About Qahwah House Franchisor Franchise
Qahwah House is a unique specialty coffee shop franchise devoted to selling specialty Yemeni coffee, coffee drinks, pastries, desserts, and related products for dine-in or carry out.
Franchisees operate a retail coffee shop serving made-to-order specialty coffee beverages, espresso drinks, teas, and baked goods to the general public within the vicinity of their franchise location.
The target customers are coffee enthusiasts and the general public seeking a distinctive, authentic Yemeni coffee experience in a welcoming café environment.
Qahwah House Franchisor Franchise Cost & Fees
Minimum Investment
$573K
Average Investment
$756K
Maximum Investment
$939K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $60,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales (Brand Development Fund) | National brand fund |
| Total Investment Range | $572,800 – $939,400 | Includes build-out, inventory, working capital |
The investment range of $573K–$939K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (2% of Gross Sales (Brand Development Fund)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $60,000 | $60,000 |
| Professional Services | $12,000 | $18,000 |
| Leasehold Improvements | $240,000 | $400,000 |
| Furniture, Fixtures, and Equipment | $140,000 | $210,000 |
| Computer Systems and POS System | $1,000 | $1,200 |
| Permits, Business Licenses | $1,000 | $2,000 |
| Signage (Indoor/Outdoor) | $9,000 | $11,000 |
| Miscellaneous Travel and Living Expenses while Training | $8,000 | $13,000 |
| Initial Inventory | $35,000 | $50,000 |
| Smallwares and Initial Operating Supplies | $10,000 | $20,000 |
| Grand Opening Advertising | $0 | $5,000 |
| Initial Lease Payments (three months) | $12,000 | $78,000 |
| Insurance | $1,800 | $2,200 |
| Miscellaneous Pre-Opening Expenses | $8,000 | $19,000 |
| Pre-Opening Labor and Employee Payroll | $15,000 | $20,000 |
| Additional Funds (three months) | $20,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 for non-control transfer; 75% of then-current initial franchise fee for new franchisee; 50% for previously approved franchisee |
| Renewal Fee | 25% of then-current initial franchise fee |
| Technology Fee | $300 per month |
| Audit Fee | Actual costs if audit necessary due to failure to furnish reports or understatement of 2% or more of Gross Sales |
| Minimum Local Advertising | 1% of Gross Sales or $500, whichever is greater |
| Grand Opening Advertising | Up to $5,000 |
| Inventory Purchases | Actual cost |
| Initial Training for Additional Personnel | $1,500 per person |
| Additional/Ongoing Training | $300 per day per trainee plus expenses |
| Additional Operations Assistance | $350 per day per trainer plus expenses |
| Late Charge | $50 per late payment |
| Interest on Late Payments | 1.5% per month or maximum rate allowed by law |
| Opening Extension Fee | $10,000 |
| Quality Assurance Inspections | Up to $450 per inspection |
| Product and Supplier Approval Fee | Greater of $750 or actual costs |
| Relocation Fee | 50% of then-current initial franchise fee |
| Liquidated Damages | $250 first violation; $500 second; $1,000 third or more |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 2 weeks |
| Classroom Training | 16 hours |
| On-the-Job Training | 100 hours |
| Training Location | Qahwah House Coffee Shop in Dearborn, Michigan |
| Additional Training | 1 representative for up to 4 days surrounding opening for on-site assistance. ServSafe certification required. Additional or refresher training may be required. Annual meetings or conventions may be specified. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | A geographic area surrounding Coffee Shop represented by a zip code or portion of a zip code, generally including a population of approximately 50,000 people |
| Description | No exclusive territory granted. Franchisee receives a Protected Area where franchisor will not open or authorize another Qahwah House Coffee Shop, subject to exceptions for non-traditional locations (corporate cafeterias, airports, stadiums, hospitals, malls, grocery stores, ghost kitchens, etc.). Franchisor reserves the right to modify Protected Area upon renewal, transfer, or after the 5th year anniversary and every 5 years thereafter. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two 5-year renewal terms |
| Renewal Fee | 25% of then-current initial franchise fee |
| Renewal Conditions | Not in default; no 2+ notices of default in last 12 months; timely written notice (6-12 months before renewal); maintain possession of location or secure alternative; comply with current appearance/equipment/signage requirements; satisfied all reporting and monetary obligations; completed additional training; signed general release; signed then-current franchise agreement (may have materially different terms); paid renewal fee; comply with current specifications; franchisor approval. |
| Transfer Fee | $5,000 for non-control transfer; 75% of then-current initial franchise fee for new franchisee; 50% for previously approved franchisee |
