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
Before you sign
“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 Virginia
3 - 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 STATES
4,5 - Its FDD discloses Maryland’s order but not Virginia’s, entered seven months earlier.1
Fees side by side
| Figure | Döner Haus | Shah’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.