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General

Industry

Food and Beverage

Category

Fast Casual Restaurant

Works with Franchise Brokers

No

Year of Founding

2014

Fees

Marketing Fee

2%

Royalty Fee

6%

Franchise Fee

$60,000-$60,000

Investment Range

$478K-$1.45M

Location units

Total U.S. Locations

88

U.S. Franchised Units

86

U.S. Corporate Units

2

Headquarters (City)

Flushing

Other

Item 19 - Franchise Financials

No

E-2 Visa Eligibility

No

Started Offering Franchises

2014

Issuance of FDD Data

04/27/2022

Key Indicators

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Franchise Payback Period (Years)

Owner Salary / Compensation

Average Unit Volume (AUV)

Franchise Cost

$478K-$1.45M

Franchise Fee

$60,000-$60,000

What to know about The Halal Guys franchise?

The franchise offered is for a quick-service restaurant operating under the name "The Halal Guys," in which restaurants specialize in the sale of signature meats and sauces over rice as well as other popular American Halal food items for dine-in and take-out. The franchise offered is for a quick-service restaurant operating under the name "The Halal Guys." The Halal Guys restaurants specialize in the sale of signature meats and sauces over rice, as well as other popular American Halal food items, for dine-in and take-out. The franchise was founded by Mohamed Abouelenein, Ahmed Alaska, and Abdelbaset Elsayed in New York City in 1990. All The Halal Guys franchisees are required to purchase and use beef that has been certified as halal by a reliable source. All chicken and lamb used by The Halal Guys must also be certified as halal. In addition, franchisees must use only vegetable oils in all frying and cooking procedures. All franchisees are required to obtain a Halal Certificate for their restaurant from a reliable Islamic organization. The Halal Guys franchisees are responsible for the daily operations of their restaurant, including but not limited to food preparation, cooking, customer service, cleaning, and general upkeep. Franchisees are also responsible for hiring and training employees, as well as managing inventory and finances. The Halal Guys is based in Flushing, NY. Scroll down to learn more!

How much does a The Halal Guys franchise cost?

Are you wondering how much is a The Halal Guys franchise? Before starting a The Halal Guys franchise, it is important to know the franchise fee, working capital and other costs required to start the business. The minimum investment amount required to open a The Halal Guys franchise is $478,000 and can go all the way up to $1,445,400. Keep in mind, you should also allocate additional funds to live off of while the The Halal Guys business ramps up. This can take as little as 6 months to over 2 years depending on the franchise opportunity. You should speak to at least 5 The Halal Guys franchisees to understand the true cost of opening the franchise and how long it takes to: 1) start a The Halal Guys business 2) pass break even 3) hit significant income. After (and if) you pass the point of earning significant income from your The Halal Guys franchise, there may be enough margin to hire a day-to-day manager and work less hours in the business.

Franchise Net Unit Growth

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Download our guide to compare The Halal Guys. Hotels to the Fast Casual Restaurant, Outdoor Food and Beverage industry.

Franchise Data

Year Start of Year Units Opened Units Closed End of Year
2016 2 17 0 19
2017 19 30 1 48
2018 47 21 4 64
2019 64 20 6 78
2020 78 8 9 77
2021 77 11 2 86

Additional Details

How much does a The Halal Guys franchise owner make?

The Halal Guys franchise earnings and revenue can vary significantly from one franchisee to another. The The Halal Guys franchise owner profits can be influenced by labor costs, lease rates, hours worked as well as other factors. The Halal Guys unfortunately does not disclose financials on how much The Halal Guys franchise owners make. This means they do not disclose sales or earnings for franchisees operating in the U.S. Every franchisor is required by law to disclose income statements and balance sheets for how the franchisor is performing but not for the franchisee level. Unfortunately, The Halal Guys does not make it easy to understand franchisee financial performance. This can be seen as a red flag and it is important to be that much more diligent in your conversations with The Halal Guys franchisees. Do note that The Halal Guys is not alone as about 40% of franchises do not disclose franchisee financial performance. At Vetted Biz, we suggest you to speak with 5 to 10 The Halal Guys franchisees to understand how much money they are making from their The Halal Guys business. You should also speak to former The Halal Guys franchisees to understand why they left the system. Did they sell their The Halal Guys at a profit? Were they forced to close their The Halal Guys franchise down because it kept losing money?

What is the The Halal Guys franchise fee?

Owning a The Halal Guys franchise requires 6% royalty fee and 2% marketing fee. These two expenses represent the main ongoing costs you can expect to pay the franchisor throughout the franchise relationship. There may be other ongoing fees disclosed in the The Halal Guys Franchise Disclosure Document Keep in mind, there is also an initial The Halal Guys franchise fee of $60,000 that is included in the initial investment amount of $478,000 to $1,445,400. Depending on the franchise agreement you sign, you might have to pay the full franchise fee again if you decide to extend the The Halal Guys franchise relationship. Consult with a licensed franchise attorney to understand exactly what you receive for paying the The Halal Guys franchise fee of $60,000. Visit the The Halal Guys metrics tab to explore the financials for this business, royalty and marketing fees compare to other Food and Beverage franchises. You can also compare these fees for 2,000+ franchises currently offered in the U.S.

When was The Halal Guys founded?

The Halal Guys started offering franchises in 2014. The Halal Guys was founded 8 years ago in 2014. At Vetted Biz, we recommend franchises have 3-5 corporate locations and 5+ years of experience before offering a franchise. There needs to be proof that the business model works and is replicable before offering the franchise to other!

How many The Halal Guys locations are in the U.S.?

As of 2022, there were 86 locations across the U.S. There are also 2 corporate locations. Most Food and Beverage franchises like The Halal Guys have more franchised locations than corporate locations.