| Transfer Conditions | Proposed transferee must meet new franchisee standards; terms must not place unreasonable burdens; franchisee must be in compliance and pay all monies owed; sign termination and release agreement; transferee must complete training; sign new or assume existing franchise agreement; pay transfer fee; comply with current requirements; transferee not a competitor; landlord approval of lease assignment. |
| Termination for Cause | Curable defaults: 10 days for monetary defaults, 30 days for other defaults. Non-curable defaults (immediate termination): material misrepresentation, fraud, failure to have employees sign confidentiality agreements, criminal conviction, failure to maintain immigration status, 2+ notices of default for same issue in 12 months, 3+ notices of default in 12 months, abandonment, substance abuse, conduct reflecting adversely on brand, lease termination, 3+ liquidated damages in a year, failure to complete training, failure to maintain Designated Owner/General Manager. |
| Non-Compete Period | 2 years |
| Non-Compete Details | No competing business for 2 years within (i) the Franchise Location; (ii) the area within 25 miles of the Franchise Location; and (iii) the areas within 25 miles of any other Qahwah House Coffee Shop existing or in development at the time of beginning competing business. Competing Business defined as any business where coffee-based drinks constitute at least 5% or more of sales. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Participation Details | At least one Designated Owner must preserve and exercise ultimate authority and responsibility for management and operation. A General Manager must devote full time and effort to day-to-day active management. The General Manager must complete initial training and sign confidentiality/non-competition agreement. If a Designated Owner is not the General Manager, the General Manager must be under direct supervision of a Designated Owner. |
| Required Suppliers | Qahwah Trading, LLC (Designated Supplier of tea, coffee beans, pastries, smallwares, and paper products); Qahwah House Enterprises, LLC (Designated Supplier of certain equipment including coffee grinders and coffee brewer); Designated Supplier for POS system and milk |
| Supply Restrictions | All products and services must be purchased in accordance with franchisor specifications and from Designated or Approved Suppliers. 75-90% of total purchases for establishment and 65-75% for ongoing operations must be from Designated/Approved Suppliers or per specifications. |
| Franchisor Revenue from Suppliers | Affiliate Qahwah Enterprises receives 3% rebates on required equipment purchases. In 2024, Qahwah Enterprises collected $931,731 from licensees for equipment purchases. Qahwah Trading collected $3,887,045 from licensees for inventory and supplies. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing for your franchise. We do not guaranty any of your notes, leases or other obligations. |
Qahwah House Franchisor Franchise Earnings — Item 19
Average Revenue
$1.3M
Median Revenue
$1.6M
Revenue Range
$478K – $2.1M
Sample Size
8 units
Past financial performance does not guarantee future results. Individual results will vary.
Qahwah House Franchisor Litigation & Risk Flags
Clean Litigation RecordQahwah House Franchisor has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Qahwah House Franchisor System Growth
Total Units
22
Franchised
18
Company-Owned
4
Qahwah House Franchisor currently operates 18 franchised locations and 4 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 2 | 0 | 5 |
| 2023 | 6 | 0 | 11 |
| 2024 | 11 | 0 | 22 |
Transfers: 1 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
0
Net Income
$-7,545
Total Assets
$93K
Audited by Boyum & Barenscheer PLLP for year ending December 31.
Qahwah House Franchisor Franchise — FAQ
The total investment to open a Qahwah House Franchisor franchise ranges from $572,800 to $939,400, per their Franchise Disclosure Document. This includes the initial franchise fee of $60,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Qahwah House Franchisor charges a royalty fee of 6% of Gross Sales of gross sales, plus a 2% of Gross Sales (Brand Development Fund) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Qahwah House Franchisor Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Qahwah House Franchisor to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Qahwah House Franchisor franchise owners report average revenue of $1.3M and median revenue of $1.6M. This is based on a sample of 8 units. Past performance does not guarantee future results.
Qahwah House Franchisor has been franchising since 2024. The FDD shows an investment range of $572,800-$939,400, a 6% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $60,000 and the total investment ranges from $572,800 to $939,400 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Qahwah House Franchisor and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Qahwah House Franchisor or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com