The Halal Guys Franchise Cost, Revenue & Review 2026
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]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 24 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $418K – $1.3M
- 68th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 85
- 75th pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · 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.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict A (Strongest tier), verdict score 71/100 (higher is better). SBA loan charge-off rate of 0.0% across 24 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- 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.
- 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
- $13.1M
- 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 31% 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
- Bottom third — review 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%
- 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 |
| 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 did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one The Halal Guys unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
11%
Below the 30–60% attractive-franchise band
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
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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 average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How The Halal Guys Compares
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
- 0.0%
- 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
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 2
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 7
- 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
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 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%
- brand beats franchise avg ↓
- 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.
Premium insight
SBA Lending Report
Deep-dive into The Halal Guys's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 8 states
- Startup risk premium and job creation velocity
- 8-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 24 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
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)
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 71 / 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 | Radius |
| 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
- 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
FDD download
The Halal Guys · FDD (2025) PDF
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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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?
Based on SBA 7(a) loan data, The Halal Guys has a charge-off rate of 0.0% across 24 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
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 A-grade franchise with a verdict score of 71 out of 100 (higher is better), 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
Are you the franchisor?
If you represent The Halal Guys, you can request corrections or provide updated information.
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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.