Haraz Coffee House
Haraz Coffee House operates quick-service cafes specializing in coffee blends from Yemen's Haraz mountains, along with espresso, teas, pastries, and related items, offering both in-cafe seating and carry-out services. The franchise business model involves licensing standardized cafe designs (1800-2500 sq ft in strip centers) with proprietary marks, recipes, supplier arrangements, and operational systems to franchisees. It targets the general public in the highly competitive quick-service coffee market, competing with national, regional, and local coffee chains.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
4% royalty + 1% ad fund + $1,500/yr ($125/mo) website and technology fee
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: Financial performance of one company-owned/affiliated café (Village Qahwah, LLC) for partial 2021 (April 10-Dec 31) and full 2022-2023 years. The expenses used for profit calculation are adjusted with hypothetical royalty and ad fund fees to represent a franchise operation, as per the FDD's notes.
* Calculated average gross revenue as the sum of sales for 2021 (partial), 2022, and 2023 divided by 3 years. Calculated average gross profit as (Sales - COGS) for each year, then averaged over 3 years. Calculated average net profit (operating profit) for a hypothetical franchise by subtracting COGS, Labor, Rent, and the stated 5% Royalty and 1% Ad Fund from Sales for each year, then averaged over 3 years. This calculation assumes the provided affiliate expenses (COGS, Labor, Rent) are representative for a franchise, as stated in the notes, plus the hypothetical franchise fees. No expense ranges were provided, so best_guess_profit_low and best_guess_profit_high are the same as the calculated average net profit.
Extracted Item 19 Section
How Haraz Coffee House Compares to Other Coffee & Bakery Franchises
Key Insights
- Lower investment than 76% of Coffee & Bakery franchises
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
Haraz Coffee House Current | $280K - $421K | $50K | 4.0% | 4 |
| PANERA BREAD BAKERY-CAFÉ | $633K - $4.9M | $35K | 5.0% | 1,112 |
| SCOOTER'S COFFEE | $955K - $1.5M | $40K | 6.0% | 825 |
| NOTHING BUNDT CAKES | $667K - $1.0M | $45K | 6.0% | 643 |
| GREAT AMERICAN COOKIES | $341K - $463K | $25K | 6.0% | 395 |
| 7 BREW | $894K - $2.2M | $35K | 4.5% | 297 |
Coffee & Bakery Average 37 franchises | $498K - $1.1M | $40K | 5.5% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 37 Coffee & Bakery franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2023)
Outlets by state across the United States
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a Haraz Coffee House franchise?
The total initial investment to open a Haraz Coffee House franchise ranges from $279,500 to $420,800. This includes a franchise fee of $50,000. Ongoing royalty fees are 4.0% of gross sales.
How much revenue does a Haraz Coffee House franchise make?
According to the 2024 FDD, the average gross revenue for a Haraz Coffee House franchise is $637,966.57.
How much profit can you make with a Haraz Coffee House franchise?
Based on the financial performance data in the FDD, estimated profit for a Haraz Coffee House franchise ranges from $264,174.68 to $264,174.68 per year. Actual results vary based on location, management, and market conditions.
How many Haraz Coffee House franchise locations are there?
As of the 2024 FDD, Haraz Coffee House has 4 franchise locations. The company has been franchising since 2023.
Is Haraz Coffee House a good franchise to buy?
Haraz Coffee House shows several positive indicators: transparent financial performance data (Item 19). However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in Haraz Coffee House?
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