Qahwah House Franchise FDD, Costs & Fees (2025)

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.

Qahwah House is a specialty coffee franchise rooted in Yemeni coffee culture. It was founded in 2017 in Dearborn, Michigan, by Ibrahim Alhasbani. The brand is headquartered in Dearborn, Michigan, under Qahwah House Franchisor, LLC.

Qahwah House sources its coffee beans directly from its family-owned farms in Yemen, where the Alhasbani family has cultivated coffee for eight generations. The beans are roasted in small batches in the United States to ensure premium quality.

The menu features traditional Yemeni spiced coffee, espresso drinks, teas, fruit refreshers, and authentic desserts. The franchise program for Qahwah House began in 2019, following the brand’s rapid growth and nationwide popularity.

Qahwah House stands out in the competitive coffee industry through its authentic Yemeni heritage and complete control of its supply chain—from farm to cup. The brand provides a warm, community-centered space with extended hours and a unique menu inspired by Yemeni culture.

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 $60,000
Professional Services $12,000 to $18,000
Leasehold Improvements $240,000 to $400,000
Furniture, Fixtures, and Equipment $140,000 to $210,000
Computer Systems and Point-of-Sale (POS) System $1,000 to $1,200
Permits and Business Licenses $1,000 to $2,000
Signage (Indoor/Outdoor) $9,000 to $11,000
Miscellaneous Travel and Living Expenses while Training $8,000 to $13,000
Initial Inventory $35,000 to $50,000
Smallwares and Initial Operating Supplies $10,000 to $20,000
Grand Opening Advertising $0 to $5,000
Initial Lease Payments (three months) $12,000 to $78,000
Insurance $1,800 to $2,200
Miscellaneous Pre-Opening Expenses $8,000 to $19,000
Pre-Opening Labor and Employee Payroll $15,000 to $20,000
Additional Funds (three months) $20,000 to $30,000
Total Estimated Initial Investment $572,800 to $939,400
Type of Expenditure Amount
Initial Franchise Fee $60,000
Professional Services $12,000 to $18,000
Leasehold Improvements $240,000 to $400,000
Furniture, Fixtures, and Equipment $140,000 to $210,000
Computer Systems and Point-of-Sale (POS) System $1,000 to $1,200
Permits and Business Licenses $1,000 to $2,000
Signage (Indoor/Outdoor) $9,000 to $11,000
Miscellaneous Travel and Living Expenses while Training $8,000 to $13,000
Initial Inventory $35,000 to $50,000
Smallwares and Initial Operating Supplies $10,000 to $20,000
Grand Opening Advertising $0 to $5,000
Initial Lease Payments (three months) $12,000 to $78,000
Insurance $1,800 to $2,200
Miscellaneous Pre-Opening Expenses $8,000 to $19,000
Pre-Opening Labor and Employee Payroll $15,000 to $20,000
Additional Funds (three months) $20,000 to $30,000
Total Estimated Initial Investment $572,800 to $939,400

Qahwah House

2025

Franchise Disclosure Document

Number of units

Training

Qahwah House offers a structured and multi-phase training program to prepare franchisees, managers, and staff for successful operations. The training combines remote, in-person, and ongoing instruction tailored to different stages of the franchise lifecycle.

  1. Initial Training Program
    Franchisees must complete a remote pre-training followed by an in-person program before opening. A Designated Owner and General Manager (up to three persons) can attend at no additional fee, but extra attendees incur per diem charges. Completion is mandatory at least 30 days before launching operations.
  2. On-Site Opening Support
    The Franchisor provides a representative to assist with the business launch, offering up to four days of on-site training and support. This includes setup guidance and operational training as per the Brand Standards Manual.
  3. Employee Training Program
    Franchisees are responsible for training all staff per company standards. A continuous training regimen must be maintained, ensuring all employees complete required programs and uphold service quality.

Territory Protection

Qahwah House provides franchisees with a Protected Area, defined geographically—typically around a zip code with an approximate population of 50,000. Within this area, the Franchisor agrees not to authorize another Qahwah House Coffee Shop as long as the franchisee is in good standing.

However, the agreement clearly states that this does not confer exclusivity in marketing or customer rights, and competition from other franchisees or company-owned outlets remains possible.

Moreover, Qahwah House retains the right to modify the Protected Area upon renewal, transfer, or after the five-year anniversary of the franchise. They may reduce the size or alter the boundaries based on population growth or market demand, without offering compensation or first rights of refusal to the franchisee.

Competitors

Below are some of

Qahwah House

key competitors in the

Coffee & Tea

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
Sign up
Gross Profit
Sign up
EBITDA
Sign up

18

New
+
500%
500%

$60,000

$573,000

$939,000

n.a.

$1,577,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Competitors

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Franchisees

?

0
+
n.a.
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?

$199,000 - $346,000

Boba Nation

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Franchisees

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1
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?

$350,000 - $495,000

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?

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$203,000 - $459,000

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?

$112,000 - $296,000

Tea Lounge

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$276,000 - $406,000

Front Porch Cafe

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Franchisees

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?

$189,000 - $348,000