How Much Does a Haraz Coffee House Franchise Owner Make? Profitability Breakdown
Haraz Coffee House’s disclosed Item 19 Financial Performance Representations show one affiliate-owned café generating an estimated $286,000–$540,000 in annual owner benefit between 2022 and 2024, with margins improving every year. Importantly, this figure comes from a single affiliate location, not a system-wide franchisee average — actual results for franchisees will vary.
Haraz Coffee House Quick Stats
| Metric | Value |
|---|---|
| Average Owner Income (2024) | ~$540,000 (before unallocated OpEx) |
| Royalty Rate | 4% |
| Initial Investment | $349,500 – $517,705 |
| Initial Franchise Fee | $50,000 ($45,000 with veteran discount) |
| Avg Payback Period | 1.2 – 1.5 years (base case) |
| SharpSheets Rating | 6/10 (pending franchisee-level data) |
⚠️ Important caveat: This data reflects Village Qahwah LLC, a single Haraz-affiliated café in Dearborn, MI — not a franchisee-owned unit, and not a system average. Haraz Coffee House’s FDD explicitly states that franchisee results may differ. Treat these figures as a directional benchmark, not a guarantee.
How Much Does a Haraz Coffee House Franchise Owner Make Per Year?
Haraz Coffee House discloses three years of actual financial performance from one affiliate-owned café. Revenue grew from $697,069 in 2022 to $1,106,000 in 2024 — a 58.7% increase in two years. More importantly, margins improved at the same time, which is the real story here.
| Year | Revenue | COGS % | Labor % | Rent % | Est. Owner Benefit* |
|---|---|---|---|---|---|
| 2022 | $697,069 | 27.5% | 22.5% | 3.0% | ~$285,800 |
| 2023 | $747,955 | 31.4% | 22.3% | 3.5% | ~$275,200 |
| 2024 | $1,106,000 | 26.0% | 16.9% | 2.3% | ~$539,700 |
*Owner benefit shown before unallocated other operating expenses (utilities, insurance, admin), since Haraz’s Item 19 disclosure does not break those out separately.
Methodology note: These estimates are calculated by SharpSheets from Haraz Coffee House’s disclosed Item 19 Financial Performance Representations (2025 FDD, pages 51–53), subtracting cost of goods sold, labor, occupancy, the 4% royalty, and the combined 2% advertising fees from gross revenue. Remaining operating costs such as utilities and insurance are not broken out in the FDD and are not included in the figures above. For background on how Item 19 disclosures work, see the FTC’s Franchise Rule Compliance Guide.
Haraz Coffee House’s affiliate-owned café nearly doubled its estimated owner benefit between 2022 and 2024 — growing from roughly $285,800 to $539,700 while revenue climbed 58.7%, based on disclosed Item 19 financial data.
For comparison, similarly positioned regional coffee concepts like Qamaria Yemeni Coffee Co. and Summer Moon Coffee operate in the same specialty-coffee niche, and a side-by-side comparison can help buyers contextualize whether Haraz’s margin trajectory is concept-specific or category-wide.
Is Haraz Coffee House Franchise Profitable?
Based on the trend in the disclosed data, yes — and increasingly so. The affiliate café’s estimated margin (before unallocated OpEx) improved from roughly 41% in 2022 to nearly 49% in 2024. Labor efficiency drove most of that gain, dropping from 22.5% of revenue to 16.9% as the location scaled.
Haraz’s 4% royalty rate is also notably below the 5–8% range typical for coffee and beverage franchises, which means more of each revenue dollar flows to the owner before the brand takes its cut. That’s a real structural advantage — assuming a franchisee-owned unit can replicate even a portion of this affiliate’s growth curve.
At a 4% royalty rate plus 2% combined advertising fees, Haraz Coffee House franchisees retain a higher share of gross revenue than the 5–8% royalty range typical across coffee and beverage franchise brands.
How Long Until a Haraz Coffee House Franchise Is Profitable?
Using the 2024 affiliate figures, an owner benefit of roughly $539,700 against a midpoint investment of $433,600 implies a payback period of well under two years. That said, this is almost certainly faster than a typical new franchisee should expect — the affiliate location had time to mature, refine staffing, and benefit from an established Dearborn market before hitting that 2024 number.
