Bottom line
- Total investment $192K – $410K including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.5M/year (median $1.2M).
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
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 Shah’s Halal unit return on the cash you put in?
Unlevered ROIC · per unit
77%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Shah’s Halal units return on equity?
Equity IRR · 5-yr
34.9%
4.47× MOIC
Year-1 DSCR
2.34×
EBITDA ÷ debt service
Equity required
$5.2M
on $14.5M purchase
Total debt
$9.4M
SBA $5.0M + senior + seller note
Overview
About
Shah's Halal franchisees operate fast-casual halal food concepts, typically in high-traffic urban locations, preparing and serving halal-certified meat, rice bowls, platters, and beverages. Day-to-day operations involve food preparation, inventory management, staffing, and customer service in a quick-service restaurant model with limited table service.
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 · 14 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
Shah's Halal presents CAUTION-level risk due to regulatory consent order, absent profitability disclosure, going concern questions, and unclear unit growth dynamics despite solid average revenue figures.
Score breakdown · what drove the 57 / 100 rating
- 01HIGHGoing Concern status is FALSE — franchisor may have material financial/operational distress
- 02MINORRecent Maryland Securities Division consent order (October 2024) indicates regulatory scrutiny and past compliance issues
- 03MEDNet Income not disclosed in FDD Item 19 — cannot verify actual profitability claims against stated $1.45M average revenue
- 04MINORUnit growth trajectory unknown — 77 units provides insufficient context on system expansion/contraction trend
- 05MEDHigh investment range ($192K-$410K) combined with undisclosed profitability creates unclear ROI visibility
- 06MINOR5% royalty on gross revenue (not net) means franchisees pay royalties even during unprofitable periods
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
57 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Shah’s Halal · FDD (2025) PDF