How Much Does a Shah’s Halal Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$192K – $410K
Franchise Fee
$30K
Royalty
5.0%
Ad Fund
1.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Shah’s Halal is $30K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Shah’s Halal franchise requires a total investment of $192K – $410K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $10K to $30K.
Ongoing Costs
Beyond the initial investment, Shah’s Halal franchisees pay ongoing fees. The royalty fee is 5.0% of gross sales. The advertising or brand fund contribution is 1.0% of gross sales.
Net Worth & Liquid Capital Requirements
Shah’s Halal requires working capital of $10K – $30K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to Shah’s Halal's Item 19 financial performance representation:
Median gross sales: $1.2M
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View Shah’s Halal?
SBA Loans Issued
4
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Shah’s Halal has 4 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
Talk to current Shah’s Halal franchise owners
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