Naz’s Halal FoodFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Naz’s Halal Food franchise requires a total initial investment of $269K – $501K, including a $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.7M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $269K – $501K
- 15th pct Service Resta…
- Avg gross sales
- $1.7M
- 18th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 43
- 35th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 4.4x in gross revenue, well above the typical 1.5-2.5x range.
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
Franchised units fell from 30 to 14 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
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).
- Verdict A (Top Quintile) with a risk score of 11/100.
- Auditor 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
- Legal entity
- Naz’s Franchising, LLC
- Parent company
- Naz’s Holdco, LLC
- Ultimate parent
- Naz's Holdco, LLC
- Incorporated in
- NY
- HQ
- 146 New Bridge, 2nd Floor, East Suite, Hicksville, New York 11801
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Affiliated brands
- Nazs Halal
Other brands the franchisor or its parent operates (Item 1).
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.
- CEO
- Ismatullah Mohmend
- Headquarters
- NY
- Founded
- 2025
- FDD year
- 2025
- States available
- 8
FDD Item 7 · 2025 filing · 23 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Training Expenses | $2K | $2K | |
| Real Property (3 months) | $9K | $27K | |
| Furniture, Fixtures, and Equipment | $35K | $75K | |
| Leasehold Improvements | $100K | $170K | |
| Professional Fees | $4K | $12K | |
| Bookkeeping Services (3 months) | $1K | $2K | |
| Licenses and Permits | $5K | $15K | |
| Computer System | $3K | $8K | |
| POS Licensing Fee (3 months) | $1K | $3K | |
| QuickBooks Licensing Fee | $420 | $500 | |
| Opening Inventory | $11K | $24K | |
| Supplies | $3K | $6K | |
| Insurance (3 months) | $4K | $7K | |
| Security and Utility Deposits | $6K | $18K | |
| Signage | $5K | $10K | |
| Initial Marketing Materials Package | $2K | $7K | |
| Grand Opening Advertising | $10K | $10K | |
| Architect Designs | $5K | $18K | |
| Security System | $3K | $8K | |
| Total initial investment | $269K | $501K |
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$170K
10.0% margin
Unlevered ROIC
42%
EBITDA / total invested capital
Payback
29 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $269K – $501K
- Better than avg vs category
- Liquid capital req'd
- $15K – $25K
- Better than avg vs category
- Franchise fee
- $25K – $40K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $250 |
| Training fee | $2K |
| Transfer fee | $20K |
| Renewal fee | $5K |
| Inventory (initial) | $14K – $30K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $1.7M
- Per unit, per year
- Median gross sales
- $1.6M
- Item 19 type
- gross_sales
- Sample size
- 33 units
- vs category median 13 · large
- Range (low → high)
- $440K→$3.4M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
Revenue is 4.4x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Full-Service Restaurants averages
How Naz’s Halal Food Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 43
- Opened
- 10
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.3%
- Company-owned
- 13
- Corporate units in the system
- % franchised
- 70%
- vs corporate-owned
- Net growth (yr3)
- +50.0%
- Net unit change last year
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 16
- Franchisor's next-year forecast
- Ceased ops
- 2.3%
- Units that stopped operating
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 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.
Available to sell in · Item 12
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
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.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP⚠ Going-concern note flagged
Supplier relationship · Items 8 & 16
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 11 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 0.1 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | New York City, New York |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 38 hrs
- On-the-job training
- 62 hrs
- Training location
- On-site and corporate
- Time to open
- 12 mo
- From signing to launch
- POS system
- Toast POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast POS
Item 20 · call current owners
Franchisee Contacts
7 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Naz’s Halal Food · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Naz’s Halal Food franchise?
The total investment to open a Naz’s Halal Food franchise ranges from $269K – $501K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Naz’s Halal Food franchise owners earn?
According to Item 19 of the Naz’s Halal Food FDD, the average gross sales per unit is $1.7M. The median is $1.6M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Naz’s Halal Food's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Naz’s Halal Food (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 Naz’s Halal Food franchise locations are there?
As of their most recent FDD filing, Naz’s Halal Food has 43 total units in the United States, including 30 franchised units and 13 company-owned units. 10 new units were opened in the latest reporting year.
Is Naz’s Halal Food a good franchise to buy?
FranchiseVerdict rates Naz’s Halal Food as a A-grade franchise with a risk score of 11 out of 100, 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.
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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.