How many The Halal Guys franchises opened over the past few years?

Over the prior 3 years we have data for, The Halal Guys has opened 39 outlets throughout the U.S. Visit the The Halal Guys metrics tab to explore how the openings compare to other Food and Beverage franchises.

How many The Halal Guys franchises closed over the past few years?

Over the prior 3 years we have data for, The Halal Guys has closed 17 outlets throughout the U.S Visit the The Halal Guys metrics tab to explore how the openings compare to other Food and Beverage franchises.

Is The Halal Guys growing? Are they opening more locations than they are closing?

The net unit growth rate for The Halal Guys over the past 3 years is 34%. Over the last year we have data for, The Halal Guys had a net unit growth rate of 12%. Without a comparison, this number doesn’t mean much. Compare how the The Halal Guys growth rate compares to 2,000+ other franchises and Industry franchises like The Halal Guys. More info in the The Halal Guys metrics tab.

Is The Halal Guys franchise eligible for an SBA Loan?

The Halal Guys is eligible for SBA loans including the 7(a) loan. To find out more about the SBA loan program for franchising click here. The Halal Guys franchise was assigned the SBA Franchise ID of S1761 on 10/01/2017. This DOES NOT mean the SBA endorses this franchise. The SBA Franchise Directory will only include business models like The Halal Guys that are reviewed and found eligible under SBA’s affiliation rules and other eligibility criteria. Currently, there are over 7,000 franchise opportunities that the SBA has deemed eligible for SBA financing.

Is The Halal Guys a franchise in the United States?

According to the SBA, The Halal Guys meets the Federal Trade Commission (FTC) definition of a franchise. The FTC Franchise Rule requires franchisors to provide all potential franchisees with a disclosure document (FDD) containing 23 items about the franchise, its officers, and other franchisees. Be sure that The Halal Guys provides you with an FDD if you are in discussion to buy a The Halal Guys.

What is the The Halal Guys Franchise for Sale Rate?

The The Halal Guys systemwide health and franchisee satisfaction can be measured by the The Halal Guysfranchise for sale rate. The franchise for sale rate is calculated by the percentage of units transferred to new franchisees and reacquired by franchisor. The Halal Guys franchise for sale rate over the past 3 years is 7%. Over the last year we have data for, The Halal Guys had a franchise for sale rate of 0%. Without a comparison, this number doesn’t mean much. Compare how the The Halal Guys franchise for sale rate compares to 2,000+ other franchises and Industry franchises like The Halal Guys. More info in the The Halal Guys metrics tab.

What is the The Halal Guys Franchise Failure Rate?

The Halal Guys franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons. The failure rate is one of the most important franchise metrics to consider when investing in a franchise! The Halal Guys failure rate over the past 3 years is 20%. Over the last year we have data for, The Halal Guys had a franchise failure rate of 2%. Without a comparison, this number doesn’t mean much. Compare how the The Halal Guys franchise for sale rate compares to 2,000+ other franchises and Industry franchises like The Halal Guys. More info in the The Halal Guys metrics tab.

How can I find out more details on The Halal Guys franchise?

Visit the The Halal Guys metrics tab to explore franchise profitability, industry comparables and more. Become a Vetted Member today today for exclusive access on this franchise opportunity!

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Investment Midpoint

The average of the low and high range of the investment amounts calculated from the most recently available Franchise Disclosure Document

The Halal Guys

$961,700

Industry median

All franchises median

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Royalty Fee

The median royalty fee from the Franchise Disclosure Document

The Halal Guys

6%

Industry median

All franchises median

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Franchise Fee Midpoint

Payment that the franchisee must pay to the franchise owner in order to start a franchise.

The Halal Guys

$60,000

Industry median

All franchises median

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Item 19 – Financial Performance Representations

Historical financial performance representations

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Franchise Financials

Franchisor company financial information and financial performance representations, if disclosed by the franchisor.

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General

Industry

Food and Beverage

Category

Fast Casual Restaurant

Works with Franchise Brokers

No

Year of Founding

2014

Fees

Marketing Fee

2%

Royalty Fee

6%

Franchise Fee

$60,000-$60,000

Investment Range

$478K-$1.45M

Location units

Total U.S. Locations

88

U.S. Franchised Units

86

U.S. Corporate Units

2

Headquarters (City)

Flushing

Other

Item 19 - Franchise Financials

No

E-2 Visa Eligibility

No

Started Offering Franchises

2014

Issuance of FDD Data

04/27/2022
Detailed Franchise metrics for The Halal Guys Detailed Franchise Metrics are metrics calculated and reviewed by Vetted Biz. You can find the available metrics for The Halal Guys below. “N/A" or Not Applicable results mean that there is not enough data available to compute a precise rate or that the result is not mathematically computable. When results are not mathematically computable, you should pay attention to the absolute values (#) instead of the percentage rate itself.

Growth Rate

The percentage change of total franchise units from one year to the next by franchisor.

 

1 year

3 years

The Halal Guys

-1%

34%

Industry median

All franchises median

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Franchise for Sale Rate

The percentage of units transferred to new franchisees and reacquired by franchisor.

 

1 year

3 years

The Halal Guys

N/A

7%

Industry median

All franchises median

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Net Unit Growth (most recent year)

Net Unit Growth (3 years)

Failure Rate

Franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons.

 

1 year

3 years

The Halal Guys

N/A

20%

Industry median

All franchises median

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Business details

Website

https://thehalalguys.com

Business email

i***@thehalalguysny.com

Mailing address

26-44 Borough Place

State headquarters

New York

Contact Name

The Halal Guys

Phone

+1 (000) 0********00

City

Flushing

Zip code

11377
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