Bottom line
- Total investment $144K – $222K including a $35K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 65/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 Baba's Halal unit return on the cash you put in?
Unlevered ROIC · per unit
57%
In Yale's "attractive" band (30–60%)
Overview
About
Franchisees operate quick-service halal food restaurants, typically in high-foot-traffic urban locations, preparing and serving halal meat dishes, rice bowls, wraps, and beverages. Day-to-day operations include food prep, staffing, inventory management, POS operations, and customer service in a fast-casual format.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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
Baba's Halal presents elevated risk due to a micro-system size (3 units), missing financial disclosures, going concern questions, and high fees relative to unproven profitability—suitable only for investors with high risk tolerance and independent financial verification.
Score breakdown · what drove the 65 / 100 rating
- 01MEDOnly 3 operating units suggests extremely limited system scale and unproven model replicability
- 02MINORNo average revenue or net income disclosure (Item 19) prevents proper ROI validation and raises transparency concerns
- 03HIGHGoing Concern status is FALSE, indicating potential financial instability or recent restructuring at corporate level
- 04MEDHigh initial investment ($143.5K–$221.8K) paired with undisclosed profitability creates asymmetric risk for franchisees
- 05MINOR6% weekly royalty on gross revenues (not net) is aggressive and provides no cushion during low-revenue periods
- 06MINORTiny franchise base (3 units) means no meaningful track record and high vulnerability to any unit failures
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
25 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Baba's Halal · FDD (2025) PDF