Haraz Coffee House Franchise FDD, Costs & Fees (2026)
Haraz Coffee House serves traditional Yemeni coffee and pastries, offering a unique and authentic coffee experience.
KEY FRANCHISE STATS
Franchisees
?
14
+
n.a.
n.a.
Franchise fee
?
$50,000
Investment
?
$350,000 - $518,000
Revenue (AUV)
?
Undisclosed
$1,106,000
+
58.7%
58.7%
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Haraz Coffee House, founded in 2021 by Hamzah Nasser, is a specialty coffee franchise that celebrates the rich heritage of Yemeni coffee. The first location opened in Dearborn, Michigan, introducing a unique blend of traditional Yemeni flavors with a modern café experience. The company is headquartered in Dearborn, Michigan.
Haraz began franchising in 2023 and has experienced remarkable growth across the United States and the Middle East.
The menu features a variety of specialty beverages, including the signature pistachio latte and Adeni chai, alongside traditional pastries, offering customers an authentic taste of Yemeni coffee culture.
What sets Haraz Coffee House apart from competitors is its commitment to sourcing organic, sun-dried coffee beans directly from Yemen. This partnership supports local Yemeni farmers and ensures the highest quality beans for their beverages.
Initial investment
The initial investment required for a Haraz Coffee House franchise is
$350,000 - $518,000.
That is the total cost you would need to finance if you were to start this franchise.
These costs are provided by the franchisor in the Franchise Disclosure Document.
Type of Expenditure
Amount
Initial Franchise Fee
$50,000
Grand Opening Advertising
$5,000
Lease Deposit and First Month’s Rent, Utilities
$5,000 to $15,000
Leasehold Improvements
$110,000 to $180,000
CAD Site Plans and Design Fee
$7,500 to $9,500
Furniture, Fixtures and Equipment including Café Equipment
$80,000 to $120,000
Drive Thru Locations Only
$34,000 to $39,405
Exterior and Interior Signage
$7,000 to $13,000
Licenses/Permits
$2,000 to $3,000
Architecture/Engineering Fees
$7,500 to $15,000
Technology/POS System
$1,000 per terminal and $1,500 for online payment app
Insurance
$3,500 to $4,800
Costs Incurred While Attending Training
$0 to $2,000
Opening Inventory, Supplies
$20,000 to $35,000
Additional Funds (three months)
$20,000 to $25,000
TOTALS
$349,500 to $517,705
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Type of Expenditure
Amount
Initial Franchise Fee
$50,000
Grand Opening Advertising
$5,000
Lease Deposit and First Month’s Rent, Utilities
$5,000 to $15,000
Leasehold Improvements
$110,000 to $180,000
CAD Site Plans and Design Fee
$7,500 to $9,500
Furniture, Fixtures and Equipment including Café Equipment
$80,000 to $120,000
Drive Thru Locations Only
$34,000 to $39,405
Exterior and Interior Signage
$7,000 to $13,000
Licenses/Permits
$2,000 to $3,000
Architecture/Engineering Fees
$7,500 to $15,000
Technology/POS System
$1,000 per terminal and $1,500 for online payment app
Insurance
$3,500 to $4,800
Costs Incurred While Attending Training
$0 to $2,000
Opening Inventory, Supplies
$20,000 to $35,000
Additional Funds (three months)
$20,000 to $25,000
TOTALS
$349,500 to $517,705
Franchise Disclosure Document
Below is Haraz Coffee House's 2025 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
Haraz Coffee House had 17 total units in 2025, of which 14 were franchised-owned and 3 company-owned.
Frequently Asked Questions
What is the royalty fee?
The royalty fee for a Haraz Coffee House franchise is 4.00%. In addition, you would have to pay the advertising (or national brand fund) fee of 2% - 5%.
What is the total investment?
The initial investment required for a Haraz Coffee House franchise is $350,000 - $518,000. That is the total cost you would need to finance if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.
What is the initial franchise fee?
The initial franchise fee for a Haraz Coffee House franchise is $50,000. This is typically paid upfront as part of the total initial investment, after signature of the Franchise Agreeement.
Haraz Coffee provides comprehensive training programs to ensure that franchisees and their teams are well-prepared to operate the business. The training offered by the Franchisor includes the following:
Initial Training Program: This is a foundational training provided to up to two individuals (typically a Designated Owner and a manager) without charge. It must be completed before the Franchise Business begins operation. The program aims to equip attendees with the necessary skills to run the franchise successfully. While the training itself is free, the Franchisee must cover all related expenses such as travel, lodging, meals, and wages during the training period.
Franchisee’s Ongoing Training Program: After launching the business, the Franchisee is required to establish a continual internal training program for management and staff. Each employee must complete this training as per the Franchisor’s specifications. Employment is contingent upon the successful completion of this program.
Additional Training and Sales Programs: The Franchisor may mandate additional training sessions, sales programs, and meetings, including monthly franchise meetings. These are held at the Franchisee’s expense, and the Franchisor may charge a per diem fee. Attendance may be required to introduce new products or services.
Territory Protection
Haraz Coffee grants franchisees a limited Protected Area, typically a three-mile radius, within which no other franchise offering the same products will be established, provided the franchisee is not in default. However, this area is not exclusive—Haraz Coffee may still open outlets in non-traditional venues like airports or malls within it.
The franchisee does not receive exclusive rights to customers or marketing in the territory. Other Haraz Coffee locations can serve or deliver to customers in the Protected Area, and the franchisor may acquire existing cafés there, though without adding new units post-acquisition.