German Doner Kebab Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
German Doner Kebab is a fast-casual franchise serving doner kebabs with grilled meats, vegetables, and sauces in signature bread. Franchisees run the restaurants, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A German Doner Kebab franchise requires a total initial investment of $636K – $1.1M, including a $30K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $636K – $1.1M
- 85th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 9
- 35th 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 $636K – $1.1M including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSAudited financial statements for FY ended Dec 31, 2024 (most recent). Total net revenues of $1,016,634 comprise food sales $537,952, royalty fees $258,683, advertising fees $140,740, commissions $52,105, and initial franchise fee accretion $27,154. Net loss of $1,513,634; stockholder's deficit of $7,261,015. Going-concern emphasis: startup franchisor dependent on continued working capital advances from GDKI and Hero Brands, Ltd. Auditor report signed Cincinnati, Ohio, September 5, 2025 (firm name not captured in text).
- RISKVerdict C (Average), verdict score 46/100 (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
- GDK USA, INC.
- Parent company
- GDK International, Ltd.
- Ultimate parent
- Hero Brands Ltd.
- Predecessor
- Doner Kebab DMCC (formerly Doner Kebab JLT FZ)
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Simon Wallis
- Incorporated in
- DE
- HQ
- 11015 Beauty Lane, Dallas, Texas 75229
- Auditor
- GBQ Partners LLC
- Audited financials
- Franchisor revenue
- $1.0M
- vs $1.0M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Affiliated brands
- United Brands Ltd
- UB
- Hero Brands Ltd
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Simon Wallis
- Headquarters
- TX
- Founded
- 2017
- FDD year
- 2025
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 34% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $30K | $30K | |
| Lease, Utility & Security Depositsnot refundable | $25K | $30K | |
| Leasehold Improvementsnot refundable | $0 | $250K | |
| Mechanical, Electrical and Plumbingnot refundable | $125K | $175K | |
| Signagenot refundable | $20K | $35K | |
| Restaurant Equipmentnot refundable | $140K | $175K | |
| Fit Out Materials & Installationnot refundable | $150K | $205K | |
| Hardware and Softwarenot refundable | $28K | $30K | |
| Furniture & Fixturesnot refundable | $16K | $20K | |
| Office Supplies & Misc.not refundable | $2K | $5K | |
| Business Licensesnot refundable | $1K | $5K | |
| Professional Feesnot refundable | $10K | $15K | |
| Insurancenot refundable | $9K | $18K | |
| Initial Trainingnot refundable | $5K | $10K | |
| Opening Inventorynot refundable | $15K | $20K | |
| Pre-Launch, Soft Launch and Grand Opening Marketingnot refundable | $10K | $15K | |
| Property Agentnot refundable | — | — | |
| Architects and Project Manager Feesnot refundable | $25K | $50K | |
| Additional Funds (Approx. 3 months)not refundable | $15K | $20K | |
| Small Waresnot refundable | $11K | $15K | |
| Total initial investment | $636K | $1.1M |
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
- $636K – $1.1M
- Bottom third — review vs category
- Liquid capital req'd
- $15K – $20K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $180 |
| Training fee | $5K |
| Transfer fee | $5 |
| Renewal fee | $15K |
| Inventory (initial) | $15K – $20K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
German Doner Kebab did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one German Doner Kebab unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
11%
Below the 30–60% attractive-franchise band
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: 2025 FDD
Financial Performance
Audited financial statements for FY ended Dec 31, 2024 (most recent). Total net revenues of $1,016,634 comprise food sales $537,952, royalty fees $258,683, advertising fees $140,740, commissions $52,105, and initial franchise fee accretion $27,154. Net loss of $1,513,634; stockholder's deficit of $7,261,015. Going-concern emphasis: startup franchisor dependent on continued working capital advances from GDKI and Hero Brands, Ltd. Auditor report signed Cincinnati, Ohio, September 5, 2025 (firm name not captured in text).
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
Net unit growth of +800.0% over 3 years (2 opened, 0 closed).
Multi-unit rate
50% of franchisees own multiple units, a moderate multi-unit rate.
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 German Doner Kebab Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 9
- Opened
- 2
- 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
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 50.0%
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 2
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $2.6M
- Median loan
- $646K
- average
- Charge-off rate
- N/A
- limited sample (4 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
⚠ Grade capped at C: the auditor disclosed a going-concern note (FDD Item 21). The verdict score reflects the underlying financials before that cap.
Early-stage concept with unproven unit economics, minimal financial transparency, and insufficient operating history to validate franchise viability.
Litigation (Item 3)
No litigation required to be disclosed.
Largest disclosed settlement: $150,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · GBQ Partners LLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- 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 46 / 100 verdict
- 01MEDNo Item 19 (Average Unit Volumes) disclosed — impossible to assess profitability or ROI credibility
- 02MINORVery small system (9 units) limits data reliability and creates survivorship bias in unit growth claims
- 03MINORWide investment range ($635.5K–$1.123M) suggests high variability in startup costs with unclear cost drivers
- 04MINORRapid unit growth (28.6% YoY) in micro-system may reflect cherry-picked locations or unsustainable expansion
- 05MINOR6% royalty on gross revenue (not net) means profitability pressure regardless of actual earnings
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Delaware |
| Jury trial waiver | Yes |
| Governing law | DE |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 120 hrs
- Training location
- American Dream Mall, Bergen County, NJ and/or franchisee outlet location
- Ongoing training
- Required
- Time to open
- 7 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- 3SPOS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: 3SPOS
Item 20 · call current owners
Franchisee Contacts
5 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
German Doner Kebab · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a German Doner Kebab franchise?
The total investment to open a German Doner Kebab franchise ranges from $636K – $1.1M, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do German Doner Kebab franchise owners earn?
German Doner Kebab does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the German Doner Kebab 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 German Doner Kebab FDD and qualifies whose outlets they describe.
What is German Doner Kebab's franchise failure rate?
SBA 7(a) loan charge-off data is not available for German Doner Kebab (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 German Doner Kebab franchise locations are there?
As of their most recent FDD filing, German Doner Kebab has 9 total units in the United States, including 9 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is German Doner Kebab a good franchise to buy?
FranchiseVerdict rates German Doner Kebab as a C-grade franchise with a verdict score of 46 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?
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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.