Risk Score
Pending analysis
Investment Range
$282,300 - $424,000
Franchise Fee
$35,000
Total US Locations
4
Business Summary
Delah Coffee Franchising, LLC offers franchises for Delah Coffee, a coffee shop that features traditional Yemeni coffee, teas, cakes, and other menu items. Delah Coffee shops are designed for on-premises dining, carryout, catering, and delivery. The company provides options for both individual unit franchises and multi-unit development within a specified territory.
Corporate History
Delah Coffee Franchising, LLC was established on October 21, 2024, in California. The company operates the Delah Coffee Shop franchise system and began offering franchises on March 11, 2025. Although the franchisor entity itself is new, its affiliates have operated Delah Coffee Shops since June 2022. Delah Coffee Franchising, LLC does not have any predecessors or a parent company and has not conducted business in other lines.
Financial Overview
Investment Range
$282,300 - $424,000
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$35,000
Royalty %
4.5%
Marketing %
1%
Equipment Costs (Low)
$182,500
Equipment Costs (High)
$285,500
Working Capital
$17,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Delah Coffee Franchising, LLC's financial statements show very limited capital, with cash and cash equivalents of $500 and total members' equity of $500 as of January 2, 2025. The FDD's Special Risks section explicitly states that Delah Coffee Franchising, LLC's financial condition, as reflected in its financial statements, calls into question its ability to provide services and support to franchisees.
Financing Details
Delah Coffee Franchising, LLC does not offer any direct or indirect financing to its franchisees. Additionally, Delah Coffee Franchising, LLC does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
4
Franchised Units
0
Corporate Units
4
Avg Square Footage
2,200
Franchising Since
2025
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
While Item 3 states no litigation information is required, Item 13 discloses a trademark opposition proceeding. On October 19, 2023, a Notice of Oppositions was filed in the USPTO Trademark Trial and Appeal Board against Delah Coffee Franchising, LLC's applications to register its primary trademarks (Serial Nos. 97524668 and 97524534). The opposing party claims that Delah Coffee Franchising, LLC's marks are confusingly similar to their own trademark (Dellah Coffee & Brunch House) and that they used their mark earlier. Delah Coffee Franchising, LLC filed answers denying these allegations on November 24, 2023. This trademark opposition proceeding is ongoing.
Bankruptcy History
Delah Coffee Franchising, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Delah Coffee Franchising, LLC franchisees must provide 180 days prior written notice of their intent to renew and be in full compliance with their Franchise Agreement and all other agreements. They must also sign Delah Coffee Franchising, LLC's then-current Franchise Agreement and related agreements for the renewal term, which may have materially different terms. Franchisees are required to sign a general release in Delah Coffee Franchising, LLC's favor, pay a renewal fee, remodel and upgrade their shop to meet current brand standards, and secure the legal right to continue occupying their shop location. All owners and their spouses must also guarantee the terms of the new renewal agreement.
Training & Support Program
Franchisor Assistance
Delah Coffee Franchising, LLC provides a range of assistance to its franchisees. Before opening, Delah Coffee Franchising, LLC grants the right to operate a shop in a designated territory, provides access to its confidential Operations Manual, and reviews and approves proposed shop locations. It also provides lists of approved suppliers, equipment, furniture, and fixtures, and identifies the franchisee's shop on the Delah Coffee Franchising, LLC website. Initial training is provided to the franchisee's managing owner and one manager. After opening, Delah Coffee Franchising, LLC may require supplemental on-site training (for a fee), provide ongoing communication regarding operating standards, marketing standards, and approved vendors. Delah Coffee Franchising, LLC may also administer marketing funds and may organize annual system conferences (for a fee).
Initial Training Hours
80
Training Location
Pleasanton, California and San Francisco, California
Ongoing Support
After opening, Delah Coffee Franchising, LLC may require franchisees and their operating managers to participate in supplemental on-site training, for which a fee of $300 per trainer per day plus expenses is charged. Delah Coffee Franchising, LLC also communicates updates to operating standards, provides marketing standards and approval for franchisee-directed marketing materials, and provides lists of approved vendors. Franchisees may be required to attend an annual system conference, with a fee not exceeding $1,500. Additionally, Delah Coffee Franchising, LLC may administer system-wide marketing funds (currently not assessed) and designates standards for hours of operation and product pricing. Delah Coffee Franchising, LLC does not assist with the hiring or training of franchisee employees.
Franchise Requirements
Ideal Candidate Profile
Delah Coffee seeks franchisees or Managing Owners who are actively involved and hands-on in the day-to-day supervision and operation of their shop. Ideal candidates should possess good moral character, sufficient business experience, aptitude, and financial resources. They must also meet Delah Coffee's applicable standards for franchisees and should not own or operate a competitive business. If the Managing Owner is not personally managing day-to-day, an approved Operating Manager must do so after completing the training program.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
non-exclusive
Territory Size Requirements
Delah Coffee Franchising, LLC designates a territory around each approved shop location. Generally, this Designated Territory is the smaller of a five-mile radius from the shop location (travelable by road) or an area encompassing a population of 30,000 people at the time the Franchise Agreement is signed. If a shop is in a non-traditional or captive market location, such as a shopping mall or airport, the Designated Territory may be limited to the physical boundaries of that facility.
Staffing Notes
Delah Coffee Franchising, LLC requires the franchisee's Managing Owner to be personally responsible for the overall management and supervision of their shop. While the Managing Owner is recommended to be involved in day-to-day operations, they can hire an Operating Manager to handle on-site daily tasks, provided the Operating Manager meets specific criteria, completes Delah Coffee Franchising, LLC's initial training program, and signs a confidentiality agreement. If a franchisee operates multiple shops, each shop must have an Operating Manager on-site. Delah Coffee Franchising, LLC does not assist with hiring or training employees, but franchisees are responsible for ensuring all staff wear approved uniforms and prepare products according to system standards.