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

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

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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 Code3

Fees side by side

FigureDöner HausThe 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.

Own a Döner Haus

A 3% royalty against The Halal Guys' 6%, and no franchisees lost to its 30.

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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 The Halal Guys 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.
  • Franchisees lost counts, over the three years each franchisor’s Item 20 Table 3 covers, every franchised outlet that was terminated, not renewed, reacquired by the franchisor (whether it then closed it or kept it open as company-owned) or ceased operations for other reasons; every year reconciles with the table’s start and end counts. Transfers to new owners are not losses, and company-owned closures are listed separately on each page. Döner Haus: 0 (0 in 2023, 0 in 2024, 0 in 2025)4. The Halal Guys: 30 (8 in 2023, 12 in 2024, 10 in 2025), 29 ceased, 1 reacquired1.
  • Franchised units and reacquisitions are each franchisor’s Item 20 Tables 3 and 4 for its latest fiscal year. Döner Haus: 0 franchised at the start of 2025 + 1 opened = 1. The Halal Guys: 80 franchised at the start of 2025 + 7 opened − 10 ceased operations = 77.
  • Our figures: 2025 net loss of $84,7734, members’ equity of $96,7234 and $0 owed to our members or affiliates4 from the audited statements in Item 21 of our disclosure document, and units at December 31, 20254 from its Item 20; cash reserves6, the stores open and under construction7, and how many of the open stores are franchised7, as stated by Döner Haus.

Sources

  1. The Halal Guys Franchise Disclosure Document, The Halal Guys Franchise Inc., issued April 30, 2026 — Items 1, 5, 6 and 7; Item 20, Tables 1, 3 and 4, 2023–2025; Item 20, Tables 3 and 4, 2023–2025; Item 3; Salam Hospitality LLC v. The Halal Guys Franchise, Inc., S.D.N.Y. No. 1:25-cv-08070, filed September 9, 2025; Item 3; Hegazy v. The Halal Guys, Inc., S.D.N.Y. No. 1:22-cv-01880, settled January 2, 2026; Item 3, Arizona Ally LLC, AAA No. 01-23-0004-7976, settled March 19, 2024; Item 20, Table 3.
  2. Docket, Salam Hospitality LLC v. The Halal Guys Franchise, Inc., S.D.N.Y. 1:25-cv-08070, CourtListener, accessed October 30, 2026 — order of September 28, 2026, letting the breach-of-contract claim proceed.
  3. Regulated entity record, The Halal Guys Franchise, Inc (2017–2021 filings), California Department of Financial Protection and Innovation, accessed October 30, 2026 — application app-13681, 2019 notice under Corporations Code section 31303.
  4. Döner Haus Franchise Disclosure Document, Doner Haus Franchising LLC, issued April 7, 2026 — Items 5, 6, 7 and 20; Item 20, Table 3; Item 21, statement of operations, PDF page 136; Item 21, balance sheet, PDF page 135.
  5. Döner Haus current site requirement, Döner Haus, October 30, 2026 (company figure) — store size.
  6. Döner Haus cash reserves, Döner Haus, October 30, 2026 (company figure) — cash on account, October 30, 2026.
  7. 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.