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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.
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Franchise Costs
4% royalty + 1% ad fund + $1,500/yr ($125/mo) website and technology fee
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
Avg. Revenue: $637,967
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Unlock financial performance dataHaraz Coffee House Franchise Analysis
Picture diving into Yemen's Haraz mountains through a quick-service cafe lens—Haraz Coffee House fuses authentic blends with American speed in strip mall spots. Their fresh 2024 FDD drops Item 19 data, spotlighting revenue and profit snapshots from early units that catch the eye in a Starbucks-saturated market. With just a handful of locations but aggressive expansion plans, does this 2023 franchisor have the secret brew for outsized returns, or is the steam all hype?
Item 7 lays out the initial investment from $279,500 to $420,800 for 1,800-2,500 sq ft cafes, covering $50,000 franchise fee, buildout, equipment, and initial inventory—positioning it as mid-tier for coffee concepts without the mega-brand premium. Ongoing fees hit 4% royalty plus 1% brand fund and a $1,500 annual tech fee ($125/month), keeping costs lean. Item 19 shines with average gross revenue of $637,967 across disclosed units, translating to an estimated profit of $264,175—implying healthy 41% margins if accurate, a standout for a brand with only 4 franchise and 7 corporate locations.
System growth exploded +50% from 6 to 9 total locations between 2022-2023, with 12 new units projected, signaling franchisor momentum despite the newbie status since 2023. No red flags in terminations or transfers yet, but the small sample size means validate with FDD Item 20 closings. For buyers eyeing coffee niches, these numbers suggest scalability in underserved ethnic quick-serve, but competition demands prime strip centers—crunch if $280K-$421K aligns with your risk tolerance for a high-margin, culturally distinct play.
Analysis based on the 2024 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Haraz Coffee House Compares
| Franchise | Investment | 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 | $1.2M – $1.3M | $40K | 6.0% | 882 |
| 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 39 franchises | $489K – $1.1M | $39K | 5.5% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 39 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
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Unlock location growth dataFranchisee Contacts
30 franchisee contacts on file from official FDD filings.
30 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
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.
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