The Halal Guys
Bottom line
- Total investment $418K – $1.3M including a $45K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 30 loans (below the industry average).
- System 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
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 The Halal Guys unit return on the cash you put in?
Unlevered ROIC · per unit
12%
Below typical band (30–60%)
Overview
About
Franchisees operate fast-casual halal food restaurants serving chicken, lamb, and gyro platters with rice and salad in high-traffic urban locations. Day-to-day operations include food prep, counter service, customer management, inventory control, and staff oversight in a quick-service model. The brand emphasizes street-food authenticity with limited seating and high volume throughput.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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
The Halal Guys presents HIGH RISK due to shrinking franchise system (9.1% YoY decline), undisclosed financial performance, ongoing wage violation litigation, and going concern issues masking true profitability.
Score breakdown · what drove the 63 / 100 rating
- 01MEDUnit count declined 9.1% YoY (85 units) indicating system contraction and potential franchisee struggles
- 02MEDNo Item 19 financial disclosure (avg revenue/net income not disclosed) prevents assessment of actual profit potential
- 03HIGHMultiple active/recent litigation including ongoing class-action FLSA wage violation lawsuit creating liability exposure
- 04MEDHigh initial investment range ($417K-$1.3M) combined with 6% royalty creates significant cost burden on undisclosed margins
- 05HIGHGoing Concern = False suggests franchisor may have reported going concern warnings in financial statements
- 06HIGHFraud/breach of contract claims in settled disputes indicate governance and franchisee relations issues
- 07HIGHDeclining unit count + litigation + no financial transparency = inability to validate ROI
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
36 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Halal Guys · FDD (2025) PDF