The Halal Guys Franchise Costs, Fees & Owner Salary (2023)

The Halal Guys started as a humble hot dog cart in New York City in 1990, founded by three Egyptian immigrants seeking to offer authentic Halal food to Muslim taxi drivers. The brand quickly gained popularity for its delicious platters of chicken and gyro over rice, falafel sandwiches, and unique sauces, expanding its customer base beyond just the Muslim community to a diverse demographic across the city. The long lines at their carts, regardless of the time of day, underscored the high demand for their offerings and laid the groundwork for future expansion​​.

In 2014, The Halal Guys began franchising, leveraging their street food success to open fast-casual restaurant formats across the globe. This expansion has established The Halal Guys as the largest American Halal Food concept in the world, with a significant presence both within the United States and internationally. Their corporate offices are located in Astoria, New York, serving as the hub for their franchising operations and support for the global franchise network​​.

The Halal Guys' journey from a single food cart to an international franchise highlights their commitment to quality food, customer service, and the ability to adapt and grow in the ever-changing food industry landscape.

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Initial Franchise Fee

The initial franchise fee for a single restaurant is $60,000, payable in a lump sum upon signing the Franchise Agreement. For Multi-Unit Development Agreements, a development fee is calculated based on the number of restaurants committed to be developed.

Royalty Fees

Franchisees are required to pay a weekly royalty fee equal to 6% of the previous week's Gross Sales.

Worldwide Creative Marketing Fee

The Halal Guys franchisees are required to pay a "Worldwide Creative Marketing Fee" of two percent (2%) of the Restaurant's Gross Sales weekly​​. Additionally, franchisees must spend at least one percent (1%) of Gross Sales monthly on local advertising​​. Contributions to an advertising cooperative, up to 0.5% of Gross Sales, may count towards this local advertising requirement​​.

Technology Development Fee

An annual technology fee of $5,000 is charged for technology-related support and services.

Transfer Fee

For Multi-Unit Development Agreements, a transfer fee of 50% of the then-current Initial Franchise Fee is charged with the request for consent to transfer.

Renewal Fee

A renewal fee of $5,000 is payable before the renewal of the Franchise Agreement.

Relocation Fee

If a franchisee wishes to relocate their Restaurant, a relocation fee of $10,000 is applicable upon request for relocation.

The Halal Guys franchise's training program encompasses various preopening activities essential for setting up the franchise unit. This includes site selection and other preparatory steps that lay the foundation for the franchise's operation.

Initial Training Program

A structured Initial Training Program is provided to key personnel, including the Multi-Unit Operations Director, General Manager, Assistant General Managers, and a cook. This program may extend to franchise owners if deemed necessary by the franchisor. The training covers essential operational procedures and is conducted at designated locations, including the franchisor's headquarters and affiliate restaurants.

Training for Subsequent Restaurants

For franchisees opening additional restaurants, the Initial Training Program attendance is optional, provided the new restaurant's staff receives adequate training from the initial program's certified trainees. This flexibility ensures continuous brand consistency across multiple units.

Field Support Services

Post-opening, The Halal Guys franchise offers field support services to franchisees, including supervision and assistance delivered through on-site visits or remote communication, ensuring ongoing operational success.

On-Site Training and Assistance

Franchisees have the option to request additional on-site training or assistance. The franchisor may provide this support based on the franchisee's needs, subject to availability, and may include additional fees and expenses for the franchisee.

The Halal Guys franchisor grants franchisees a Designated Territory, which is determined based on the location of the Restaurant. For urban settings, a 1/4 mile radius is granted, and for suburban settings, a 2-mile radius is granted around the Restaurant. However, franchisees are not allowed to solicit customers outside of their Designated Territory.

It's important to note that if the Restaurant is located at a Non-Traditional Site, it will not have any Designated Territory, and the franchisor reserves the right to adjust the boundaries of the Designated Territory at any time​​.

Franchisees will not receive an exclusive territory and may face competition from other franchisees, outlets owned by the franchisor, or other channels of distribution or competitive brands controlled by the franchisor. The Franchise Agreement grants the right to operate a Restaurant at a specific approved location but does not grant territorial rights beyond the geographic radius listed in the Franchise Agreement​​.

The Halal Guys franchise agreement requires that one of the franchisee's owners must personally supervise and participate in the day-to-day operation of the restaurant. This involves devoting time, attention, and best efforts to fulfill obligations under the franchise agreement and all related documents. This requirement is intended to ensure that the franchise operates in accordance with the franchisor's standards and expectations​​.

If the franchisee is licensed to operate more than one restaurant, specific arrangements for overseeing multiple locations would apply, indicating a significant level of involvement is required from the franchisee in the franchise's operations. This emphasizes the franchisor's expectation for active and hands-on management by the franchisee to maintain the quality and service standards associated with The Halal Guys brand.