About Naf Naf Middle Eastern Grill Franchise
Naf Naf Middle Eastern Grill is a fast-casual restaurant franchise offering and selling Middle Eastern fare, including shawarma, falafel, hummus, pita, and other food products and beverages to the general public.
Franchisees operate restaurants under the NAF NAF brand, managing day-to-day operations including food preparation, customer service, staffing, and local marketing.
The target customers are the general public, with a focus on areas with large working populations, dense urban office neighborhoods, suburban office parks, and locations near daytime traffic drivers.
Naf Naf Middle Eastern Grill Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 5% of Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Net Sales (Brand Fund, can increase up to 3%) plus 2% of Net Sales minimum Local Marketing Spend | National brand fund |
| Total Investment Range | $545,945 – $833,600 | Includes build-out, inventory, working capital |
The investment range of $546K–$834K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Net Sales) and marketing fee (1% of Net Sales (Brand Fund, can increase up to 3%) plus 2% of Net Sales minimum Local Marketing Spend) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $30,000 | $30,000 |
| Construction / Leasehold improvements | $221,378 | $350,000 |
| Architect/Engineers/Expeditor Fees | $9,100 | $35,000 |
| Furniture, Fixtures, and Equipment | $198,268 | $225,000 |
| Signage | $10,500 | $32,000 |
| Digital/Menu Boards | $11,928 | $15,000 |
| Opening inventory and supplies | $11,800 | $25,000 |
| Point-of-Sale and Computer Systems | $16,571 | $26,100 |
| Market Introduction Program | $10,000 | $10,000 |
| Training Expenses | $3,900 | $13,300 |
| Insurance (Annual) | $2,500 | $7,200 |
| Miscellaneous Opening Costs | $10,000 | $25,000 |
| Additional funds - 3 months | $10,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of then-current initial franchise fee for new franchisees |
| Renewal Fee | 50% of then-current initial franchise fee for new franchisees |
| Technology Fee | $500 per month (can increase up to $1,000 per month) |
| Audit Fee | Cost of inspection or audit including legal fees, independent accountants' fees, plus travel expenses (if understatement exceeds 2%) |
| Cooperative Contributions | Up to 2% of monthly Net Sales |
| Ongoing and Supplemental Training | $500 to $1,000 per trainer per day plus expenses |
| Annual Meeting / Convention | Up to $500 per person |
| Computer Software and Technology Support | Not to exceed $1,000 per month |
| Franchise System Website/Intranet | Up to $100 per month |
| Relocation | Not to exceed $5,000 plus reasonable costs |
| Inspection Fee | $1,500 plus actual costs for second and subsequent follow-up evaluations |
| Interest | 1.5% per month or highest commercial contract interest rate allowed |
| Administrative Fee | $100 per late or dishonored payment |
| Records Deficiency Fee | $100 per day |
| Development Images Deficiency Fee | $100 per day |
| Non-Compliance Fee | $250 per violation |
| Management Fee | Up to 5% of Net Sales plus out-of-pocket expenses |
| Tax Reimbursement | Out-of-pocket cost reimbursement plus 15% administrative fee |
| Insurance Reimbursement | Out-of-pocket cost reimbursement plus 15% administrative fee |
| Training Cancellation Fees | $500 to $1,000 per trainer per day |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 4 weeks |
| Classroom Training | 30 hours |
| On-the-Job Training | 130 hours |
| Training Location | Certified Naf Naf Training Store |
| Additional Training | Opening team sent for up to 7 days. Ongoing and supplemental training available at $500-$1,000 per trainer per day plus expenses. Annual franchisee meetings may be required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected (Area of Protection with exceptions for Non-Traditional Venues) |
| Exclusive Territory | No |
| Territory Size | Minimum day-time population of approximately 30,000 people. Suburban: typically 2-mile radius (max 3-mile). Urban: several blocks to 1/4-mile radius. |
| Description | Franchisees receive an Area of Protection around the restaurant. The Area of Protection excludes Non-Traditional Venues (ghost kitchens, food trucks, airports, hospitals, universities, stadiums, etc.). The franchisor retains rights to operate and franchise outside the Area of Protection and at Non-Traditional Venues within it. Multi-unit developers receive a Territory with similar protections under a Development Rights Rider. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years from the day the Restaurant first opens to the public |
| Renewal Term | 10 years |
| Renewal Fee | 50% of then-current initial franchise fee for new franchisees |
| Renewal Conditions | Timely request business review (6-9 months before term end); substantial compliance with all obligations during term; remodel/upgrade or relocate restaurant; sign then-current franchise agreement and releases; pay successor franchise fee. Terms may differ materially from original agreement including higher fees and modified/smaller Area of Protection. |
| Transfer Fee | 50% of then-current initial franchise fee for new franchisees (reduced to $5,000 for transfers among owners, immediate family, controlled entities, or to experienced NAF NAF franchisees/managers) |
| Transfer Conditions | Transferee must qualify and meet franchisor standards; franchisee must be current on all payments; transferee not in competitive business; training completed; transfer fee paid; transferee can occupy site for expected term; sign then-current franchise agreement; agree to upgrade and remodel; general release signed; purchase terms will not adversely affect operation. |
| Termination for Cause | Immediate termination for material misrepresentation, failure to open by deadline, abandonment (3+ consecutive days), unapproved transfer, felony conviction, dishonest conduct, foreclosure, misuse of confidential information, non-compete violation, material underreporting of Net Sales, repeated defaults, insolvency, anti-terrorism law violations, loss of premises, data security incidents, or cross-default with other franchise agreements. Curable defaults: 5 days for monetary/insurance; 10 days for unpaid judgments over $25,000; 15 days for material law violations; 30 days for supplier payments and other defaults; 60 days for attachment/receivership. |
| Non-Compete Period | 2 years |
| Non-Compete Details | For 2 years after termination or expiration, no owning interest in or performing services for a Competitive Business (restaurant with 30%+ Middle Eastern/Mediterranean food menu) at the restaurant's site, within 10 miles of the restaurant's site, or within 5 miles of another NAF NAF Restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee must designate an Operating Principal (minimum 20% ownership) and an Operating Partner (minimum 5% ownership, may be same person as Operating Principal). The Operating Partner must be solely dedicated to the brand and responsible for managing day-to-day operations. At all times, there must be 1 fully-trained, certified manager managing day-to-day on-site operations, with at least 3 employees who have completed all positional training and shift leader training modules. |
| Required Suppliers | Franchisees must buy the restaurant's food, paper products, operating supplies, computer/point-of-sale system, printed marketing/advertising materials, gift card/loyalty program services, and music services only from designated or approved suppliers. |
| Supply Restrictions | Approximately 100% of overall purchases and leases must be from franchisor, designated or approved suppliers, or according to franchisor standards and specifications. |
| Franchisor Revenue from Suppliers | Affiliate receives a fixed-dollar-payment from third-party fountain beverage vendor. Franchisor and affiliates may derive revenue from promotional allowances, volume discounts, and other amounts paid by suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease, or obligation. |
Naf Naf Middle Eastern Grill Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Naf Naf Middle Eastern Grill Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Naf Naf Middle Eastern Grill System Growth
Naf Naf Middle Eastern Grill currently operates 7 franchised locations and 22 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 2 | 0 | 38 |
| 2020 | 4 | 8 | 34 |
| 2021 | 3 | 8 | 29 |
Transfers: 0 | Closures: 16
State Registrations
Registered in 9 states: IL, IN, MI, MN, NY, RI, SD, VA, WI
Naf Naf Middle Eastern Grill Franchise — FAQ
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