Qamaria Coffee Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$241,150 - $357,800
Franchise Fee
$20,000
Total US Locations
13
Business Summary
Qamaria Yemeni Coffee Franchise, LLC operates coffee cafes that offer a variety of traditional Yemeni beverages, hot and iced coffees, and fresh traditional pastries. These businesses are designed for customers to either take out or enjoy on the premises.
Corporate History
Qamaria Yemeni Coffee Franchise, LLC was organized on May 25, 2021, as a Michigan limited liability company. The brand began offering and selling Qamaria Coffee franchises in May 2021 and primarily focuses on operating the Qamaria Coffee franchise system. Qamaria Yemeni Coffee Franchise, LLC does not have any parent or predecessor companies. It has two affiliates, Kanz Yemeni Coffee, LLC, which sources coffee beans from Yemen, and Direct Traders Yemen, LLC, which purchases coffee beans from Kanz and sells certain goods like coffee products, paper products, syrups, and milk to franchisees. Neither Qamaria Yemeni Coffee Franchise, LLC nor its affiliates operated a business of this type before offering franchises in May 2021, nor have they offered franchises in any other line of business.
Financial Overview
Investment Range
$241,150 - $357,800
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$40,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$156,000
Equipment Costs (High)
$232,000
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Qamaria Yemeni Coffee Franchise, LLC's financial statements raise concerns regarding its ability to provide service and support to franchisees, as highlighted in the special risks section. The auditors consider whether there are conditions that raise substantial doubt about Qamaria Yemeni Coffee Franchise, LLC's ability to continue as a going concern. Historically, in previous periods, Qamaria Yemeni Coffee Franchise, LLC made excess distributions to members which led to a negative equity balance on an accrual basis, though management stated this was not a concern due to cash reserves and a steady monthly royalty stream. The most recent audited financials for December 31, 2023, show positive member's equity, but the general risk about financial ability to provide service and support remains noted.
Financing Details
Qamaria Yemeni Coffee Franchise, LLC does not offer any direct or indirect financing to its franchisees. Additionally, it does not guarantee any notes, leases, or other obligations of its franchisees.
Performance Metrics
Total US Locations
13
Franchised Units
10
Corporate Units
3
Avg Square Footage
2,500
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Qamaria Yemeni Coffee Franchise, LLC has no litigation to report, as stated in Item 3 of its Franchise Disclosure Document. No litigation is required to be disclosed in this item.
Bankruptcy History
Qamaria Yemeni Coffee Franchise, LLC has no bankruptcy history to disclose, as stated in Item 4 of its Franchise Disclosure Document. No bankruptcy is required to be disclosed in this item.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Qamaria Yemeni Coffee Franchise, LLC franchisees must be in good standing and not in breach of any agreements. They are required to provide timely advance notice of their intent to renew and pay a renewal fee, which is 20% of the then-current initial franchise fee. Franchisees must also sign a new franchise agreement, which may contain different terms, and execute a general release of claims. Furthermore, they need to modernize their business to meet Qamaria Yemeni Coffee Franchise, LLC's then-current standards of appearance and function, and their payments must be current.
Training & Support Program
Franchisor Assistance
Before opening, Qamaria Yemeni Coffee Franchise, LLC provides assistance with territory designation and site selection, including guidelines and criteria for an acceptable location. The brand loans a copy of its confidential operations manual and provides access to prototype design plans, specifications, décor, and layout for the business. Franchisees also receive a list of approved vendors and suppliers for equipment and initial inventory. Qamaria Yemeni Coffee Franchise, LLC assists with an opening marketing initiative and provides instruction and assistance by telephone or in-person. An initial training program for franchisees and their managers is also provided. After opening, Qamaria Yemeni Coffee Franchise, LLC offers periodic telephone and email support for daily operations, marketing, advertising, and personnel matters, including reviews and analyses of operations. The brand updates its confidential operations manuals and makes training available for replacement managers (for a fee). Qamaria Yemeni Coffee Franchise, LLC advises on supply sources and may negotiate contracts for equipment and supplies. The brand assists with sales promotions and administers a Brand Fund (though currently set at 0% contribution). At its option, Qamaria Yemeni Coffee Franchise, LLC may help set pricing, provide access to franchisee resources and company news, maintain a website, and offer marketing materials.
Initial Training Hours
52
Training Location
Lincoln Park or Commerce, Michigan
Ongoing Support
After opening, Qamaria Yemeni Coffee Franchise, LLC provides periodic telephone and electronic mail assistance for daily operations, marketing, advertising, personnel, and other operating issues. The brand updates its confidential operations manuals, which franchisees must follow. Training for replacement managers is available for a fee. Qamaria Yemeni Coffee Franchise, LLC also advises on supply sources and makes efforts to negotiate supply contracts. The brand may assist with sales promotions and administers a Brand Fund (currently with a 0% fee). At its option, Qamaria Yemeni Coffee Franchise, LLC may assist in establishing pricing, provide access to its manuals and franchisee resources, maintain a website that includes franchisee locations, and provide access to marketing materials and advertisements.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
non-exclusive
Territory Size Requirements
Qamaria Yemeni Coffee Franchise, LLC defines an Approved Territory that can range from a minimum of zero miles (limited to the approved location itself) up to a maximum area of 3 miles. In specific situations, such as when physical boundaries like rivers or multi-lane highways are present, the size of the Approved Territory will not exceed 1 mile.
Staffing Notes
Qamaria Yemeni Coffee Franchise, LLC requires franchisees to maintain a staff of competent, conscientious, and trained employees sufficient to operate the business according to brand standards. While the owner is not required to devote a minimum number of hours, a trained manager must be present whenever the Qamaria Coffee Business is open. Qamaria Yemeni Coffee Franchise, LLC does not directly control labor or employment matters for franchisees or their employees, and franchisees are responsible for determining whether to adopt the franchisor's suggestions. Mandatory operating procedures do not dictate the terms or conditions of employment for staff.