The Halal Guys Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Number of franchisees

?

88
+
14%
14%
Investment required

?

$542,000 - $1,459,000
Revenue (AUV)

?

$1,436,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$60,000
Royalty fees

?

6.00%
+
3.50%
Operating Profit

?

n.a.

Pro
Franchisees

?

88
+
14%
14%
Investment required

?

$542,000 - $1,459,000
Franchise fee

?

$60,000
Royalty fees

?

6.00%
+
3.50%
Revenue (AUV)

?

$1,436,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

n.a.

Pro

The Halal Guys: Revolutionizing Halal Street Food into a Global Phenomenon

The Halal Guys began their journey as a modest hot dog cart in New York City in 1990, established by three Egyptian immigrants with the goal of providing authentic Halal food to Muslim taxi drivers. Their offerings, which included chicken and gyro platters over rice, falafel sandwiches, and distinctive sauces, quickly garnered a wide following. 

This led to a diverse customer base far beyond the Muslim community, as people across the city flocked to their carts. The constant long lines at any hour signified the strong demand for their food and set the stage for their eventual expansion​​.In 2014, The Halal Guys ventured into franchising, transforming their street food success into a global fast-casual restaurant brand.

This move has positioned The Halal Guys as the largest American Halal food concept worldwide, with numerous locations both domestically and internationally. Their headquarters in Astoria, New York, coordinates franchising operations and provides support to their global franchise network​​.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount (Low) Amount (High)
Initial Franchise Fee $60,000 $60,000
Site Selection Report $425 $425
Leasehold Improvements, Construction Cost $150,000 $500,000
Licenses and Permits $1,000 $25,000
Rent – 3 months $9,000 $60,000
Security Deposits $5,000 $50,000
Blueprints $5,000 $25,000
Equipment, Furnishings & Fixtures $220,000 $315,000
Signage $5,000 $20,000
Drive-Thru Window $0 $150,000
Computer System $5,000 $20,000
Travel & Living Expenses While Training $10,000 $25,000
On-Site Opening Assistance $17,000 $17,000
Insurance – 3 Months $600 $15,000
Professional Fees $2,000 $10,000
Grand Opening Advertising $17,000 $17,000
Opening Inventory and Supplies $10,000 $50,000
Delayed Opening Fee See Note 15 See Note 15
Additional Funds – 3 Months $25,000 $100,000
Total $542,025 $1,459,425

Franchise Disclosure Document

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Training 

The Halal Guys franchise offers a comprehensive training program that includes crucial preopening activities necessary for setting up the franchise unit. This encompasses site selection and other preparatory steps that establish the groundwork for the franchise's operations.

Initial Training Program

The franchise provides a structured Initial Training Program for key personnel, including the Multi-Unit Operations Director, General Manager, Assistant General Managers, and a cook. Franchise owners may also attend if required by the franchisor. This training, conducted at the franchisor's headquarters and affiliate restaurants, covers essential operational procedures.

Training for Additional Restaurants

When opening additional restaurants, franchisees have the option to bypass the Initial Training Program, provided the new restaurant's staff is trained by those certified from the initial program. This approach maintains brand consistency across all units.

Field Support Services

After opening, The Halal Guys franchise offers field support services to franchisees through on-site visits or remote communication, ensuring continued operational success.

On-Site Training and Assistance

Franchisees can request additional on-site training or assistance based on their needs. This support, subject to availability, may incur additional fees and expenses for the franchisee.

Territory Protection

The Halal Guys franchisor provides franchisees with a Designated Territory based on the restaurant's location. In urban areas, this territory extends to a 1/4 mile radius, while in suburban areas, it covers a 2-mile radius around the restaurant. However, franchisees are restricted from soliciting customers outside their Designated Territory.

Non-Traditional Sites

If the restaurant is located at a Non-Traditional Site, it will not be granted any Designated Territory. Additionally, the franchisor retains the right to adjust the boundaries of the Designated Territory at any time​​.

Territorial Rights and Competition

Franchisees do not receive an exclusive territory and may encounter competition from other franchisees, franchisor-owned outlets, or other distribution channels or competitive brands managed by the franchisor.

Competitors

Franchise
Units
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

94

+
14%
14%
No growth
New

$60,000

$542,000

-

$1,459,000

n.a.

$1,436,000

Pro

n.a.

Pro

n.a.

Pro

Food & Beverage

Number of units

2023
Franchised units

77

86

88

Company-owned units

6

6

6

Total units

83

92

94

Competitors

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$62,000
-
$327,000
Number of franchises
276
+
n.a.
n.a.

Southern Steer Butcher

Investment required
$429,000
-
$723,000
Number of franchises
6
+
200%
200%

Wienerschnitzel

Investment required
$299,000
-
$1,462,000
Number of franchises
243
+
-4%
-4%

Watermill Express

Investment required
$599,000
-
$821,000
Number of franchises
314
+
0%
0%

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