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

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

14
+
n.a.
n.a.
Investment required

?

$350,000 - $518,000
Revenue (AUV)

?

$1,106,000
Undisclosed
Pro
+
58.7%
+
xx%
-xx%
58.7%
Initial franchise fee

?

$50,000
Royalty fees

?

4.00%
+
2% - 5%
Operating Profit

?

n.a.

Pro
Franchisees

?

14
+
n.a.
n.a.
Investment required

?

$350,000 - $518,000
Franchise fee

?

$50,000
Royalty fees

?

4.00%
+
2% - 5%
Revenue (AUV)

?

$1,106,000
Undisclosed
Pro
+
58.7%
+
xx%
-xx%
58.7%
Operating Profit

?

n.a.

Pro

Haraz Coffee House: Bringing Yemeni Coffee Culture to the World

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. Additionally, the company offers a Yemeni Coffee School, providing training in traditional coffee preparation methods, further enriching the cultural experience for both staff and customers.

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

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

14

+
n.a.
n.a.
No growth
New

$50,000

$350,000

-

$518,000

n.a.

$1,106,000

Pro

74.0%

Pro

n.a.

Pro

Food & Beverage

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.
  4. Follow-Up and Refresher Training: The Franchisor may conduct mandatory follow-up training sessions on a periodic or as-needed basis. These programs can include webinars, conference calls, and meetings, and typically involve a fee per attendee, currently set at $250 per day.

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.

Number of units

2025
Franchised units

0

4

14

Company-owned units

6

6

3

Total units

6

10

17

Competitors

Happy Lemon

Investment required
$298,000
-
$587,000
Franchisees
106
+
16%
16%

Tiger Sugar

Investment required
$306,000
-
$542,000
Franchisees
47
+
147%
147%

Chatime

Investment required
$281,000
-
$494,000
Franchisees
10
+
-17%
-17%

Ellianos Coffee

Investment required
$672,000
-
$1,069,000
Franchisees
63
+
110%
110%

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