A more realistic planning range for a new franchisee:
| Scenario | Assumed Owner Benefit | Payback Period |
|---|---|---|
| Conservative (Year 1-style, 2022 performance) | ~$285,800 | ~1.5 years |
| Base Case (blended 3-year average) | ~$367,000 | ~1.2 years |
| Optimistic (2024 performance replicated) | ~$539,700 | ~0.8 years |
These ranges are aggressive relative to most QSR and fast-casual franchise paybacks (typically 3–5 years), largely because Haraz’s investment level is moderate while the affiliate’s margins are strong. Treat the optimistic scenario with real caution — it assumes a brand-new unit matches a maturing affiliate’s best year.
What Factors Affect Haraz Coffee House Franchise Owner Income?
- Location and market — Dearborn’s Yemeni-American community gave this affiliate a built-in customer base; replicating that demand profile elsewhere isn’t guaranteed
- Labor management — the 2024 labor efficiency gain (22.5% down to 16.9%) is the single biggest driver of margin improvement, and it’s operator-dependent
- Rent structure — this affiliate’s rent ran 2.3%–3.5% of revenue, well below typical coffee-sector benchmarks of 10–15%, suggesting a favorable lease that a new franchisee may not be able to negotiate
- Owner-operator vs. semi-absentee — the affiliate data does not disclose owner involvement level, which matters significantly for labor cost control
Funding a Haraz Coffee House Franchise
With a total investment range of $349,500–$517,705 and a $50,000 initial franchise fee ($45,000 for veterans), Haraz Coffee House sits in the mid-tier investment category — fully SBA 7(a) eligible.
On a $400,000 SBA 7(a) loan at roughly $1,100/month per $100,000 borrowed, a franchisee is looking at an estimated $4,400/month debt service — comfortably covered even under the conservative owner benefit scenario above. SharpSheets’ full funding methodology, including ROBS and veteran-specific options, is covered in our upcoming SBA loan guide (coming soon).
For complete FDD details, territory availability, and franchisee validation contacts for Haraz Coffee House, visit FranchisePayback.com.
Frequently Asked Questions About Haraz Coffee House Franchise Owner Income
What is Haraz Coffee House’s franchise royalty rate?
Haraz Coffee House charges a 4% royalty on gross sales, plus a 1% brand advertising fund fee and an additional 1% local advertising requirement, for 6% in combined ongoing fees.
How much does a Haraz Coffee House franchise owner make?
Based on disclosed Item 19 data from one affiliate-owned café, estimated owner benefit ranged from roughly $285,800 in 2022 to $539,700 in 2024, before unallocated operating expenses like utilities and insurance.
Is Haraz Coffee House franchise profitable?
The disclosed affiliate data shows improving profitability, with estimated margins rising from about 41% to nearly 49% of revenue between 2022 and 2024, driven mainly by labor cost efficiency gains.
How does Haraz Coffee House’s royalty rate compare to other coffee franchises?
At 4%, Haraz’s royalty rate runs below the 5-8% typical range for coffee and beverage franchises, leaving more gross revenue available to the franchisee before brand fees.
How much does it cost to open a Haraz Coffee House franchise?
Total initial investment ranges from $349,500 to $517,705, including a $50,000 initial franchise fee (reduced to $45,000 for qualifying veterans).
Is the Haraz Coffee House financial data a franchisee average?
No. The disclosed Item 19 data comes from a single Haraz-affiliated café (Village Qahwah LLC in Dearborn, MI), not a system-wide franchisee average. The FDD explicitly notes franchisee results may differ.
How long does it take to pay back a Haraz Coffee House franchise investment?
Using a conservative scenario based on 2022 affiliate performance, payback is estimated at roughly 1.5 years against a midpoint investment of $433,600, though this should be treated as a best-case benchmark, not a guarantee.
Bottom Line
Haraz Coffee House’s disclosed affiliate data shows a clear, improving profitability trend — owner benefit nearly doubled from 2022 to 2024 on a sub-4% royalty structure. But this is one affiliate café, not a franchisee average, so treat the payback timeline as a best-case reference point, not a forecast. Talk to existing franchisees before modeling your own numbers off this data.
For the full cost and FDD breakdown on Haraz Coffee House, see our companion page: Haraz Coffee House Franchise Costs, Profits & Fees.
— David Shawn Keener, MAA | sharpsheets.io | Last Updated: June 2026
External Sources: FTC.gov (FDD/Item 19 disclosure rules) | SBA.gov (loan program details)
