What Naz’s Halal’s 2026 FDD Shows About Franchise Growth
When evaluating a franchise opportunity, candidates often focus first on investment requirements and financial performance. But another section of the Franchise Disclosure Document can provide important context about how a system has developed over time: Item 20.
Item 20 reports the recent history of franchised and company-owned locations, including openings, closures, transfers and other changes in the system.
For Naz’s Halal, the 2026 Franchise Disclosure Document provides a three-year view covering 2023 through 2025.
Naz’s Halal Reported Consistent Outlet Growth From 2023 Through 2025
According to Table 1 of Item 20, the number of outlets reported in the franchised category increased during each of the last three fiscal years:
| Year | Start of Year | End of Year | Net Change |
|---|---|---|---|
| 2023 | 9 | 20 | +11 |
| 2024 | 20 | 30 | +10 |
| 2025 | 30 | 41 | +11 |
That represents growth from 9 outlets at the beginning of 2023 to 41 at the end of 2025.
The FDD includes an important qualification: with the exception of one Illinois outlet that opened in 2025, these outlets operated under license agreements with an affiliate. The franchisor itself began offering Naz’s Halal franchises in 2025, so prospective candidates should understand that distinction when reviewing the historical system data.
At the systemwide level, including company-owned locations, Naz’s Halal reported:
35 total locations at the end of 2023, 43 at the end of 2024, and 54 at the end of 2025.
That represents a net increase of 19 systemwide locations over those two year-end periods.
What Item 20 Shows About Openings and Continuity
Table 3 provides another useful view of the system.
The outlets reported in the franchised category added:
- 11 openings in 2023
- 10 openings in 2024
- 11 openings in 2025
Across those three years, the table reports zero terminations, zero non-renewals, zero reacquisitions by the franchisor and zero outlets that ceased operations for other reasons within that category.
Table 2 also reports zero transfers from franchisees to new owners in 2023, 2024 and 2025.
Those figures provide candidates with additional context about the historical continuity of the licensed/franchised portion of the system during the period covered by the FDD.
It is important not to interpret those figures as a guarantee of future performance or business success. Item 20 reports historical outlet activity; it does not predict the results of an individual franchise.
Company-Owned Locations Tell a Separate Story
Item 20 separately tracks company-owned locations.
Naz’s Halal reported:
- 15 company-owned locations at the end of 2023
- 13 at the end of 2024
- 13 at the end of 2025
The company-owned table reports three closures during 2023 and one closure during 2024, along with one company-owned outlet sold to a franchisee in 2024.
This distinction is important when evaluating Item 20. The historical movement of company-owned restaurants should not be combined with the franchised/licensee data without understanding how the FDD categorizes each group.
What the 2026 FDD Says About Future Development
Item 20 also includes a snapshot of development activity as of December 31, 2025.
Table 5 reports:
11 franchise agreements signed but not yet opened and 22 projected new franchised outlets for the 2026 fiscal year.
The projected openings span multiple states, including Arizona, California, Florida, Illinois, Michigan, New York, Ohio, Pennsylvania, Texas and Wisconsin.
These are projections rather than guarantees. Development schedules can change based on site selection, permitting, construction, financing, market conditions and other factors.
Still, the table gives candidates another perspective on where the brand reported development activity at the end of 2025.
Why Item 20 Matters When Evaluating a Franchise
Item 20 does not tell a candidate whether a particular restaurant will be profitable.
Instead, it answers a different set of questions:
Is the system adding locations? Are outlets leaving the system? Are locations being transferred? How much of the system is franchised versus company-owned? Is additional development already in the pipeline?
Those questions can be particularly useful when considered alongside other sections of the FDD.
For example, Naz’s Halal’s 2026 FDD also reports an estimated initial investment of $322,800 to $584,000 for a single restaurant. Naz’s 2026 FDD 2026 A 042326
A candidate can then review Item 19 for historical financial-performance information, Item 7 for investment requirements, Item 11 for training and support, Item 12 for territory provisions, and Item 20 for historical system growth and continuity.
A Three-Year View of Naz’s Halal Growth
The clearest takeaway from the historical Item 20 data is the progression of the outlet count reported in the franchised category:
20 locations at year-end 2023 → 30 at year-end 2024 → 41 at year-end 2025.
During those same three fiscal years, Table 3 reports 32 openings and no terminations, non-renewals, franchisor reacquisitions or other operational cessations within that category.
For prospective franchisees, those numbers are not a substitute for due diligence. They are, however, a factual starting point for understanding how the Naz’s Halal system developed during the period disclosed in the 2026 FDD.
Prospective candidates should review the full current Franchise Disclosure Document, speak with existing franchisees and consult their own legal, financial and business advisors before making an investment decision.
