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.
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
How Haraz Coffee House Compares
Key Insights
- Lower investment than 76% of Coffee & Bakery franchises
| 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 | $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
30 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
30 Contacts Available
Unlock all Haraz Coffee House franchisee contacts with verified contact information
Due Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently 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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