Naz’s Halal Food
Bottom line
- Total investment $269K – $501K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.7M/year (median $1.6M).
- Rated STRONG with a risk score of 47/100.
- 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 Naz’s Halal Food unit return on the cash you put in?
Unlevered ROIC · per unit
63%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Naz’s Halal Food units return on equity?
Equity IRR · 5-yr
36.6%
4.76× MOIC
Year-1 DSCR
2.25×
EBITDA ÷ debt service
Equity required
$4.5M
on $13.6M purchase
Total debt
$9.1M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate quick-service halal food restaurants serving Mediterranean/Middle Eastern cuisine (likely rice bowls, wraps, grilled meats). Daily operations include food preparation, inventory management, staffing, and point-of-sale transactions in high-traffic urban or suburban locations. The model emphasizes speed and customization typical of fast-casual dining.
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 · 6 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
Rapid expansion with undisclosed net income creates uncertainty about unit-level profitability; prospective franchisees cannot validate ROI claims against actual franchisee earnings.
Score breakdown · what drove the 47 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — unable to validate actual profitability despite $1.7M average revenue claim
- 02MINORAggressive 50% YoY unit growth (43 units) suggests rapid scaling that may outpace operational support and quality control
- 03MINORHigh investment range ($269K–$501K) with 6% royalty creates significant break-even threshold requiring ~$450K+ annual revenue just to cover royalties and debt service
- 04HIGHNo litigation disclosed is positive, but rapid growth + missing profitability data increases risk of undisclosed disputes
- 05MEDFranchise fee ($40K) is moderate, but combined with high startup costs and non-disclosed margins limits financial transparency
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
Naz’s Halal Food · FDD (2025) PDF