QSR Landscape

Quick-service franchise brands, ranked by what they cost to run.

The Halal Guys franchise

The Halal Guys: $461,400–$1,333,500 total investment, $60,000 franchise fee, 9% total ongoing fee. Read out of the filings.

Compiled from public filings and operator sites

9% Total ongoing fee
$461,400–$1,333,500 Total investment
93 Units, 2024
1990 Founded
2014 Franchising since
NY Astoria
— Typical size, sq ft
No Item 19

Fees

Initial franchise fee $60,000
Royalty 6%
Brand fund 2%
Local advertising 1%
Total ongoing 9% of gross sales
Grand opening $17,000
Transfer fee $10,000
Renewal fee $5,000

Opening one

Total investment $461,400–$1,333,500
Training 24 hours classroom, 136 on the job
Territory Quarter-mile to two-mile radius, set by area
Initial term 10 years
Renewal One ten-year option

The system

Format New York platter cart turned QSR
Headquarters Astoria, NY
Founded 1990
Franchising since 2014
Item 20 93 as of 2024, of which 88 franchised and 5 company-owned. Filing snapshot, not tonight's locator.
Item 19 No financial performance representation.

The franchisor's own accounts

Audited entity The Halal Guys Franchise, Inc.
Fiscal year end 31 December
Auditor's opinion Unmodified
Total stockholders' equity at 31 December 2023 $948,582
Net income for each fiscal year in the statements attached to FDD issued 29 April 2024. A figure in parentheses is a loss, which is how the statements themselves print it.
FY2021 $3,488,644
FY2022 $2,574,574
FY2023 $517,749
Total over 3 years $6,580,967

Profitable in all three years and the direction is the story: net income fell from $3,488,644 to $517,749, an 85% decline over two years, while the balance sheet stayed positive. The company also carries an accumulated deficit that is shrinking rather than growing — $(3,693,003) at the start of 2021 against $(371,445) at the end of 2023 — which is what retained profits working off an old hole looks like, and why a deficit line on its own says very little.

From cart identity to restaurant system

The Halal Guys began as a Manhattan food-cart business in 1990 and started franchising in 2014. Headquarters is in Astoria, New York. The May 2024 comparative study of published FDDs behind this row records 93 outlets as of 2024: 88 franchised and five company-owned.

The food is chicken, beef gyro and falafel served primarily in platters and wraps, not German döner in toasted pide. The operator’s franchise page still presents the cart-origin menu as the center of the system. It belongs in this directory as an adjacent halal fast-casual benchmark, not as another name for the same sandwich.

The Halal Guys franchise storefront in a suburban Virginia shopping plaza
The Springfield Plaza franchise occupies a conventional inline retail bay, showing how the cart-origin brand translates into a suburban storefront with a full customer entrance and dining-room frontage. Photograph by Ser Amantio di Nicolao, CC BY-SA 3.0, via Wikimedia Commons; web-optimized derivative shared under the same license.

Certification and disclosure answer different questions

The company publishes halal certification documents for chicken and beef gyro. Those documents support product-specific certification claims. They do not establish franchise economics, and the FDD does not determine religious compliance; each source has its own job.

Fee stack, Item 7 and Item 19

The comparable fee stack is 9%: 6% royalty, 2% brand fund and 1% local advertising. The initial franchise fee is $60,000, the highest flat fee among live rows that state one. Item 7 runs from $461,400 to $1,333,500. The width of that range deserves format- and site-specific explanation before the low end is treated as a budget. Typical square footage is not in the source. Grand opening is $17,000.

The source records no Item 19 financial performance representation. Scale does not create one. Training is 24 classroom hours and 136 on the job. The initial term is ten years with one ten-year renewal. Renewal fee $5,000; transfer fee $10,000. Territory ranges from a quarter-mile to two miles, depending on the area.

The operator now makes later growth claims on its franchise page, but the directory leaves 93 as the dated 2024 count rather than mixing current marketing with the older study. That separation is especially important for a widely recognized brand: present visibility is not a substitute for the source year or a missing Item 19.

Twenty-four years before the first franchise

The gap between the 1990 cart and the 2014 start of franchising is the longest pre-franchise interval here, and it is the most useful single fact on the row. The brand spent more than two decades as an operating business before it sold an agreement, which means the franchise system is a decade old while the brand is well over thirty. Those are different ages and a buyer should carry both. Consumer recognition was built in the first period; what a franchisee actually buys was built in the second.

The 2024 count of 93 outlets, 88 franchised and five company-owned, is what the second period produced. Ninety-three units across roughly ten years of franchising is steady rather than rapid growth, and five remaining company stores are a thin base beside the franchised one, so the franchisor’s own current operating experience is limited relative to its operators’. The reason to rebuild Item 20 from the current document rather than from this row is that a system of that scale and age should by now show a real transfer and closure history — and transfers and closures are where a ten-year franchise record becomes legible.

A $60,000 fee with no Item 19 behind it

The initial franchise fee is $60,000, the highest flat fee among the live rows here, and the source records no financial performance representation. Those two facts sit awkwardly together and are better raised directly than resolved by inference. A franchisor is under no obligation to make an Item 19, and declining is neither improper nor evidence about results. It does mean a buyer paying the highest entry fee in this comparison set has no disclosed performance data from the franchisor to weigh against it.

What fills that space is not brand recognition and not the franchise page. It is the Item 20 lists, current and former, and the questions that go with them. Ninety-three outlets is a large enough population to sample across geography, opening year and site type, and with 88 franchised units the former-franchisee list is the more informative half. The ongoing 9% — 6% royalty, 2% brand fund, 1% local advertising — is a separate question from the entry fee, and neither figure indicates what a unit produces.

A wide range, a small territory, no line items

Item 7 runs from $461,400 to $1,333,500, and the row carries no square-foot assumption and no line-item table, so that $872,100 spread cannot be separated into construction, equipment and working capital from this source. The territory language supplies a partial explanation rather than a resolution: a grant running from a quarter-mile radius to two miles depending on area implies dense urban sites and suburban ones inside the same programme, and those are not the same buildout. Establishing which end of both the territory and the investment range applies to a specific site is the first piece of work on this brand, and the row cannot do it.

Training is 24 classroom hours and 136 on the job, a store-weighted split for a system whose menu is served in platters and wraps off a line. The term is ten years with one ten-year renewal, the renewal fee is $5,000 and the transfer fee is $10,000 — modest event charges beside the $60,000 entry, which is worth noting to anyone modelling a sale part-way through the term.

Neighbours on the aisle

The Halal Guys was founded in 1990 and has 93 outlets. That is “established” in the consumer sense, and still a documentation gap on performance: no 2024 Item 19 in the source row. Shah’s licensed chicken-and-rice footprint, The Great Greek’s 1,800–2,000-square-foot grill and a German-döner imbiss are different packets. See Halal Guys versus Shah’s and Great Greek versus Halal Guys. Source: May 2024 comparative study of published FDDs; 2024 study.

The take

The Halal Guys is a platter-system benchmark. German döner is a different food, and this source row makes no performance representation. Item 19 makes none in the study. The count is 93 as of 2024, 88 franchised and 5 company. Item 7 is $461,400–$1,333,500 with no typical square footage in the source. The stack is 9% — 6% royalty, 2% brand fund, 1% local. Training is 24 classroom and 136 on the job. Term is ten years with one option. The named halal certificates have a product and date scope separate from the economics.

Figures from May 2024 comparative study of published FDDs · dataset year 2024.