The Halal Guys Franchise Cost, Revenue & Review 2026
- Investment
- $418K – $1.3M
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 24 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
The Halal Guys is a fast-casual franchise, grown from a famous NYC food cart, serving halal chicken and gyro platters, sandwiches, and its signature white sauce. Franchisees run restaurants managing food prep, counter service, and staffing.
FranchiseVerdict summary · 2026
A The Halal Guys franchise requires a total initial investment of $418K – $1.3M, including a $45K franchise fee and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $418K – $1.3M
- 66th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 85
- 74th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $418K – $1.3M including a $45K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better).
- GROWTHNegative: net -8 franchised outlets in the latest year (4 opened, 12 closed); 4 signed but not yet open (Item 20).
- DECLINESystem contracting at -9.1% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- The Halal Guys Franchise Inc.
- Ultimate parent
- The Halal Guys, Inc.
- FDD Item 1, page 8 of the 2025 FDD
- CEO title
- Chief Executive Officer
- Ahmed Abouelenein
- CEO experience
- 17 yrs
- Years in role or industry
- Incorporated in
- New Jersey
- HQ
- 10-02 34th Avenue, Astoria, New York 11106
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $12.4M
- vs $13.8M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- owns the Proprietary Marks
- that owns and operates food carts throughout the New York City area
- The Halal Guys
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Ahmed Abouelenein
- Headquarters
- NY
- Founded
- 2014
- FDD year
- 2025
- States available
- 16
Can you afford it, and what does the money buy?
Entry cost runs 78% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $25K | $100K |
| Equipment, build-out, other | $348K | $1.2M |
| Total initial investment | $418K | $1.3M |
Source: The Halal Guys 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $418K – $1.3M
- Middle of category vs category
- Liquid capital req'd
- $25K – $100K
- Middle of category vs category
- Franchise fee
- $45K – $45K
- Bottom third — review vs category
- Royalty
- 6.0%
- 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 |
| Transfer fee | $23K |
| Renewal fee | $23K |
| Inventory (initial) | $10K – $50K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
The Halal Guys makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one The Halal Guys unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -9.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How The Halal Guys Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 85
- Opened
- 4
- Last reporting year
- Closed
- 12
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 14.1%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 94%
- vs corporate-owned
- Net growth (3-yr)
- -9.1%
- Net unit change over 3 years
- 3-yr CAGR
- -9.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 7
- Reacquired
- 1
- Franchisor bought back
- Signed, not yet open
- 4
- 0.05 per open outlet · Item 20 Table 5
- Projected new
- 17
- Franchisor's next-year forecast
- Transfer rate
- 8.2%
- Owners selling to other franchisees
- Ceased ops
- 14.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 16 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
16
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 24
- Loan volume
- $17.4M
- Median loan
- $518K
- 50th percentile
- Charge-off rate
- Limited · 24 loans
- Limited SBA coverage: 24 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 24 loans
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 0
- Typical loan rate
- 7.6%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- n=12,827 loans
- Jobs supported
- 827
- 5.6 per loan
- Lender concentration
- 24%
- top lender's share
Borrower mix: 73% went to startups / new businesses, 27% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Top lenders financing The Halal Guys franchisees
Showing 3 of 14 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for The Halal Guys from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 7.63%
- Lender concentration
- 23.8%
- Job velocity
- 5.6 per $100K
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 827
Top SBA lendersTop lender holds 24% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | CRF Small Business Loan Company, LLC | 5 | $2.8M | 0.0% |
| 2 | First National Bank of Omaha | 3 | $1.2M | 0.0% |
| 3 | PNC Bank, National Association | 2 | $1.1M | N/A |
| 4 | The Huntington National Bank | 1 | $300K | N/A |
| 5 | Wilmington Savings Fund Society FSB | 1 | $423K | N/A |
| 6 | Truist Bank | 1 | $150K | 0.0% |
| 7 | TD Bank, National Association | 1 | $50K | 0.0% |
| 8 | First National Bank of Pennsylvania | 1 | $536K | N/A |
| 9 | Citizens Bank | 1 | $673K | N/A |
| 10 | Royal Business Bank | 1 | $1.2M | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 6 | 0 | 0.0% |
| TXTexas | 6 | 0 | 0.0% |
| PAPennsylvania | 3 | 0 | 0.0% |
| VAVirginia | 2 | 0 | 0.0% |
| ILIllinois | 1 | 0 | -- |
| NCNorth Carolina | 1 | 0 | -- |
| NVNevada | 1 | 0 | -- |
| SCSouth Carolina | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Three litigation matters for an 85-unit system: one settled fraud suit (no franchisor payment), an ongoing FLSA/NYLL wage-and-hour putative class action largely pushed to arbitration, and a third. Positive net worth $238K, $12.3M revenue, $1.13M net income, audited. Concerns: no Item 19 disclosure and a wage class action, plus -9.1% net growth.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Two cases disclosed: (1) Dream Big Holdings LLC v. The Halal Guys Franchise Inc. et al. (N.J. Superior Court, Case No. BER-L-001062-22) - franchisee dispute over refused franchise agreement and alleged misrepresentations, settled and dismissed with prejudice on April 22, 2024; (2) Ahmed Hegazy et al. v. The Halal Guys, Inc. et al. (U.S. District Court, S.D.N.Y., 1:22-cv-01880) - ongoing collective action alleging FLSA, NYLL, and WTPA violations regarding overtime, spread of hours pay, uniform reimbursement, tip deductions, and wage notices; conditional certification motion pending with multiple plaintiffs.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 56 / 100 verdict
- 01MINOR3 matters incl. ongoing FLSA/NYLL wage class action (mostly arbitrated)
- 02MINORNo Item 19 disclosure
- 03MINOR-9.1% net growth
- 04MINORPositive equity $238K, $12.3M revenue, net income $1.13M
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 0.3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 8 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 3 |
View Item 3 litigation summary
Two cases disclosed: (1) Dream Big Holdings LLC v. The Halal Guys Franchise Inc. et al. (N.J. Superior Court, Case No. BER-L-001062-22) - franchisee dispute over refused franchise agreement and alleged misrepresentations, settled and dismissed with prejudice on April 22, 2024; (2) Ahmed Hegazy et al. v. The Halal Guys, Inc. et al. (U.S. District Court, S.D.N.Y., 1:22-cv-01880) - ongoing collective action alleging FLSA, NYLL, and WTPA violations regarding overtime, spread of hours pay, uniform reimbursement, tip deductions, and wage notices; conditional certification motion pending with multiple plaintiffs.
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 134 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
- Site selection
- joint
- Franchisor financing
- Offered
- Item 10
- POS system
- Revel
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel
Item 20 · call current owners
Franchisee Contacts
54 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Halal Guys franchise?
The total investment to open a The Halal Guys franchise ranges from $418K – $1.3M, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Halal Guys franchise owners earn?
The Halal Guys makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns The Halal Guys?
The Halal Guys is franchised by The Halal Guys Franchise Inc.. The ultimate parent named in the FDD is The Halal Guys, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the The Halal Guys FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the The Halal Guys FDD and qualifies whose outlets they describe.
What is The Halal Guys's franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Halal Guys (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 The Halal Guys franchise locations are there?
As of their most recent FDD filing, The Halal Guys has 85 total units in the United States, including 80 franchised units and 5 company-owned units. 4 new units were opened in the latest reporting year.
Is The Halal Guys a good franchise to buy?
FranchiseVerdict rates The Halal Guys as a B-grade franchise with a verdict score of 56 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.