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Shah's Halal
Shah’s Halal Franchising Inc. offers franchises for operating stand-alone fast-casual restaurants specializing in premium Halal-style cuisine, featuring dishes like chicken over rice, lamb over rice, falafel, gyros, salads, and an array of sauces and toppings derived from Afghan family recipes. The business model centers on licensing a proprietary system, including proprietary marks, recipes, and operations compliant with USDA and health regulations, with an initial investment of $207,000 to $410,000. It targets consumers across the United States seeking affordable, high-quality Halal food, emphasizing simple menus, quality ingredients, and community support.
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Franchise Costs
5% royalty + 1% proprietary marketing fund + $500-$1,500 annual POS provider fee
Financial Performance
Item 19 Financial Performance
Data Based On: 50 Shah's Halal-branded restaurants that were open from January 1, 2024 through December 31, 2024 and provided gross sales information via the restaurants' POS system which were not owned, in whole or in part, or managed by Shah's Halal or an affiliate in the U.S.
Extracted Item 19 Section
Avg. Revenue: $1,454,285
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Unlock financial performance dataShah's Halal Franchise Analysis
In the fast-casual niche, Shah's Halal stands out with its Afghan-inspired Halal menu hitting a growing demand for affordable, quality ethnic eats. The 2025 FDD drops hints of robust expansion momentum and Item 19 revenue stats that could reshape your view on food franchising ROI. What separates this brand's numbers from the pack—steady growth or hidden risks?
Item 7 lays out the initial investment from $192,000 to $410,000, covering build-out for stand-alone spots, equipment, and initial inventory—think a nimble fast-casual setup without massive square footage. Franchise fee hits $25,000, followed by 5% royalties plus 1% ad fund and minor POS fees of $500-$1,500 yearly. Item 19 shines here: average gross sales at $1,454,285, median $1,206,027 across units, signaling strong performers even if medians trail averages (top locations pulling weight). One SBA loan on record averaged $349,000, hinting at accessible financing for qualified buyers eyeing under-$500K entry.
System health looks solid—58 franchise locations plus 16 corporate, up 45% from 38 to 55 units between 2023-2024, with 46 projected new openings. Just 1 termination and 2 transfers show low churn, rare in food where competition bites hard. For buyers, this means a scaling brand with real traction since 2005, but watch if that growth sustains amid economic squeezes on casual dining. Numbers point to viable cash flow potential if you nail location and ops.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Shah's Halal Compares
Key Insights
- Lower investment than 91% of Fast Casual franchises
- Higher than average SBA loan default rate in Fast Casual
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Shah's Halal Current | $192K – $410K | $25K | 5.0% | 58 |
| Tropical Smoothie Cafe | $276K – $771K | $35K | 6.0% | 1,650 |
| TROPICAL SMOOTHIE CAFÉ | $300K – $721K | $35K | 6.0% | 1,371 |
| FIREHOUSE SUBS RESTAURANTS (UNIT) | $405K – $1.6M | $20K | 6.0% | 1,249 |
| Zaxby's | $1.4M – $3.8M | $35K | 6.0% | 826 |
| Qdoba | $548K – $1.3M | $40K | 5.0% | 652 |
Fast Casual Average 107 franchises | $529K – $1.2M | $39K | 5.6% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 107 Fast Casual franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for Shah's Halal franchisees (2025 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
1 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
72 franchisee contacts on file from official FDD filings.
72 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a Shah's Halal franchise ranges from $192,000 to $410,000. This includes a franchise fee of $25,000. Ongoing royalty fees are 5.0% of gross sales.
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