The Halal Guys Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$417,600 - $1,310,250
Franchise Fee
$45,000
Min Cash Required
$62,500
Total US Locations
85
Business Summary
The Halal Guys franchise offers quick-service restaurants specializing in American Halal food items, including signature meats and sauces over rice, for dine-in and take-out. These restaurants are typically located in high-traffic areas such as strip malls, lifestyle centers, and free-standing buildings. The Halal Guys system includes distinctive design, recipes, operational standards, training, and marketing to ensure quality and uniformity across its locations.
Corporate History
The Halal Guys Franchise Inc. was formed as a New Jersey corporation on May 14, 2014. The company's affiliates own and operate businesses of the same type, including food carts in New York City. The Halal Guys began offering franchises in June 2014, making use of a proprietary system for quick-service restaurants specializing in American Halal food. The Halal Guys, Inc., an affiliate, owns the Proprietary Marks which are sublicensed to franchisees.
Financial Overview
Investment Range
$417,600 - $1,310,250
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$60,000
Minimum Cash Required
$62,500
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$255,000
Equipment Costs (High)
$925,000
Working Capital
$62,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Halal Guys' audited financial statements for the year ended December 31, 2024, show total revenues of $12,350,720 and a net income of $1,127,700, which is a decrease from $13,823,498 in total revenues and $517,749 in net income in 2023. The company had cash and restricted cash of $2,272,923 at the end of 2024, down from $3,722,513 in 2023. The accumulated deficit increased from $(371,445) in 2023 to $(1,081,785) in 2024, partly due to stockholders' distributions of $1,838,040 in 2024. The independent auditor provided an unqualified opinion, indicating the financial statements present fairly, in all material respects, the financial position and results of operations. There were no substantial doubts about The Halal Guys' ability to continue as a going concern.
Financing Details
The Halal Guys does not offer any direct or indirect financing arrangements to franchisees. It also does not guarantee franchisees' notes, leases, or other obligations. Franchisees are responsible for securing their own financing from third parties.
Performance Metrics
Total US Locations
85
Franchised Units
80
Corporate Units
5
Avg Square Footage
1,750
Franchising Since
2014
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
The Halal Guys has been involved in three litigation cases since 2022. One case, Dream Big Holdings LLC v. The Halal Guys Franchise Inc. (filed February 2022), involved allegations of refusal to issue a franchise agreement and misrepresentations. While some initial claims were dismissed, it was ultimately settled in April 2024, with The Halal Guys acquiring the claimant's restaurant for a nominal fee and neither party paying monetary consideration. Another case, Ahmed Hegazy et al. v. The Halal Guys, Inc. et al. (filed March 2022), is an ongoing federal lawsuit alleging violations of labor laws regarding overtime, uniforms, and wage notices. The Halal Guys maintains that these claims are without merit. Most recently, Arizona Ally LLC v. The Halal Guys Franchise Inc. (filed October 2023) was an arbitration demand related to the termination of a franchise agreement. This matter was settled in March 2024, with The Halal Guys acquiring the former franchisee's restaurant and the claimant agreeing to post-termination obligations.
Bankruptcy History
The Halal Guys has no bankruptcy information to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, The Halal Guys franchisees must give written notice between six and nine months before the initial term expires. They must be in full compliance with the franchise agreement and all other agreements, and all monetary obligations to The Halal Guys and its affiliates must be current. Franchisees need to renovate and upgrade their restaurant to meet current brand standards, complete any required training, and pay a $22,500 renewal fee. They must also be able to renew their lease or secure an approved substitute location and sign a general release of claims against The Halal Guys. The renewed agreement may have materially different terms, but the designated territory boundaries, renewal rights, and royalty fee will remain consistent with the first agreement.
Training & Support Program
Franchisor Assistance
Before a restaurant opens, The Halal Guys may assist with site selection and provide prototype architectural and design plans. Franchisees receive a confidential operations manual and a list of approved suppliers and specifications for items like furniture and equipment. The Halal Guys provides an initial 4-week training program for key personnel and up to 5 days of on-site pre-opening assistance for the first restaurant. During operation, The Halal Guys conducts visits and evaluations to maintain quality standards, reviews annual advertising plans, provides advice and written updates on managing the restaurant, and offers ongoing training programs and seminars. Additional on-site training can be requested or required, for which franchisees pay a fee. The Halal Guys also administers a Worldwide Creative Marketing Fund.
Initial Training Hours
184
Training Location
The Halal Guys training offices in Garden City, NY, or affiliate restaurants in Tempe, AZ and Washington D.C., or other designated locations. Training may also be conducted virtually.
Ongoing Support
After opening, The Halal Guys provides ongoing support through various channels. This includes visits and evaluations of the restaurant to ensure quality, review of annual advertising plans, and advice through written materials and updates to the operations manual. Franchisees and designated personnel are required to attend additional or refresher training programs, seminars, and meetings as determined by The Halal Guys. Field support services are offered through on-site visits, telephonic, electronic, or other communication modes, and franchisees can contact headquarters for consultation. The Halal Guys also administers a Worldwide Creative Marketing Fund for advertising and promotion, and franchisees must participate in customer loyalty, gift card, and online ordering programs.
Franchise Requirements
Ideal Candidate Profile
The Halal Guys requires one of the franchisee's owners to personally supervise and actively participate in the day-to-day operation of the restaurant, devoting their full time and best efforts. Franchisees must also designate and retain a General Manager and three Assistant General Managers who meet The Halal Guys' educational, managerial, and business standards, are individually acceptable, and successfully complete the initial training program. Owners can serve as General Managers if they have at least three years of previous restaurant management or ownership experience. For multi-unit operators, a designated Multi-Unit Operations Director is required to oversee all franchised restaurants and serve as the main daily contact.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
limited
Staff Count
5
Territory Size Requirements
The Halal Guys designates territories based on location. For restaurants in an urban setting, the territory will be a 1/4-mile radius around the restaurant. For suburban settings, the territory will be a 2-mile radius around the restaurant.
Staffing Notes
Each The Halal Guys restaurant requires a minimum staff of one General Manager, three Assistant General Managers, and one cook. Additionally, one of the owners must personally supervise and participate in the day-to-day operations. The General Manager and Assistant General Managers must meet The Halal Guys' educational, managerial, and business standards, be individually acceptable, and successfully complete the initial training program. Certified Managers are responsible for training other employees on all restaurant stations. Multi-Unit Operators must also employ a Multi-Unit Operations Director to oversee their franchised restaurants. Franchisees are solely responsible for all employment-related decisions, including hiring, firing, scheduling, and setting compensation for their employees, and for maintaining a competent, conscientious, and trained staff sufficient to efficiently service customers.