Döner Haus vs The Halal Guys
30 franchisees lost
The Halal Guys lost 30 franchised US outlets in three years and shrank from 93 units to 81. Döner Haus lost none.
Why Döner Haus wins
Döner Haus costs less to open and run than The Halal Guys, and it grew in 2025 while The Halal Guys shrank from 93 US units to 81.
- Royalty 3% vs 6% at The Halal Guys
- Franchisees lost, 3 years 0 vs 30 at The Halal Guys
- Space needed · company figure 400–1,200sq ft vs 1,500–2,000 sq ft at The Halal Guys
- Cash on hand · company figure* $190,000+ on October 30, 2026
Before you sign
- 29 of its franchised US outlets ceased operations in three years, against 19 opened.1
- In New York, its home state, it went from 9 restaurants to 4.1
- A franchisee is suing it in Manhattan federal court over an alleged improper site denial; the contract claim is going forward.1,2
- A wage-and-hour suit by its affiliates' workers, naming the franchisor, settled for $810,000; the allegations were not adjudicated.1
- A terminated Arizona franchisee’s wrongful-termination arbitration settled with the franchisor buying the restaurant for $1.00.1
- It told California that two 2018 franchise sales, made while its registration had lapsed,
constituted a violation of Section 31110 of the Code
3
Fees side by side
| Figure | Döner Haus | The Halal Guys |
|---|---|---|
| Initial franchise fee | $35,0004 | $45,0001 |
| Total initial investment | $359,500–$586,0004 single unit | $417,600–$1,310,2501 one restaurant, excluding any delayed opening fee |
| Royalty | 3% of gross sales4 | 6% of gross sales1 |
| Marketing / ad fund | 2% of gross sales4 Brand Fund | 2% of gross sales1 Worldwide Creative Marketing Fee |
| Required local advertising | $2,000 a month4 required minimum local digital advertising, subject to a 10% annual increase | 1% of gross sales1 minimum local advertising each month |
| Total ongoing fees (royalty + fund) | 5% of gross sales4 3% royalty plus 2% Brand Fund | 8% of gross sales1 6% royalty plus 2% marketing fee |
| Typical store size | 400–1,200 sq ft5 Döner Haus current site requirement, October 2026 | 1,500–2,000 sq ft1 typical; smaller sites considered |
Questions
Is The Halal Guys growing?
No: its FDD reports 93 US restaurants at the end of 2023 and 81 at the end of 2025. Döner Haus doubled to 4 in 2025 and has 6 open today.
How many franchisees has The Halal Guys lost?
30 franchised US outlets in 2023–2025, by its own Item 20: 29 ceased operations and 1 was reacquired. Döner Haus has lost none.
Have franchisees sued The Halal Guys?
Yes. A franchisee’s site-denial suit is going forward in Manhattan federal court, and an Arizona franchisee’s arbitration ended with the franchisor buying the restaurant for $1.00.
Is Döner Haus cheaper than The Halal Guys?
Yes: a $35,000 fee and a $359,500–$586,000 investment, against $45,000 and $417,600–$1,310,250.
What royalty and marketing fees does The Halal Guys charge?
A 6% royalty, twice ours, and a 2% marketing fee, plus at least 1% of gross sales a month 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 The Halal Guys?
Döner Haus needs 400–1,200 sq ft; The Halal Guys' FDD gives 1,500–2,000 sq ft as typical.
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.