $2.5K | $3K | |
| Licenses and Permits | $1.7K | $2K | |
| Professional Fees | $1.5K | $4.5K | |
| Travel, Lodging, Meals, Etc. for Initial Training | $10K | $15K | |
| Additional Funds (18) (for 6 months) | $23.8K | $45.8K | |
| Total initial investment | $267K | $438K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee$100 per month, covers up to three email addresses, website listing, and mobile app | $100/month |
| Transfer fee | $5,000 |
| Renewal fee | $2,500 |
| Total fee loadabove the Quick-Service Restaurants median of 7.0% (heavy) | 8.0% of sales |
What do units actually make?
Average gross sales are 38% below the Quick-Service Restaurants median ($950K).
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Abu Omar Halal Food Truck unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $586K (FDD p.61), and the royalty and ad fund take about $47K of that a year (Item 6). This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $46K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $352K Item 7 midpoint (Permanent Food Truck format) is a $282K loan, paid over 10 years at 10.5%: $46K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours.
What you put at risk
Your own cash in: about $70K Assumption (the part the loan does not cover of the $352K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $282K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Abu Omar Halal Food Truck unit leave you each year after the loan payment?
Item 19 reports $585,684 per unit. Company-owned outlets only - not franchisee performance.
Gross sales, not profit: the costs below decide what is left.
Item 6, as stored, a year. A fixed fee, so it comes off EBITDA as dollars, not a share of sales.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.
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.
Item 7 midpoint of $267K to $438K
Item 7's $24K to $46K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $282K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
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 · filed by Abu Omar Halal Franchise LLC
Financial performance
Percentile ranks within Quick-Service Restaurants
Each rank is among the Quick-Service Restaurants brands that report that figure (the count is under each bar).
vs Quick-Service Restaurants medians
How Abu Omar Halal Food Truck 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.
System figures: see Abu Omar Halal
System figures: see Abu Omar Halal
Government records
SBA loan data
Matched to this brand from SBA 7(a) and 504 FOIA loan records.
No SBA loan data available for this brand.
What are the risks?
The auditor flagged going-concern doubt (Item 21), the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade C: Middle tier, 55/100 (category median 51); the full grade is at the top of the page.
How the grade is built
Why a C, factor by factor
- Financial health NeutralAudited financials; going-concern language (early-stage franchisor)
- Unit economics NeutralAvg gross sales $586K on a $352K investment midpoint, 1.7x (gross sales, not profit)
- Unit growth NeutralNo Item 20 trend on file, so neutral
- Scale Weighs on it, weakest dimensionFranchising since 2025; mostly company-owned (0% franchised)
- Legal HelpsNo litigation naming the franchisor in Item 3
- Transparency HelpsItem 19 discloses financial performance; audited financials; no franchisor financial figures on file
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
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
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
System figures: see Abu Omar Halal
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 1 |
|---|---|
| Protected territory | Yes |
| Exclusive territory | No |
| Territory radius | 1–5 mi |
| Territory population | 100,000 |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | Owner must run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 25 mi |
| Right of first refusal | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Houston, Texas |
| Jury trial waiver | Yes |
| Governing law | Texas |
Items 10 (financing), 11 (training and support)
Training and operations
- On-the-job training
- 64 hrs
- Site selection
- franchisor_approved_vendor
- Franchisor financing
- Not offered
- Item 10
- POS system
- Toast POS
- Operating tech stack
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Franchisee contacts
We hold no owner list for this brand. Item 20 of the FDD lists the current and former owners; the free FDD is the source.
Frequently asked questions
How much does it cost to open a Abu Omar Halal Food Truck franchise?
Per the 2026 FDD, the total investment to open a Abu Omar Halal Food Truck franchise ranges from $267K to $438K for the Permanent Food Truck format, with an initial franchise fee of $35K. Across every format the filing prices, totals run from $267K to $1.2M (four formats). This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Abu Omar Halal Food Truck franchise owners earn?
According to Item 19 of the Abu Omar Halal Food Truck FDD, average gross sales were $586K (Item 19 group “Food Truck Affiliate Locations (14)”, 14 outlets; gross sales, not profit). Company-owned outlets only - not franchisee performance. What an owner keeps depends on location, operating costs and management.
Who owns Abu Omar Halal Food Truck?
Abu Omar Halal Food Truck is franchised by Abu Omar Halal Franchise LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Abu Omar Halal Food Truck 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 Food Truck FDD and qualifies whose outlets they describe.
What is Abu Omar Halal Food Truck's franchise failure rate?
There is no published franchise failure rate, and Abu Omar Halal Food Truck has too few resolved SBA 7(a) loans on file (fewer than 10) to show an SBA charge-off rate that would mean anything. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. Review the turnover and closure figures in Item 20 of the FDD and speak with current and former franchisees.
Is Abu Omar Halal Food Truck a good franchise to buy?
FranchiseVerdict gives Abu Omar Halal Food Truck a C Verdict grade (Middle tier) with a verdict score of 55 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by legal record (no litigation naming the franchisor in Item 3) and transparency. Held back by scale (franchising since 2025). The “Why a C” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Quick-Service Restaurants franchises
Similar investment first, then by grade
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.