Naf Naf Middle Eastern Grill
Bottom line
- Total investment $501K – $819K including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.0M/year (median $1.1M). Estimated payback in 2.1 years.
- Rated STRONG with a risk score of 40/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
- System growing at 33.3% CAGR over 3 years with 41 total units — strong expansion trajectory.
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 Naf Naf Middle Eastern Grill unit return on the cash you put in?
Unlevered ROIC · per unit
26%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Naf Naf Middle Eastern Grill units return on equity?
Equity IRR · 5-yr
47.6%
6.99× MOIC
Year-1 DSCR
1.92×
EBITDA ÷ debt service
Equity required
$2.3M
on $10.4M purchase
Total debt
$8.1M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate fast-casual Middle Eastern grill concepts serving shawarma, kebabs, and Mediterranean bowls. Day-to-day operations involve food prep, counter service, inventory management, and customer-facing service in a QSR environment with average unit volumes exceeding $1M annually.
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 · 11 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Moderate-to-caution risk profile: solid unit growth and revenue metrics offset by lack of financial disclosure verification, aggressive expansion trajectory, and unclear franchisor financial status.
Score breakdown · what drove the 40 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot verify the $311,877 avg net income claim independently
- 02MINORRapid unit growth of 25% YoY suggests expansion velocity that may outpace quality control and support infrastructure
- 03MEDHigh initial investment ($501k-$819k) relative to disclosed net income creates 1.6-2.6 year payback pressure
- 04MINOR5% royalty on bi-weekly net sales is unusual structure — clarifies whether this applies to gross or net, creating potential ambiguity
- 05HIGHGoing Concern = False is ambiguous — does not clearly indicate financial health status of franchisor
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
18 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Naf Naf Middle Eastern Grill · FDD (2025) PDF