Haraz Coffee House Franchise FDD, Profits & Costs (2025)
Haraz Coffee House is a modern specialty café brand that draws inspiration from Yemen’s deep-rooted coffee traditions. Launched in 2021 by Hamzah Nasser, the concept first came to life in Dearborn, Michigan, where it introduced a fusion of authentic Yemeni flavors within a contemporary coffeehouse setting.
The brand operates from its headquarters located at 14661 Rotunda Drive, Suite 304, Dearborn, Michigan. In 2023, Haraz entered the franchising space and quickly gained momentum. The franchise now boasts 17 operational sites and over 120 additional locations in various stages of development throughout the U.S. and the Middle East.
What truly distinguishes Haraz Coffee House is its direct sourcing of organic, sun-dried beans from Yemen. This approach not only guarantees premium quality but also supports Yemeni farmers through sustainable partnerships.
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Initial Investment
How much does it cost to start a Haraz Coffee House franchise? It costs on average between $350,000 – $518,000 to start a Haraz Coffee House franchised restaurant.
This includes expenses for build-out, equipment, initial inventory, and startup operating costs. The total investment can vary based on factors such as the size and layout of the Haraz Coffee House, its geographic location, and whether the franchisee opts to lease or buy the space.
| 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 | $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 + $1,500 for 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 |
Average Revenue (AUV)
How much revenue can you make with a Haraz Coffee House franchise? A Haraz Coffee House franchised restaurant makes on average $1,106,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $604,000 yearly revenue for similar coffee & tea franchises. Below are a few Haraz Coffee House competitors as a comparison:
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Haraz Coffee House Franchise Disclosure Document
Frequently Asked Questions
How many Haraz Coffee House locations are there?
As of the latest data, Haraz Coffee House operates a total of 17 locations. Of these, 14 are franchised units, while 3 are company-owned.
What is the total investment required to open a Haraz Coffee House franchise?
The total investment required to open a Haraz Coffee House franchise ranges from $350,000 to $518,000.
What are the ongoing fees for a Haraz Coffee House franchise?
Haraz Coffee House franchisees pay a royalty fee of 4% of gross sales and a marketing fee of 3% of gross sales. These ongoing fees support brand operations and advertising initiatives.
What are the financial requirements to become a Haraz Coffee House franchisee?
To qualify as a Haraz Coffee House franchisee, candidates should be prepared to invest between $349,500 and $517,705. While the company does not publicly specify minimum net worth or liquid capital requirements, applicants are expected to have sufficient financial resources to cover startup costs and initial operations.
How much can a Haraz Coffee House franchise owner expect to earn?
The average gross sales for a Haraz Coffee House franchise are approximately $1.11 million per location. Assuming a 15% operating profit margin, $1.11 million yearly revenue can result in $167,000 EBITDA annually.
Who owns Haraz Coffee House?
Haraz Coffee House is owned and operated by its founder and CEO, Hamzah Nasser. Born in Yemen and raised in Dearborn, Michigan, Nasser established the first Haraz location in 2021, blending traditional Yemeni coffee culture with a modern café experience.
Disclaimer
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