FranchiseVerdict
FV-03012·AVOIDMinimal24FDD 2020

Yalla Mediterranean

Other
Investment
99th pct Other
Avg revenue
50th pct Other
Royalty
Units
99th pct Other
SBA default

Bottom line

  • Total investment —.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated AVOID with a risk score of 98/100.
  • 11 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Yalla Mediterranean Franchising Company, LLC
Parent company
FAT Brands Inc.
Incorporated in
Delaware
HQ
9720 Wilshire Blvd. Suite 500 Beverly Hills CA 90212

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 Yalla Mediterranean unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
Working capital
$
Item 7 didn't break this out — defaulted to ~10% of annual revenue

Unlevered ROIC · per unit

32%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$105K
EBITDA margin
14.0%
Total invested
$325K
Payback
37 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Yalla Mediterranean franchisees operate quick-service Mediterranean/Middle Eastern restaurants serving items like bowls, wraps, and salads. Day-to-day operations include food preparation, inventory management, staff supervision, customer service, and marketing at the unit level, with variable support from a financially-distressed parent company.

CEO
Taylor Wiederhorn
FDD year
2020

Item 7 · what it costs

The Vitals

Total investment
All-in to open one unit
Liquid capital
Cash you must have on hand
Franchise fee
Royalty
n/d
Ad fund
n/d

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

Total units
Opened
Last reporting year
Closed

No multi-year history disclosed and no opening/closing activity in the last reporting year.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

98
Risk · 0-100
AVOID98 / 100

Yalla Mediterranean presents extreme investment risk due to franchisor going concern status, pervasive litigation, financial opacity, and system instability.

Score breakdown · what drove the 98 / 100 rating

  1. 01HIGHGoing concern warning indicates franchisor financial distress and potential inability to support franchisees or continue operations
  2. 02HIGHExtensive litigation history including securities class actions, regulatory settlements (Virginia SCC), and franchise disputes suggests systemic governance and compliance failures
  3. 03MEDNo financial transparency: zero disclosed average unit volumes, net income, or Item 19 financial performance data prevents informed investment analysis
  4. 04MEDUnknown unit count and growth trajectory suggest either concealment of declining franchise system or severely limited track record
  5. 05MINORUnprotected territory creates direct competition risk among franchisees and revenue cannibalization
  6. 06MINORUnknown franchise fee, royalty rate, and contract term indicate opacity in deal structure and potential hidden costs
  7. 07MINORParent company FAT Brands Inc. involvement in franchise disputes raises questions about brand stability and franchisor reliability
  8. 08MINORMediterranean QSR sector is highly competitive with established national players; unclear differentiation or competitive advantage
  9. 09MEDUnknown payment structure and missing FDD Item 19 suggest franchisor may lack audited financials or franchisee success data to disclose

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Litigation count
11

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

3 numbers

Locked
(310) 576-••••
CA
(310) 576-••••
CA
(310) 319-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

Yalla Mediterranean · FDD (2020) PDF

Single-page checkout · instant download · CSV export of contacts available separately above