Kahala Coffee Traders Franchise FDD, Profits & Costs (2025)
Kahala Coffee Traders is an American coffeehouse franchise recognized for its high-quality espresso, freshly brewed coffee, and specialty tea drinks. The brand made its debut in 2011 and is operated by Kahala Franchising, L.L.C., a division of Kahala Brands Inc., which is owned by MTY Food Group.
The company is based in Scottsdale, Arizona, where it was founded in 2008. Franchising began in 2011, giving aspiring business owners the chance to run their own café under a well-established name in the coffee industry.
Its menu features an extensive selection of beverages, from hot and iced coffees to espresso creations, along with the brand’s signature Kona-blend coffee, European-style espresso drinks, frappes, and teas. Light food offerings such as pastries, sandwiches, oatmeal bowls, and parfaits complement the drinks menu.
Kahala Coffee Traders differentiates itself by delivering a fast-casual café environment centered on both quality products and speedy service.
Initial Investment
How much does it cost to start a Kahala Coffee Traders franchise? It costs on average between $88,000 – $517,000 to start a Kahala Coffee Traders franchised business.
This covers expenses for build-out, equipment, initial inventory, and early operational costs. The total investment can vary based on several factors, such as the size and layout of the café, its location, and whether the franchisee decides to lease or buy the premises.
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 Traditional Kahala Coffee Traders restaurant.
For more information on costs required to start a Kahala Coffee Traders franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $14,000 to $30,000 |
| Lease Review Fee | $0 to $2,500 |
| Rent/Security Deposit (for 3 months) | $6,000 to $20,000 |
| Travel and Living Expenses (2 persons) while training | $2,500 to $5,000 |
| Architectural Fees | $10,000 to $20,000 |
| Leasehold Improvements | $83,000 to $219,500 |
| Restaurant Equipment, Furniture, Small Wares, Interior Signage and Menu Panels | $64,000 to $129,000 |
| Exterior Signage | $8,000 to $17,000 |
| Computer Hardware, Software (POS System) | $3,000 to $10,000 |
| PCI Compliance Costs | $150 to $1,300 |
| Opening Inventory (food and paper) | $2,500 to $7,000 |
| Business Insurance | $1,000 to $5,000 |
| Miscellaneous Opening Costs | $4,750 to $17,200 |
| Grand Opening Marketing | $10,000 |
| Depository Account | $3,000 |
| Additional Funds – 3 month initial period | $5,000 to $20,000 |
| TOTAL | $216,900 to $516,500 |
Download the Franchise Disclosure Document
Frequently Asked Questions
How many Kahala Coffee Traders locations are there?
As of the latest data, Kahala Coffee Traders has 5 total U.S. locations, all of which are franchise-owned.
What is the total investment required to open a Kahala Coffee Traders franchise?
The total investment required to open a Kahala Coffee Traders franchise ranges from $88,000 to $517,000.
What are the ongoing fees for a Kahala Coffee Traders franchise?
The ongoing fees for a Kahala Coffee Traders franchise include a royalty fee of 6% of gross sales. In addition, franchisees must pay a marketing and advertising fee of up to 3% of gross sales, which contributes to the brand’s advertising and promotional activities.
What are the financial requirements to become a Kahala Coffee Traders franchisee?
To become a Kahala Coffee Traders franchisee, you are required to have a minimum net worth of $100,000 and at least $50,000 in liquid capital. These financial requirements help ensure that franchisees have the resources to cover startup costs and sustain operations during the initial phase of the business.
Who owns Kahala Coffee Traders?
Kahala Coffee Traders franchise is owned by Kahala Brands.
Disclaimer
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