Kahala Coffee Traders

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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

Number of units

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:

  1. 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.
  2. 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.
  3. 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.

Competitors

Below are some of

Kahala Coffee Traders

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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5

New
+
67%
67%

$30,000

$88,000

$517,000

n.a.

$0

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Competitors

Tom n Toms Coffee

Tom n Toms Coffee is a café franchise offering espresso drinks, pretzels, breads, and light bites, serving students and urban professionals, and known for spacious cafés, extended hours, and a Korean coffeehouse heritage.

Franchisees

?

12
+
71%
71%
Investment

?

$370,000 - $487,000

Feng Cha

Feng Cha is a tea café franchise offering handcrafted milk teas, fruit teas, and desserts, serving tea lovers and social café guests, and known for creative toppings, seasonal menus, and modern, photogenic store designs.

Franchisees

?

72
+
188%
188%
Investment

?

$194,000 - $512,000

illy

illy is a premium café franchise offering espresso beverages, coffee, pastries, and packaged products, serving coffee connoisseurs and travelers, and known for Italian espresso heritage, design-driven cafés, and consistently high-quality blends.

Franchisees

?

17
+
31%
31%
Investment

?

$402,000 - $2,006,000

Ding Tea

Ding Tea is a bubble tea franchise offering milk teas, fruit teas, and specialty drinks, serving boba enthusiasts and casual café guests, and known for customizable sweetness, premium teas, and an international brand footprint.

Franchisees

?

135
+
16%
16%
Investment

?

$195,000 - $324,000

Qahwah House

Qahwah House is a specialty coffee shop franchise offering authentic Yemeni coffee, baked goods, and café experiences, serving coffee enthusiasts and communities, and known for premium sourcing, cultural heritage, and welcoming hospitality.

Franchisees

?

18
+
500%
500%
Investment

?

$573,000 - $939,000

Kahala Coffee Traders

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.

Franchisees

?

5
+
67%
67%
Investment

?

$88,000 - $517,000