Shah’s HalalFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Shah’s Halal franchise requires a total initial investment of $192K – $410K, including a $30K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.5M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $192K – $410K
- 9th pct Service Resta…
- Avg gross sales
- $1.5M
- 16th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 77
- 40th 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 4.8x in gross revenue, well above the typical 1.5-2.5x range.
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).
- Verdict A (Top Quintile) with a risk score of 9/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Shah’s Halal Franchising Inc.
- Parent company
- Shah’s Halal Food Partners, Inc.
- Predecessor
- Our parent company
- Prior franchisor entity
- Incorporated in
- NY
- HQ
- 6500 New Horizons Blvd., Amityville, NY 11701
- Auditor
- Allied CPAs, P.C.
- Audited financials
- Franchisor revenue
- $3.2M
- Most recent fiscal year
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.
- CEO
- Khalid Mashriqi
- Headquarters
- NY
- FDD year
- 2025
- States available
- 14
FDD Item 7 · 2025 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $25K | $30K | |
| Travel Expenses to Attend Trainingnot refundable | $2K | $20K | |
| Real Property | $3K | $10K | |
| Build-Out/Construction | $80K | $160K | |
| Fixture Package | $30K | $50K | |
| Initial Inventory | $10K | $30K | |
| Marketing Supplies | $2K | $7K | |
| Signage | $10K | $28K | |
| Computer Hardware, Software, website and POS System | $4K | $6K | |
| Insurance | $6K | $10K | |
| Licenses, Permits | $1K | $3K | |
| Grand Opening Campaign | $1K | $5K | |
| Legal & Accounting | $3K | $6K | |
| Miscellaneous Opening Costs | $5K | $15K | |
| Additional Funds - 3 Months | $10K | $30K | |
| Total initial investment | $192K | $410K |
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
$175K
12.0% margin
Unlevered ROIC
54%
EBITDA / total invested capital
Payback
22 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $192K – $410K
- Better than avg vs category
- Liquid capital req'd
- $10K – $30K
- Better than avg vs category
- Franchise fee
- $25K – $30K
- Better than avg vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $15K |
| Renewal fee | $8K |
| Inventory (initial) | $10K – $30K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.5M
- Per unit, per year
- Median gross sales
- $1.2M
- Item 19 type
- gross_sales
- Sample size
- 50 units
- vs category median 13 · large
- Range (low → high)
- $372K→$4.5M
- Cohort dispersion (min → max)
- Quartile band
- $635K→$2.8M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
Revenue is 4.8x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Full-Service Restaurants averages
How Shah’s Halal Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 77
- Opened
- 20
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 16
- Corporate units in the system
- % franchised
- 79%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 2
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 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
- North Dakota
- Rhode Island
- South Dakota
- Virginia
States where the franchisor is registered to sell new franchises (FDD registration filings).
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
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
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.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Allied CPAs, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 9 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 1 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 19 hrs
- On-the-job training
- 85 hrs
- Training location
- Off-site and On-site
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
57 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Shah’s Halal · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Shah’s Halal franchise?
The total investment to open a Shah’s Halal franchise ranges from $192K – $410K, 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 Shah’s Halal franchise owners earn?
According to Item 19 of the Shah’s Halal FDD, the average gross sales per unit is $1.5M. The median is $1.2M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Shah’s Halal's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Shah’s Halal (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 Shah’s Halal franchise locations are there?
As of their most recent FDD filing, Shah’s Halal has 77 total units in the United States, including 0 franchised units and 16 company-owned units. 20 new units were opened in the latest reporting year.
Is Shah’s Halal a good franchise to buy?
FranchiseVerdict rates Shah’s Halal as a A-grade franchise with a risk score of 9 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.
For franchisors
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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.