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Qahwah House
Qahwah House franchises operate specialty coffee shops offering made-to-order premium organic Yemeni coffee, coffee drinks, pastries, desserts, and related products for dine-in or takeout, following the franchisor's specifications, trademarks, and proprietary systems. The business model involves selling franchise rights for single-location coffee shops, with affiliates providing inventory, equipment, and supplies. It targets local customers in the competitive specialty coffee market, serving the public vicinity of each franchise location.
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Franchise Costs
6% royalty + 2% ad fund + $300/mo technology fee
Financial Performance
Item 19 Financial Performance
Data Based On: 8 Coffee Shops operated by licensees of an affiliate, open for the entire 2024 calendar year, representing outlets substantially similar to those offered to prospective franchisees.
Extracted Item 19 Section
Avg. Revenue: $1,279,596
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Unlock financial performance dataQahwah House Franchise Analysis
Specialty coffee shops like Qahwah House are capturing hearts with unique Yemeni brews and a fresh vibe in a crowded market. Their 2025 FDD drops Item 19 revenue data that's turning heads for a brand just franchising since 2019, amid explosive expansion from 9 to 18 franchise locations last year. But in a space dominated by giants, can this Dearborn-based upstart deliver the returns to justify the leap?
Item 7 lays out the initial investment from $572,800 to $939,400, covering build-out for a 1,500-2,500 sq ft shop, equipment, inventory, and $60,000 franchise fee. Ongoing fees hit 6% royalty on gross sales, 2% brand fund, plus a $300 monthly tech fee—standard but stacking up quick on high-volume units. Item 19 shines brightest: average gross revenue clocks $1,279,596 across existing spots, with median at $1,576,539, suggesting top performers crush it. No bottom-quartile data, but these figures imply solid 20-30% margins post-fees if costs stay tight, especially targeting urban foot traffic for dine-in and takeout.
System metrics scream momentum—100% unit growth in 2024, just 1 transfer, 15 projected opens, and only 4 corporate stores backing 18 franchises. Low litigation and no major terminations in the FDD signal stability for a newbie brand. That said, rapid scaling means unproven multi-unit scalability; validate local comps in your market against these revenues. If you're eyeing coffee without Starbucks saturation, Qahwah House's numbers make a compelling case over pricier legacy chains.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Qahwah House Compares
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Qahwah House Current | $573K – $939K | $60K | 6.0% | 18 |
| 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 (2024)
Outlets by state across the United States
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Unlock location growth dataFranchisee Contacts
1 franchisee contacts on file from official FDD filings.
1 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 Qahwah House franchise ranges from $572,800 to $939,400. This includes a franchise fee of $60,000. Ongoing royalty fees are 6.0% of gross sales.
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