Haraz Coffee House Franchise FDD, Costs & Fees (2025)

Haraz Coffee House serves traditional Yemeni coffee and pastries, offering a unique and authentic coffee experience.

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 at 14661 Rotunda Drive, Suite 304, Dearborn, Michigan.

Haraz began franchising in 2023 and has experienced remarkable growth, with 17 locations currently operating and 128 more in development 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

Here's what you would need to invest 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
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

Number of units

Training

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:

  1. 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.
  2. 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.
  3. 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.

Competitors

Below are some of

Haraz Coffee House

key competitors in the

Coffee & Tea

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
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Gross Profit
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EBITDA
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14

New
+
n.a.
n.a.

$50,000

$350,000

$518,000

n.a.

$1,106,000

$xxx,xxx

74.0%

xx%

n.a.

n.a.

xx%

n.a.

Competitors

Parlay Cafe

Parlay Cafe is a hybrid café and coworking franchise offering specialty coffee, light bites, and flexible workspace, serving remote professionals, entrepreneurs, and small teams, and known for memberships, meeting rooms, and thoughtfully designed spaces combining café comfort with business amenities.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$203,000 - $459,000

Puffles

Puffles is a dessert-and-beverage franchise offering Hong-Kong-style egg waffles, customizable ice cream treats and bubble tea, serving dessert lovers and social café customers, and known for trendy format, fun social-media appeal and low investment.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$112,000 - $296,000

Tea Lounge

Tea Lounge is a café franchise offering specialty teas, bubble tea, and light café fare in stylish modern settings, serving younger consumers and café-seekers, and known for trendy ambiance, customizable drinks and franchise-ready formula.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$276,000 - $406,000

Front Porch Cafe

Front Porch Café is a café franchise offering freshly roasted coffee, breakfast and light lunch fare in a community-oriented environment, serving coffee lovers and local patrons, and known for purpose-driven culture, scalable café footprint, and valued franchise support.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$189,000 - $348,000

CAFFE ARONNE

CAFFE ARONNE is a coffee-shop franchise offering specialty espresso drinks, iced coffee, pastries and café fare, serving urban café guests and commuters, and known for premium coffee craft, community-centred décor and supportive franchise program.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$98,000 - $268,000

The Rush Coffee

The Rush Coffee is a mobile coffee-truck franchise offering specialty coffee and beverages from mobile units, serving events, campuses and crowded venues, and known for a proven mobile format, franchisee training and turnkey vehicle model.

Franchisees

?

3
+
200%
200%
Investment

?

$72,000 - $241,000