Risk Score
Pending analysis
Investment Range
$572,800 - $939,400
Franchise Fee
$60,000
Total US Locations
22
Business Summary
Qahwah House Premium Organic Coffee™ Coffee Shop franchises are specialty coffee shops that focus on selling organic coffee, various coffee-related products, and desserts. These shops offer options for both dine-in and carry-out customers.
Corporate History
Qahwah House Franchisor, LLC was organized as a Delaware limited liability company on October 4, 2024. Its parent company is Qahwah House Holdings, Inc. The brand's history extends through its affiliates; Qahwah House of Dearborn, LLC has operated a coffee shop since June 2019, QH West Dearborn, LLC since February 2021, QH Midtown, LLC since August 2024, and Abraham Foods, LLC since December 2024. An affiliate, Qahwah Trading, LLC, offered and sold five license agreements for Qahwah House™ Coffee Shops between 2019 and 2022. Qahwah House Franchisor, LLC began offering franchises in October 2024.
Financial Overview
Investment Range
$572,800 - $939,400
Franchise Fee (Low)
$60,000
Franchise Fee (High)
$60,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$390,000
Equipment Costs (High)
$622,200
Working Capital
$25,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's FDD includes a special risk disclosure noting that Qahwah House Franchisor, LLC's financial condition, as reflected in its financial statements, calls into question its ability to provide services and support to franchisees. The auditor's report, however, concludes that the financial statements present fairly and does not explicitly raise a going concern qualification, although the auditor evaluated for conditions that might raise substantial doubt about the company's ability to continue as a going concern.
Financing Details
Qahwah House Franchisor, LLC does not offer any direct or indirect financing for its franchises. Franchisees are responsible for securing their own financing, and the franchisor does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
22
Franchised Units
18
Corporate Units
4
Avg Square Footage
2,000
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Qahwah House Franchisor, LLC has no litigation history to report. The FDD states that no litigation is required to be disclosed in Item 3.
Bankruptcy History
Qahwah House Franchisor, LLC has no bankruptcy history to report. The FDD states that no bankruptcy is required to be disclosed in Item 4.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Qahwah House™ franchise, franchisees must be in good standing, without having received two or more default notices in the past 12 months. They must provide timely written notice of their intent to renew, demonstrate the ability to maintain or secure an approved location within their Protected Area, and agree to make any required updates to the location's appearance, equipment, and signage to meet current brand standards. Franchisees must have satisfied all reporting and monetary obligations to Qahwah House Franchisor, LLC and its affiliates or suppliers, completed any additional training, and sign a general release of claims. They must also sign Qahwah House Franchisor, LLC's then-current standard franchise agreement and pay a renewal fee equal to 25% of the current initial franchise fee. Qahwah House Franchisor, LLC must approve the renewal.
Training & Support Program
Franchisor Assistance
Qahwah House Franchisor, LLC provides assistance before and during the operation of a Qahwah House™ Coffee Shop. Before opening, this includes approving the site selection, providing written specifications for the location, reviewing the lease and construction plans, and providing specifications for equipment, fixtures, signs, and initial inventory from designated or approved suppliers. Franchisees also receive access to the Brand Standards Manual, remote and in-person initial training, and guidance on product pricing. Qahwah House Franchisor, LLC provides one representative for up to four days around the grand opening to assist in initial operations and reviews grand opening advertising plans. During operation, Qahwah House Franchisor, LLC continuously updates the Brand Standards Manual and product specifications, provides ongoing training, periodically visits the Coffee Shop to evaluate operations and offer advice, and provides guidance on product pricing. The franchisor administers the Brand Development Fund and reviews local advertising proposals. If needed, additional operational assistance can be provided for a fee.
Initial Training Hours
116
Training Location
Dearborn, Michigan
Ongoing Support
Qahwah House Franchisor, LLC provides ongoing support to its franchisees through continuous updates to its Brand Standards Manual and product specifications. Franchisees are offered and may be required to attend ongoing and refresher training programs. Qahwah House Franchisor, LLC or a designated third-party representative will periodically visit each Qahwah House™ Coffee Shop to inspect operations and provide necessary advice and assistance. Support is also available through email, internet resources, or telephone. The franchisor provides guidance on pricing products and services and administers the Brand Development Fund for the benefit of the Qahwah House™ brand. Additional operational assistance can be provided at the franchisee's request or requirement for a daily charge.
Franchise Requirements
Ideal Candidate Profile
Qahwah House Franchisor, LLC seeks franchisees who, if not personally serving as the General Manager, will appoint a General Manager to devote full-time effort to the day-to-day operations and marketing of the Qahwah House™ Coffee Shop. The Designated Owner must retain ultimate authority and responsibility for management. Both the Designated Owner (or another owner) and the General Manager must successfully complete the franchisor's initial training program and sign confidentiality and non-competition agreements. The General Manager may also be required to have an equity or profit participation interest in the Coffee Shop. Franchisees are responsible for ensuring the Coffee Shop is always supervised by a trained General Manager. The franchisor also looks for candidates for multiple locations with good character, business experience, financial strength, credit standing, health, reputation, business ability, experience, and availability of management personnel.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
protected
Territory Size Requirements
Qahwah House Franchisor, LLC grants franchisees a Protected Area defined by a geographic area surrounding their Coffee Shop, typically a zip code or a portion of a zip code. This area generally includes a population of approximately 50,000 people. In densely populated areas, the Protected Area may be smaller than a single zip code, and in some cases, no Protected Area may be granted. The specific Protected Area is determined by Qahwah House Franchisor, LLC in its sole discretion, usually after a location for the Coffee Shop has been approved.
Staffing Notes
Qahwah House Franchisor, LLC requires that each Qahwah House™ Coffee Shop always operates under the direct supervision of a General Manager who has successfully completed the initial training program, signed a confidentiality and non-competition agreement, and potentially holds an equity or profit participation interest in the business. If the Designated Owner is not the General Manager, the General Manager reports directly to the Designated Owner. Franchisees are responsible for hiring and training all other employees in accordance with Qahwah House Franchisor, LLC's specifications and for maintaining a continuous training program for their management and staff. All employees must comply with operational standards, wear specified uniforms, and present a professional appearance. The Brand Standards Manual includes job descriptions for roles like Store Manager, Shift Manager, and Barista, and outlines procedures for recruiting and training staff.