About Moby Dick House of Kabob Franchise
Moby Dick House of Kabob is a fast casual restaurant franchise that uses traditional Persian cooking techniques with a Mediterranean flair to prepare a variety of foods including slow-braised stews, flame-grilled meats, wraps, side dishes, house-made signature seasonings and marinades, and fresh pita bread baked in an authentic clay oven.
Franchisees operate restaurants typically ranging between 1,000 and 2,500 square feet, primarily located in retail shopping centers or urban locations, offering lunch and dinner menus for dine-in or take-away service.
The target customers are the general public, with the concept separating itself from other quick service chains through its creative combination of Persian and Mediterranean cuisines.
Moby Dick House of Kabob Franchise Cost & Fees
Minimum Investment
$441K
Average Investment
$747K
Maximum Investment
$1.1M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Sales (Brand Development Fund), may increase to 2% | National brand fund |
| Total Investment Range | $440,900 – $1,053,200 | Includes build-out, inventory, working capital |
The investment range of $441K–$1.1M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (1% of Gross Sales (Brand Development Fund), may increase to 2%) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Leasehold Improvements | $150,000 | $500,000 |
| Rent - 3 Months | $14,500 | $50,000 |
| Security Deposits | $7,000 | $20,000 |
| Furniture, Fixtures and Equipment | $150,000 | $250,000 |
| Signage | $6,000 | $15,000 |
| Initial Inventory | $10,000 | $15,000 |
| Blueprints and Plans | $10,000 | $40,000 |
| Computerized Point of Sale System | $12,000 | $15,000 |
| Travel, Lodging and Meals for Initial Training | $3,000 | $7,000 |
| Reimbursement of Opening Expenses | $1,500 | $2,000 |
| Insurance - 3 Months | $900 | $1,200 |
| Grand Opening Advertising | $3,000 | $3,000 |
| Licenses and Permits | $3,000 | $45,000 |
| Professional Fees | $5,000 | $15,000 |
| Additional Funds - 3 Months | $30,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $17,500 (Franchise Agreement) |
| Renewal Fee | 50% of initial franchise fee or then-current franchise fee, whichever is higher |
| Technology Fee | $900-$1,500 per month (software maintenance fees and subscriptions) |
| Audit Fee | $1,000-$5,000 (if understatement of 2% or more found) |
| Local Advertising | 2% of Gross Sales |
| Cooperative Advertising | Up to 1.5% of Gross Sales |
| Olo Fee (Online Ordering) | $330 per month per location |
| Mystery Shopper | Up to $200 per month |
| Prohibited Product/Service Fine | $250 per day |
| Late Payment or Reporting Fee | $50 per day or 18% annually, whichever is higher |
| Management Fee | 5% of Gross Sales plus expenses |
| Interest on Overdue Amounts | 18% or highest rate allowed by law |
| Equipment Approval Fee | $1,000 |
| Product and Supplier Evaluation | Up to $500 |
| Manual and Videos Replacement Fee | $500 |
| ServSafe/TIPS Certification | $150 per person |
| Initial Training of Additional Personnel | $50 per hour per person (min 8 hours) |
| Additional On-Site Training | $500 per diem per trainer plus expenses |
| Development Extension of Time | $10,000 per extension |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 2 weeks |
| Classroom Training | 28 hours (Opening Procedures 3, Kitchen Prep 8, Customer Service 3, Cooking 8, Plating and Presentation 3, POS Training 8, Hygiene 3 - note: some subjects are classroom only) |
| On-the-Job Training | 71 hours (Kitchen Prep 8, Customer Service 3, Cooking 40, Plating and Presentation 4, POS Training 16) |
| Training Location | Washington, D.C. metropolitan area and franchisee's location |
| Additional Training | Up to 2 weeks of on-site pre-opening and opening training. Additional remedial training available at per diem rate of $500 per trainer per day plus expenses. Annual franchisee meetings may include additional training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected with exceptions |
| Exclusive Territory | No |
| Territory Size | Determined case-by-case based on population density, average household incomes, and urban/suburban classification |
| Description | Franchisee receives a protected territory where franchisor will not establish or license another Restaurant during the term, but franchisor retains rights to operate at Non-Traditional Sites within territory, sell through alternative distribution channels (Internet, catalog, grocery stores, etc.), and operate outside the territory regardless of proximity. No minimum territory guaranteed. Territory cannot be altered during the term. Development Agreement territory includes approximately 500,000 people. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years (automatic renewal) |
