Delah Coffee

Item 7 outlines the $282,300-$424,000 initial investment, covering the $35,000 franchise fee, buildout for 1,200-2,000 sq ft shops in strip centers, equipment, inventory, and 3 months' operating capital. Ongoing fees include 4.5% royalty on gross sales, up to 2% brand fund, and up to $500/month tech fee—keeping total outflows around 6.5-7% plus fixed costs. Item 19 shines here: average gross revenue across units is $844,017, translating to estimated owner profits of $114,868-$252,712 after expenses, assuming solid operations in high-traffic spots. For a food & beverage play, these figures punch above weight for a brand just franchising in 2025.

System maturity is nascent but promising—only 4 corporate locations, up 33% from 3 in 2023 to 4 in 2024, with 9 projected new units. No red flags in terminations or transfers yet, given the youth. Multi-unit deals for 3-5 shops in territories appeal to aggressive developers, but single-unit buyers get a unique hook in the coffee & bakery category. At this investment level with disclosed revenues nearing $850K and healthy margins, Delah Coffee stands out as a high-upside bet for operators craving differentiation over cookie-cutter chains.