The Halal Guys
The Halal Guys offers quick-service restaurants specializing in signature meats and sauces over rice, popular American Halal food items, dine-in, and take-out. Known for its halal cuisine, it operates in the fast-casual dining sector.
About The Halal Guys
The Halal Guys is an American fast-casual restaurant franchise that originated as a halal cart in Manhattan, New York City.
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The Halal Guys franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment necessary to begin operation of a single The Halal Guys restaurant ranges from $417,600 to $1,310,250, including $62,000 to $64,250 that must be paid to the franchisor and/or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee is $45,000 for purchasing a The Halal Guys franchise [p.14, p.117]. This fee is not refundable under any circumstances [p.14]. For those signing a Multi-Unit Development Agreement with the standard current initial franchise fee of $60,000, the initial franchise fee remains at $60,000 regardless of the lower fees offered to new single-unit franchisees [p.15].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is six percent (6%) of the Restaurant's prior week's Gross Sales, payable each week by electronic funds transfer on or before Monday of each week. Additionally, you must spend at least one percent (1%) of Gross Sales each month on Local Advertising in your Designated Territory.
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit a transfer of ownership of a franchise except for good cause [p.5]. Additionally, when selling or assigning the franchise, the total sales price must not be excessive in a way that jeopardizes the economic viability and future operations of the Franchised Business and/or transferee [p.161]. This means the sale should not unduly harm the business's financial health or the new owner's ability to operate it successfully.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts. The provided pages detail termination rights for the franchisee but do not specify the grounds for termination by the franchisor.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or competitive brands controlled by them. The Franchise Agreement provides a Designated Territory around your specific location, but this is not an assurance of sufficient sites within that area to meet your development schedule. Additionally, the company reserves the right to adjust trade areas for your benefit or to resolve conflicts with other operators [p.51, p.49, p.52].
What training and ongoing support does the franchisor provide?
The franchisor provides initial ServSafe certification training for designated employees [p.46], along with ongoing refresher training and other operational training programs as needed [p.46]. These training programs can be conducted in-person or virtually, and may include electronic means such as web-based tutorials or video streaming [p.46, p.123]. The franchisor also reserves the right to charge for these programs up to $1,000 per person [p.46]. Additionally, the franchisor offers proprietary software that franchisees may be required to use and pay a license fee for if developed in the future [p.35].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not provide representations about a franchisee's future financial performance or past performance of company-owned or franchised outlets. The franchisor also prohibits its employees, representatives, and others from making such representations [p.67]. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that specific outlet [p.67]. Additionally, the franchisor does not share any information concerning actual, average, projected or forecasted franchise sales, profits or earnings other than what is contained in the Disclosure Document [p.252, p.355].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the menu items and other products and services that the franchisor has expressly approved in writing [p.58]. You must also adhere to the standards and specifications set by the franchisor without deviation unless written consent is obtained first. For supplies, you may have to buy or lease certain items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.3]. This isn't specified in the excerpts for all types of supplies and products beyond those required by the franchisor.