| Renewal Fee | No initial franchise fee or successor term fee required for renewal |
| Renewal Conditions | Must have been in substantial compliance throughout initial term; must be in full compliance at expiration; must maintain possession of premises; must sign successor franchise documents including possible general release; may be required to remodel/redecorate to current standards within 6 months |
| Transfer Fee | $17,500 (Franchise Agreement); 50% of development fee (Development Agreement) |
| Transfer Conditions | All amounts due must be paid; not in default; transferor must sign general release; transferee must meet franchisor criteria, complete training, execute current franchise agreement; franchisor has right of first refusal |
| Termination for Cause | Immediate termination without cure for insolvency, bankruptcy, felony conviction, abandonment, unauthorized transfer, false books. 5-day cure for monetary defaults. 24-hour cure for unauthorized use of Marks. 30-day cure for other defaults. |
| Non-Compete Period | 2 years after expiration or termination |
| Non-Compete Details | Franchisee and Controlling Principals prohibited for 2 years from operating or having interest in a similar business within 50 miles of any Restaurant in the System |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Operating Principal must devote substantial full time and best efforts to the supervision and conduct of the Restaurant. If the franchisee is an individual, they must serve as Operating Principal. If a business entity, the Operating Principal must maintain an equity interest and may designate a qualified individual to serve as General Manager. A General Manager must be retained to direct daily operations and devote full time and best efforts to supervision and management. |
| Required Suppliers | MD Wholesale Foods, LLC is the sole approved supplier for certain food goods, branded merchandise, smallwares and disposables. Franchisees must purchase proprietary food products from franchisor-designated suppliers. |
| Supply Restrictions | All food and beverage items, ingredients, supplies, materials, fixtures, furnishings, equipment, and other products must be obtained from approved suppliers meeting franchisor's standards and specifications. Unapproved suppliers require written approval with a $1,000 evaluation fee. |
| Franchisor Revenue from Suppliers | During fiscal year ended December 31, 2021, affiliate MD Wholesale Foods, LLC earned $1,810,537 in revenue from sales to franchisees. Franchisor may collect and retain allowances, rebates, credits, incentives from suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Franchisor does not offer, either directly or indirectly, any financing arrangements and does not guarantee notes, leases or other obligations. |
Moby Dick House of Kabob Franchise Earnings — Item 19
Moby Dick House of Kabob does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Moby Dick House of Kabob does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Moby Dick House of Kabob Litigation & Risk Flags
Clean Litigation RecordMoby Dick House of Kabob has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Moby Dick House of Kabob System Growth
Total Units
25
Franchised
6
Company-Owned
19
Moby Dick House of Kabob currently operates 6 franchised locations and 19 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 24 |
| 2021 | 0 | 0 | 24 |
| 2022 | 1 | 0 | 25 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$2.8M
Net Income
$830K
Total Assets
$1.3M
Audited by Monis J. Siddiqui, CPA P.C. for year ending December 31.
Moby Dick House of Kabob Franchise — FAQ
The total investment to open a Moby Dick House of Kabob franchise ranges from $440,900 to $1,053,200, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Moby Dick House of Kabob charges a royalty fee of 5% of Gross Sales of gross sales, plus a 1% of Gross Sales (Brand Development Fund), may increase to 2% contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Moby Dick House of Kabob Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Moby Dick House of Kabob to ensure you have the most up-to-date version.
Moby Dick House of Kabob does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Moby Dick House of Kabob has been franchising since 2016. The FDD shows an investment range of $440,900-$1,053,200, a 5% of Gross Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $35,000 and the total investment ranges from $440,900 to $1,053,200 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Moby Dick House of Kabob and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Moby Dick House of Kabob or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com