Naf Naf
Naf Naf offers Middle Eastern cuisine including shawarma and falafel through franchised restaurants. Known for authentic flavors, it operates in the quick-service restaurant sector.
Naf Naf franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a new NAF NAF® Middle Eastern Grill ranges from $501,000 to $818,700 (excluding real estate costs), which includes a payment of $30,000 to $40,000 to the franchisor or affiliate. This amount does not reflect potential real estate purchase costs or construction expenses for a suitable building. [p.1]
What is the initial franchise fee?
The initial franchise fee is $30,000 and it is not refundable under any circumstances [p.11, p.24, p.86, p.104].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of the Restaurant's Net Sales, paid on or before the Wednesday following each two-calendar-week period [p.104]. The Company may charge up-front and ongoing fees for proprietary software or technology, but specific details are not provided in these excerpts [p.42]. Advertising and marketing efforts are funded by the Brand Fund, with control over all creative and business aspects, though you may receive sample Marketing Materials at no cost and purchase additional copies [p.37].
How long is the initial franchise agreement, and can I renew it?
The initial term of the License Agreement (which governs your use of Naf-Naf Holdings' Marks) is 20 years [p.51]. You have the right to renew this License Agreement for three successive 10-year terms under certain conditions, but you can be terminated by Naf-Naf Holdings if you breach the agreement and fail to cure the breach within 30 days of receiving written notice [p.51].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your franchise rights, but it requires obtaining a true and complete copy of a bona fide, executed written offer from a responsible and fully-disclosed buyer. This offer must include details of the proposed sale's payment terms, financing sources and terms of the purchase price, with an earnest money deposit of at least 5% of the proposed purchase price [p.138]. Good cause is required for the franchisor to refuse such a transfer [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement if there is a failure by the franchisee to comply with lawful provisions of the franchise agreement and the franchisee fails to cure such failure within 30 days after receiving written notice [p.5]. Additionally, termination without reasonable cause is generally unlawful under Virginia law [p.202].
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as an Approved Franchisee, you need a minimum net worth of $1,800,000, calculated as the excess of your total assets (excluding goodwill and intangibles) over your total liabilities, with at least $600,000 being cash or cash equivalents. This is specified on [p.172].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, company-owned outlets, and other channels of distribution or competitive brands controlled by the franchisor [p.46, p.49]. However, your territorial rights are protected against NAF NAF Restaurants having physical locations within the Territory as specified [p.49].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training at their designated location or through video and other electronic means. This initial training lasts about 4 weeks and covers operating a NAF NAF Restaurant, including philosophy and Brand Standards, but excludes labor relations and employment practices [p.43, p.107]. For ongoing support, the franchisor sends an 'opening team' for up to 7 days to assist with opening preparations and training employees on brand standards [p.44]. Additionally, they may offer supplemental and ongoing training upon request, though this comes at a cost of $500 to $1,000 per trainer per day plus expenses if conducted locally [p.45].
How many franchised outlets are there, and how many have closed or been terminated?
As of the fiscal year end on December 29, 2024, there were sixteen franchised NAF NAF Restaurants in operation. During the last fiscal year, one franchisee had their agreement terminated, canceled, or not renewed [p.74].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information for its franchised and/or franchisor-owned outlets if there is a reasonable basis for the information, but they do not make any financial performance representations except for the one provided in Item 19 of their disclosure document. This representation is based on restaurant-specific reports and other information from affiliates and franchisees that the franchisor believes to be reliable, though it has not been audited by a certified public accountant [p.62, p.69].
What am I restricted to selling, and where must I buy supplies?
You are required to sell products that meet the brand standards as detailed in the Operations Manual and other technical manuals. According to [p.26], you must buy or lease all Operating Assets and other products and services for the Restaurant only according to the Brand Standards, and if required, from suppliers designated or approved by the franchisor (which may include the franchisor, certain of its affiliates, and/or other restricted sources). This includes food, paper products, operating supplies, computer/point-of-sale system, printed marketing/advertising materials, gift card/loyalty program services, Restaurant build out items, and music services.