Kahala Coffee Traders

Kahala Coffee Traders Franchise FDD, Costs & Fees (2025)

Kahala Coffee Traders is a coffee shop franchise serving premium coffee, espresso drinks, teas, and baked goods, backed by franchisor support, extensive training, and efficient operational systems.

Kahala Coffee Traders is a U.S.-based coffeehouse franchise known for premium espresso, brewed coffee, and tea beverages. It was launched in 2011 and operates under Kahala Franchising, L.L.C., a subsidiary of Kahala Brands Inc., which is part of MTY Food Group.

Founded and headquartered in Scottsdale, Arizona, the franchisor entity was established in 2008. Kahala Coffee Traders began franchising in 2011, offering entrepreneurs the opportunity to operate under a recognizable and trusted brand in the coffee sector.

The franchise sells a wide variety of hot, iced, and espresso-based drinks, including its signature Kona-blend coffee, European espresso beverages, frappes, teas, and light snacks such as pastries, oatmeal bowls, sandwiches, and parfaits.

Kahala Coffee Traders stands out by offering a fast-casual café experience focused on quality and efficiency.

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.

Kahala Coffee Traders offers 2 types of franchises:

Franchise Type	Initial Investment
Traditional Kahala Coffee Traders	$216,900 to $516,500
Non-Traditional Franchise Restaurant	$88,400 to $366,500

‍

We are summarizing below the main costs associated with opening a Kiddie Academy® Franchise (if you are purchasing your Kiddie Academy facility).

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure	Amount
Initial Franchise Fee	$14,000 – $30,000
Lease Review Fee	$0 – $2,500
Rent/Security Deposit (for 3 months)	$6,000 – $20,000
Travel and Living Expenses while Training	$2,500 – $5,000
Architectural Fees	$10,000 – $20,000
Leasehold Improvements	$83,000 – $219,500
Restaurant Equipment, Furniture, Small Wares, Interior Signage and Menu Panels	$64,000 – $129,000
Exterior Signage	$8,000 – $17,000
Computer Hardware, Software (POS System)	$3,000 – $10,000
PCI Compliance Costs	$150 – $1,300
Opening Inventory (food and paper)	$2,500 – $7,000
Business Insurance	$1,000 – $5,000
Miscellaneous Opening Costs	$4,750 – $17,200
Grand Opening Marketing	$10,000
Depository Account	$3,000
Additional Funds – 3 month initial period	$5,000 – $20,000
Total	$216,900 – $516,500

Kahala Coffee Traders offers 2 types of franchises:

Franchise Type	Initial Investment
Traditional Kahala Coffee Traders	$216,900 to $516,500
Non-Traditional Franchise Restaurant	$88,400 to $366,500

‍

We are summarizing below the main costs associated with opening a Kiddie Academy® Franchise (if you are purchasing your Kiddie Academy facility).

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure	Amount
Initial Franchise Fee	$14,000 – $30,000
Lease Review Fee	$0 – $2,500
Rent/Security Deposit (for 3 months)	$6,000 – $20,000
Travel and Living Expenses while Training	$2,500 – $5,000
Architectural Fees	$10,000 – $20,000
Leasehold Improvements	$83,000 – $219,500
Restaurant Equipment, Furniture, Small Wares, Interior Signage and Menu Panels	$64,000 – $129,000
Exterior Signage	$8,000 – $17,000
Computer Hardware, Software (POS System)	$3,000 – $10,000
PCI Compliance Costs	$150 – $1,300
Opening Inventory (food and paper)	$2,500 – $7,000
Business Insurance	$1,000 – $5,000
Miscellaneous Opening Costs	$4,750 – $17,200
Grand Opening Marketing	$10,000
Depository Account	$3,000
Additional Funds – 3 month initial period	$5,000 – $20,000
Total	$216,900 – $516,500

Franchise Disclosure Document

KEY FRANCHISE STATS

All you need to know about this franchise

Started franchising

2011

Franchisees

5

+

67%

Franchise fee

$30,000

Investment

$88,000 - $517,000

Revenue (AUV)

$0

+

n.a.

Operating Profit

n.a.

Home based

Passive investment

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Competitors

Below are some of

Kahala Coffee Traders

key competitors in the

Coffee & Tea

sector.

Franchise

5

New

+

67%

$30,000

$88,000

$517,000

$0

n.a.

Kung Fu Tea

$100K - $200K

385

New

+

14%

$37,000

$169,000

$378,000

$0

n.a.

Sweetwaters Coffee & Tea

$200K - $500K

34

New

+

0%

$39,500

$473,000

$765,000

$599,000

n.a.

Balance Pan-Asian Grille

Over $500K

1

New

+

n.a.

$35,000

$733,000

$1,231,000

$1,570,000

58.0%

9.0%

Thirstea

$100K - $200K

0

New

+

n.a.

$35,000

$178,000

$256,000

$439,000

72.9%

23.4%

Dunn Brothers Coffee

$200K - $500K

44

New

+

-17%

$40,000

$456,000

$799,000

$554,000

70.0%

n.a.

Caribou Coffee

$200K - $500K

152

New

+

5%

$30,000

$279,000

$1,429,000

$732,000

72.9%

9.7%

Coco Fresh Tea & Juice

$200K - $500K

13

New

+

117%

$40,000

$221,000

$454,000

$0

n.a.

7 Leaves

$200K - $500K

14

New

+

17%

$35,000

$244,000

$490,000

$0

n.a.

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Training

Kahala Coffee Traders provides a comprehensive set of training programs to ensure that franchisees and their staff are well-prepared to operate the business efficiently:

Initial Training Program: Kahala Coffee Traders offers a foundational training program for up to two individuals per franchise. This includes 40 hours of “In-Store Training” and 40 hours of “New Owner Training.” The New Owner Training can be conducted either online or in-person at their Scottsdale, Arizona education center or another designated location, while In-Store Training occurs at a selected training store. One of the participants must have an ownership stake in the business.
Opening Week Assistance: During the first week of opening the franchise, the franchisor sends a representative to the site for up to four days. This on-site support helps in operating the business and ensuring a smooth launch.
Continuing Education and Refresher Training: Franchisees may be required to participate in refresher or additional training programs. These could include annual conferences and training on new products, sales techniques, marketing, advertising, and merchandising. Attendance is mandatory, and while the franchisor may charge a registration fee, the franchisee is responsible for travel and accommodation costs.

Territory Protection

Kahala Coffee Traders does not offer territory protection to its franchisees. The franchise agreement grants rights only to a specific approved location and explicitly states that the franchisee will not receive an exclusive territory.

This means that the franchisee may face competition from other Kahala Coffee Traders franchisees, company-owned outlets, or affiliated brands under the same ownership.

Additionally, franchisees are not provided with any option, right of first refusal, or any rights to acquire additional franchises within any area. The franchisor retains the authority to establish other franchised or company-owned locations wherever it deems appropriate.