Döner Haus vs Shah’s Halal Food

3% royalty, not 5%

Maryland and Virginia settled cases over Shah’s Halal Food’s franchise sales. Döner Haus charges a 3% royalty to its 5%, on a smaller site.

Why Döner Haus wins

Döner Haus charges a 3% royalty against Shah’s Halal Food’s 5%, and needs 400–1,200 sq ft against its 1,500–2,500 sq ft.

  • Royalty 3% vs 5% at Shah’s Halal Food
  • Royalty + fund 5%of gross sales vs 6% of gross revenue at Shah’s Halal Food
  • Space needed · company figure 400–1,200sq ft vs 1,500–2,500 sq ft at Shah’s Halal Food
  • Cash on hand · company figure* $190,000+ on October 30, 2026

Own a Döner Haus. 6 open, 5 under construction, commitments for 55+ units*.

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Before you sign

Special risks, page iv1

“Mandatory Minimum Payments. You must make minimum royalty or advertising fund payments, regardless of your sales levels. Your inability to make the payments, may result in termination of your franchise and loss of your investment.”

  • Maryland’s Securities Commissioner found four of its license agreements were franchises sold without registration; it settled, neither admitting nor denying.2
  • Virginia accepted an $8,000 penalty to settle allegations it sold four franchises there unregistered; it neither admitted nor denied them.3
  • The Virginia order states that it has never registered to offer and sell franchises in Virginia3
  • Its FDD gives four US unit counts for the same date: 56, 131 and 128 in Item 20, and 129 in Item 19.1
  • Its franchise page, as in April 2024, still reads: WE ARE IN THE PROCESS OF COMPLETING THE 2024 FDD AND REGISTRATION FOR VARIOUS STATES4,5
  • Its FDD discloses Maryland’s order but not Virginia’s, entered seven months earlier.1

Fees side by side

FigureDöner HausShah’s Halal Food
Royalty 3% of gross sales6 5% of gross revenue1
Marketing / ad fund 2% of gross sales6 Brand Fund 1% of gross revenue1 Proprietary Marketing Fund
Required local advertising $2,000 a month6 required minimum local digital advertising, subject to a 10% annual increase 1% of gross revenue1 minimum local advertising, spent monthly
Total ongoing fees (royalty + fund) 5% of gross sales6 3% royalty plus 2% Brand Fund 6% of gross revenue1 5% royalty plus 1% fund; a technology and social media fee is reserved but not yet set
Typical store size 400–1,200 sq ft7 Döner Haus current site requirement, October 2026 1,500–2,500 sq ft1 Item 7 assumption; at least 1,500 sq ft

Questions

Has Shah’s Halal faced regulatory action over franchise sales?

Yes. Maryland’s 2024 consent order found four license agreements were franchises sold without registration, and a 2025 Virginia order settled allegations of four unregistered sales; Shah’s Halal settled both without admitting or denying the claims.

What royalty does Shah’s Halal Food charge?

A 5% royalty and a 1% marketing fund, with minimum payments due regardless of your sales, plus at least 1% of gross revenue on local advertising. Döner Haus charges 3%, a 2% Brand Fund and $2,000 a month in local digital advertising.

How much space does a Döner Haus need compared with Shah’s Halal Food?

Döner Haus needs 400–1,200 sq ft; Shah’s Halal Food assumes 1,500–2,500 sq ft.

How many Shah’s Halal Food locations are there?

Its own FDD doesn’t settle it: Item 19 says 129 US restaurants at the end of 2025, and Item 20 gives 56, 128 and 131. Döner Haus has 6 open and 5 under construction.

Does Döner Haus owe its owners anything?

No. Our 2025 audited balance sheet shows nothing owed to our owners or affiliates and $96,723 in members' equity, and we held more than $190,000 in cash on October 30, 2026.

Own a Döner Haus

A 3% royalty against Shah’s Halal Food’s 5%, on a smaller site.

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Sources & fine print

Last updated

  • US units for Döner Haus are our own count on October 31, 2026, a company figure; for Shah’s Halal Food they are its latest disclosure document’s year-end figure. The change in units is each franchisor’s Item 20 for its latest fiscal year, ours included.
  • Figures are as printed in each franchisor’s disclosure document or on its own website, except the Döner Haus figures labeled company figures, which no disclosure document carries. “Royalty + fund” adds the royalty and the fund percentage; required local advertising is its own row.
  • Our figures: 2025 net loss of $84,7736, members’ equity of $96,7236 and $0 owed to our members or affiliates6 from the audited statements in Item 21 of our disclosure document, and units at December 31, 20256 from its Item 20; cash reserves8, the stores open and under construction9, and how many of the open stores are franchised9, as stated by Döner Haus.

Sources

  1. Shah’s Halal Food Franchise Disclosure Document, Shah’s Halal Franchising Inc., issued March 16, 2026 — Items 3, 6, 7 and 11; special risks, page iv; Items 19 and 20, December 31, 2025.
  2. Consent Order, In the Matter of Shah’s Halal Food Partners, Inc., Case No. 2024-0343, Maryland Securities Commissioner, issued October 31, 2024 — Consent Order No. 2024-0343 of October 31, 2024, with the franchisor’s parent, Shah’s Halal Food Partners, Inc., ¶¶ 7, 22, 26 and 29, recitals and ¶¶ A and F.
  3. Settlement Order, Commonwealth of Virginia ex rel. State Corporation Commission v. Shah’s Halal Franchising, Inc., Case No. SEC-2025-00016, Virginia State Corporation Commission, issued August 7, 2025 — Settlement Order of August 7, 2025, Case No. SEC-2025-00016; Settlement Order, Case No. SEC-2025-00016.
  4. Shah’s Halal Food franchise page, shahshalalfood.com, accessed October 30, 2026 — franchise page, October 30, 2026.
  5. Shah’s Halal Food franchise page, archived April 8, 2024, Internet Archive Wayback Machine, accessed October 30, 2026 — capture of April 8, 2024.
  6. Döner Haus Franchise Disclosure Document, Doner Haus Franchising LLC, issued April 7, 2026 — Items 6 and 20; Item 21, statement of operations, PDF page 136; Item 21, balance sheet, PDF page 135.
  7. Döner Haus current site requirement, Döner Haus, October 30, 2026 (company figure) — store size.
  8. Döner Haus cash reserves, Döner Haus, October 30, 2026 (company figure) — cash on account, October 30, 2026.
  9. Döner Haus store count, Döner Haus, October 31, 2026 (company figure) — stores open and under construction, October 31, 2026; stores open and franchised, October 31, 2026.

Competitor information is taken from public sources as of October 30, 2026 and may have changed. This is not an offer to sell a franchise; offers are made only through our Franchise Disclosure Document.